SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceSourcingDec 24, 2024
Gemfields to Temporarily Suspend Emerald Mining
The move is one of several cost-cutting measures outlined by the company as it faces a weaker luxury market and other challenges.
Gemfields will temporarily suspend mining at its Kagem emerald mine in Zambia as part of its plans to trim costs and streamline its business.
London—Gemfields announced Monday it plans to temporarily suspend mining operations at its Kagem emerald mine in Zambia alongside other initiatives designed to cut costs and streamline its business as the miner navigates several challenges.
As of Monday morning, shares in Gemfields Group were down 9 percent.
The company has recently reported poor auction results due to an oversupply of Zambian emeralds at discounted prices by a competing Zambian emerald producer; a lower production of “premium” rubies at Montepuez Ruby Mining (MRM) Limitada in Mozambique; and a generally weaker luxury and gemstone market due in part to economic difficulties in China and geopolitical turbulence.
Gemfields’ most recent emerald auction totaled $16.1 million in revenue, while its ruby auction totaled $46.2 million, which are materially lower than the results of previous years.
Though Gemfields described its challenges as “transient,” it is taking measures to streamline its operations.
It will suspend mining at Kagem for up to six months and instead focus on processing the mine’s existing ore stockpiles.
At its ruby development assets in northern Mozambique, Gemfields will halt all non-essential spending and suspend planned capital expenditures, particularly at Megaruma Mining Limitada and Campos De Joia Limitada.
At Eastern Ruby Mining, the core developmental work will continue, but the capital expenditure associated with its originally planned processing plant will be delayed.
At Nairoto Resources Limitada, its gold project north of MRM, it is halting operations and looking for potential buyers.
Gemfields is also “assessing strategic options” for storied luxury brand Fabergé, as well as looking at operations and businesses across the company.
Related stories will be right here …
As of Monday morning, shares in Gemfields Group were down 9 percent.
The company has recently reported poor auction results due to an oversupply of Zambian emeralds at discounted prices by a competing Zambian emerald producer; a lower production of “premium” rubies at Montepuez Ruby Mining (MRM) Limitada in Mozambique; and a generally weaker luxury and gemstone market due in part to economic difficulties in China and geopolitical turbulence.
Gemfields’ most recent emerald auction totaled $16.1 million in revenue, while its ruby auction totaled $46.2 million, which are materially lower than the results of previous years.
Though Gemfields described its challenges as “transient,” it is taking measures to streamline its operations.
It will suspend mining at Kagem for up to six months and instead focus on processing the mine’s existing ore stockpiles.
At its ruby development assets in northern Mozambique, Gemfields will halt all non-essential spending and suspend planned capital expenditures, particularly at Megaruma Mining Limitada and Campos De Joia Limitada.
At Eastern Ruby Mining, the core developmental work will continue, but the capital expenditure associated with its originally planned processing plant will be delayed.
At Nairoto Resources Limitada, its gold project north of MRM, it is halting operations and looking for potential buyers.
Gemfields is also “assessing strategic options” for storied luxury brand Fabergé, as well as looking at operations and businesses across the company.
Gemfields also noted challenges posed by the ongoing civil unrest and the supply chain and logistics interruptions that have developed in Mozambique as a result of the contested general election.
Though mining operations at MRM have not yet been affected, the operating risk has increased, said the miner, noting that the safety of its employees, contractors, and community members is a priority.
Gemfields said it will continue to focus on the completion of the second ruby processing plant at MRM, its principal growth project.
“Gemfields regards the construction of the second ruby processing plant at MRM as a critical project to increase premium ruby production and deliver additional revenue for the group by the end of 2025,” said the company, noting the project is on budget and on schedule.
The company’s management reiterated what it said in its 2024 interim report, noting that it is prepared to take additional cost-cutting measures and look to external funding if necessary.
More on Sourcing
The Latest
MajorsMay 16, 2025
Saks Fifth Avenue, Amazon Partner on Luxury Online StorefrontPlus, parent company Saks Global announces plans to cut ties with up to 600 vendors.
Recorded WebinarsMay 16, 2025
Watch: Physical Retail Is Not DeadPeter Smith joined Michelle Graff to chat about the state of brick-and-mortar stores and share a few book and podcast recommendations.
