Coloured gemstone specialist Gemfields will not push through with a planned auction in November due to low production at its Kagem emerald mine in Zambia.

As such, the company said it is unlikely to replicate last year’s standout financial performance.

Sean Gilbertson, CEO of Gemfields, explained that the quality and quantity of production at Kagem were lower than expectations, hence the decision to withdraw its higher-quality emerald auction. The miner said it will bring its available production to market in 2024.

“This is understandably disappointing, but such periods have been seen in the past and we always wish to ensure we have an optimal offering when we bring our gemstones to auction. Given the withdrawal of this auction, we are not presently positioned to match 2022’s standout financial performance in 2023,” Gilbertson commented.

The company recorded total revenues of US$154 million for the first six months of 2023, down by 20 per cent from the same prior-year period, while net profit dropped by 68 per cent year on year to US$18 million from US$57 million.    

Gilbertson, however, noted that rough emeralds and rubies remained in high demand after the step-change in market pricing seen across last year. He also saw the upward trajectory of price and demand for coloured gemstones. 

“The group remains hopeful that the markets for emeralds and rubies will continue to be resilient, and Gemfields’ strong performance will continue into 2024,” the company stated.