Gemfields Auction Revenue Surges Despite Weak Ruby Recoveries

(IDEX Online) - Gemfields reported a sharp rebound in auction revenue from rubies and emeralds in the first half of 2026, up 71.5% to $102.9 million.

The improved results were driven by strong demand at recent high‑quality sales, and are reflected in the company's improved net debt position of $44.2 million (before auction receivables of $33.3 million) at 30 June 2026.

That compares with $61.2 million a year earlier (before auction receivables of $16.1 million).

The London-listed miner did, however, note in its Operational Update of 30 July, that the Montepuez ruby mine in Mozambique, in which it holds a 75% stake, continued to experience weak premium grade ruby recovery, at 0.025 carats per tonne in the six-months to 30 June 2026.

Kagem, the emerald mine in Zambia, in which it also holds a 75% stake, maintained healthy premium emerald production during the first half, it said, although  higher fuel prices, exchange rate pressures and increased mining activity impacted operating costs.

In a separate report on Auction Results - total revenues were $23.1 million in June - Gemfields noted that Montepuez had also been impacted by heavy rainfall and commissioning issues with a new processing plant (PP2).

The mine was also suffering as a result of insurgent attacks on nearby villages and 700 illegal miners entering its property every day.

"Declining grades, PP2 commissioning challenges, security-related disruption, illegal mining activity and delayed VAT receipts are collectively expected to adversely impact production, quality mix and cash flow," it concluded.

 Pic of rough emeralds, courtesy Gemfields.