CollectionsMay 16, 2025
Piece of the Week: Tejen’s ‘Candy Bowl’ Torque NecklaceThe necklace features a candy-colored Australian white opal in 18-karat Fairmined gold, as the brand was named a Fairmined ambassador.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
Supplier BulletinMay 15, 2025
Treasure Hunting at the Las Vegas Antique Jewelry and Watch ShowSponsored by the Las Vegas Antique Jewelry and Watch Show
Weekly QuizMay 15, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsMay 15, 2025
'The Mediterranean Blue' Diamond Sells for $21M at Sotheby’sA private American collector purchased the 10-carat fancy vivid blue diamond.
CollectionsMay 15, 2025
Jessica McCormack’s ‘Fruit Salad’ Collection Is Fresh for SummerThe designer has taken the appeal of freshly picked fruit and channeled it into a capsule collection of earrings, necklaces, and pendants.
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest AdditionSupplier Spotlight Sponsored by GIA
Policies & IssuesMay 15, 2025
State of Retail: How to Better Serve Customers With DisabilitiesAround 54 million Americans and counting live with a disability. Here’s how to make your jewelry store and website more accessible.
Events & AwardsMay 15, 2025
Poet Sekou Andrews to Give Closing Keynote at ConvergeThe event is also accepting poster submissions now through June 16.
Policies & IssuesMay 14, 2025
Here’s What Happened to Pope Francis’ RingBefore Pope Leo XIV was elected, a centuries-old procedure regarding the late pontiff’s ring was followed.
AuctionsMay 14, 2025
Custom Rolex Pulled From Sotheby’s SaleThe one-of-a-kind platinum Rolex Cosmograph Daytona was estimated to fetch up to $1.7 million.
Lab-GrownMay 14, 2025
State of Diamonds: What’s Next for Lab-Grown Diamonds?While the product has entrenched itself in the market, retailers and consultants are assessing the next phase of the category’s development.
CrimeMay 14, 2025
Seattle Detectives Seek Public’s Help in Tiffany & Co. Robberies The police are trying to identify the man suspected of robbing two Tiffany & Co. locations in the area.
MajorsMay 14, 2025
Jeff Corey Elected Chair of JBT Board The well-known Maine jeweler takes over for Brian Fleming and will serve a one-year term.
Policies & IssuesMay 14, 2025
Foundrae Donates $11K to Ethical MetalsmithsThe donation was the result of the brand’s annual Earth Day Ingot event.
IndependentsMay 13, 2025
Eiseman Jewels’ Renovated Dallas Store Is Bigger and BetterLocated in NorthPark Center, the revamped store is nearly 2,000 square feet larger and includes the first Tudor boutique in Dallas.
MajorsMay 13, 2025
DCA Announces New Learning Platform, Course UpdatesThe nonprofit has made updates to the content in its beginner and advanced jewelry sales courses.
MajorsMay 13, 2025
BIJC Launches New Education FundBIJC President Malyia McNaughton will shift roles to lead the new foundation, and Elyssa Jenkins-Pérez will succeed her as president.
TrendsMay 13, 2025
State of Jewelry Design: The Top 10 Jewelry Trends of the Past DecadeAs a nod to the theme of JCK Las Vegas 2025, “Decades,” National Jeweler took a look back at the top 10 jewelry trends of the past 10 years.
Lab-GrownMay 12, 2025
Lightbox to Go Dark by Summer, De Beers Says The company plans to halt all consumer-facing activity this summer, while Lightbox factory operations will cease by the end of the year.
Policies & IssuesMay 12, 2025
Tariffs on Chinese Imports Temporarily Slashed as U.S.-China Reach Deal Following weekend negotiations, the tax on Chinese goods imported into the United States will drop by 115 percent for the next 90 days.
Events & AwardsMay 12, 2025
Jewelry By Picasso, Dalí on Display at Florida Art Museum “Artists’ Jewelry: From Cubism to Pop, the Diane Venet Collection” is on view at the Norton Museum of Art through October.
Events & AwardsMay 12, 2025
CASE Awards Now Accepting Entries For 2025The deadline to submit is June 16.
IndependentsMay 09, 2025
Lugano Diamonds CEO Resigns Amid Internal InvestigationMoti Ferder stepped down Wednesday and will not receive any severance pay, parent company Compass Diversified said.
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s DayLichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.
