Gemfields expects impairments to lead to full-year loss
Newly implemented export duties on Zambian gemstones cause a $22.6m impairment of precious-stone producer’s Kagem mine
Precious-stone producer Gemfields warned on Friday that it expected to swing into a full-year loss for the year to end-December, hit by impairments of some of its largest assets. The company expects a loss per share of US5c during the period, from earnings per share of 4c previously. Net loss after tax was expected to be $60.4m, from a profit of R45.1m in the period, the company said in a statement. Due to newly implemented 15% export duties on emeralds and beryl in Zambia, an impairment charge of $22.6m was recognised against Gemfield’s Kagem mine. The company also sold about 60% of its shares in Jupiter, part of that company’s relisting on the Australian Securities Exchange. Although Gemfields realised profits of $11.7m from this sale, a decline in Jupiter’s share price resulted in a $11.9m value loss for the company’s remaining shares. A review of the company’s holdings in Sedibelo Platinum also resulted in a fair value loss of $47.6m. Gemfields — previously called Pallinghurst R...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.