Gemfields Group Limited, a coloured gemstone miner, has outlined a number of strategic steps to reduce costs and optimize its operations in response to four major issues.
The company’s most recent emerald and ruby auctions generated fewer revenues than anticipated due to an oversupply of Zambian emeralds at discounted rates, lesser output of quality rubies, a weaker luxury market, and civil upheaval in Mozambique.
To resolve these difficulties, Gemfields is pausing operations at Kagem operations Limited, its Zambian emerald mine, for up to six months. It is also delaying non-essential spending and planned major expenditures on ruby development projects in Mozambique. Gemfields is selling its Nairoto gold property and exploring strategic options for its luxury brand, Fabergé. The corporation is implementing focused rationalisation throughout its operations.
Gemfields is convinced that these steps will be transitory and allow it to navigate the current market conditions. The company is still focusing on completing its second ruby processing plant at Montepuez Ruby Mining Limitada, which is scheduled to be completed by the end of the first half of 2025.