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.
Editors' Picks
Sponsored by
More on Sourcing
The Latest
CrimeFeb 13, 2026
JSA Offering $10K Reward in Nancy Guthrie Case Guthrie, the mother of “Today” show host Savannah Guthrie, was abducted just as the Tucson gem shows were starting.
IndependentsFeb 13, 2026
97-Year-Old New Mexico Jewelry Store To CloseButterfield Jewelers in Albuquerque, New Mexico, is preparing to close as members of the Butterfield family head into retirement.
CollectionsFeb 13, 2026
A ‘Rosebud’ Necklace for Valentine’s DayPaul Morelli’s “Rosebud” necklace, our Piece of the Week, uses 18-karat rose, green, and white gold to turn the symbol of love into jewelry.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
MajorsFeb 13, 2026
JFC Announces New BeneficiariesThe nonprofit has welcomed four new grantees for 2026.
Weekly QuizFeb 12, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsFeb 12, 2026
These 8 Saks Fifth Avenue Stores Are ClosingParent company Saks Global is also closing nearly all Saks Off 5th locations, a Neiman Marcus store, and 14 personal styling suites.
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of AragonIt is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused AwardThe “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set StunnerSourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy AgainThe clothing and accessories chain announced last month it would be closing all of its stores.
CollectionsFeb 11, 2026
Zales Turns Sweethearts Into Jewelry for Valentine’s Day CollectionThe “Zales x Sweethearts” collection features three mystery heart charms engraved with classic sayings seen on the Valentine’s Day candies.
TechnologyFeb 11, 2026
Gemvision Symposium 2026 Slated for AprilThe event will include panel discussions, hands-on demonstrations of new digital manufacturing tools, and a jewelry design contest.
Events & AwardsFeb 11, 2026
TJS Announces Roundtable, Launches New AppRegistration is now open for The Jewelry Symposium, set to take place in Detroit from May 16-19.
TrendsFeb 10, 2026
Bad Bunny Wears Football-Shaped ‘Desert Diamond’ for Halftime PerformanceLady Gaga, Cardi B, and Karol G also went with diamond jewelry for Bad Bunny’s Super Bowl halftime show honoring Puerto Rico.
SurveysFeb 10, 2026
Shoppers to Spend Big on Jewelry This Valentine’s Day, Says NRFJewelry is expected to be the No. 1 gift this year in terms of dollars spent.
FinancialsFeb 10, 2026
Kering Plans Transformation as 2025 Sales Sink 13%As star brand Gucci continues to struggle, the luxury titan plans to announce a new roadmap to return to growth.
SourcingFeb 10, 2026
AGTA To Debut ‘Stuller Color of the Year’ Spectrum Awards CategoryThe new category asks entrants for “exceptional” interpretations of the supplier’s 2026 color of the year, which is “Signature Red.”
Policies & IssuesFeb 09, 2026
U.S., India Trade Deal One Step Closer to Being FinalizedThe White House issued an official statement on the deal, which will eliminate tariffs on loose natural diamonds and gemstones from India.
Events & AwardsFeb 09, 2026
JA Now Accepting Entries for 2026 CASE AwardsEntries for the jewelry design competition will be accepted through March 20.
IndependentsFeb 09, 2026
James Free Jewelers Unveils Revamped FlagshipThe Ohio jeweler’s new layout features a curated collection of brand boutiques to promote storytelling and host in-store events.
TrendsFeb 09, 2026
These 14 Jewels Will Melt Your Heart This Valentine’s DayFrom heart motifs to pink pearls, Valentine’s Day is filled with jewelry imbued with love.
CrimeFeb 06, 2026
Florida Man Sentenced After Selling Fake Native American Jewelry for a Decade Prosecutors say the man attended arts and craft fairs claiming he was a third-generation jeweler who was a member of the Pueblo tribe.
FinancialsFeb 06, 2026
Pandora’s North America GM Departs Amid Executive ChangesNew CEO Berta de Pablos-Barbier shared her priorities for the Danish jewelry company this year as part of its fourth-quarter results.
TrendsFeb 06, 2026
Margot Robbie, Jacob Elordi Wear Matching Cece Jewellery Signet RingsOur Piece of the Week picks are these bespoke rings the “Wuthering Heights” stars have been spotted wearing during the film’s press tour.
MajorsFeb 05, 2026
Pandora to Begin Selling Platinum-Plated JewelryThe introduction of platinum plating will reduce its reliance on silver amid volatile price swings, said Pandora.
SourcingFeb 05, 2026
De Beers Lowers Production Guidance for 2026, Anglo Mulls Another WritedownIt would be the third impairment charge in three years on De Beers Group, which continues to grapple with a “challenging” diamond market.
