Gemfields warns of hefty loss as Covid-19 hits auctions
Group that has only been able to hold one sale in 2020 has written down jewellery business
Precious-stones group Gemfields, the owner of Fabergé, has warned of an interim net loss of about two-thirds of its R1.47bn market capitalisation amid the continuing disruption Covid-19 has caused for gem auctions.
The group expects a loss after tax of R959m in its six months to end-June, from profit of R177m previously, with the group only able to hold one auction in 2020.
Auctions originally scheduled for May, June and August were cancelled.
The group said in a trading update it remains unable to provide reliable guidance about when it might next be able to host gemstone auctions, or generate meaningful revenue from gemstone sales.
Gemfields has also written down Fabergé by $11.5m (R192m), due to lower than expected sales during Covid-19, and a general downturn in the market.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.