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Gemfields Posts $98.5M Loss, Writes Down Value of Ruby Mine
Its Montepuez Ruby Mining operation in Mozambique, which is not yielding enough high-quality rubies, has taken a $125 million hit.
Gemfields just released its financial results for the first half of 2026 ended June 30. The colored gemstone miner posted a larger net loss and was forced to write down the value of its ruby mine in Mozambique by more than $100 million.
London—Gemfields has written down the value of Montepuez Ruby Mining (MRM) Mozambique by $125.2 million following lower-than-expected recovery of premium rubies.
The colored gemstone miner posted a net loss of $98.5 million in the first half of 2026, compared with a $24.6 million loss in the same period last year, driven primarily by the impairment charge, according to its interim financial results, released today.
Gemfields also increased its 2025 impairment from $35 million to $65 million after identifying inconsistencies in the life-of-mine report for MRM, Becki Tate, Gemfields head of finance operations, said during the shareholder webcast earlier today.
It was a difficult first half, due largely to the lack of high-quality rubies coming out of MRM, which remains its “most significant operational and financial challenge,” interim CEO David Lovett said in a news release.
A wetter-than-usual rainy season also limited access to key mining areas at MRM, Tate noted during the webcast, forcing mining to be concentrated to lower-grade sections.
However, more recent ruby recoveries have shown signs of improvement.
Though the commissioning and ramp-up period has been more challenging and prolonged than anticipated, the new processing plant at MRM, known as PP2, is now largely operational and is achieving, and at times exceeding, its 400 tons-per-hour target, Lovett said during the webcast.
PP2 is expected to be fully operational by the end of the fourth quarter.
“The principal focus of management remains on testing and validating recent operational performance, improving mine planning and establishing a more consistent operating platform at MRM,” Lovett said.
“After an extended period of operational challenges, a return to sustainable profitability will require consistent execution over time rather than short-term improvements. While recent operational performance has been more encouraging than that seen earlier in the year, significant work remains to be done before we can conclude that MRM has turned a corner.”
Gemfields’ first-half revenue totaled $106 million, up from $64.2 million in the same period last year.
MRM brought in $76.1 million, although the miner noted that the deferral of a late 2025 ruby auction to February 2026 resulted in two auctions in the first half; normally, it only has one.
That auction generated $53 million. Its inaugural Trade Select auction this past June generated $23 million.
Related stories will be right here …
The colored gemstone miner posted a net loss of $98.5 million in the first half of 2026, compared with a $24.6 million loss in the same period last year, driven primarily by the impairment charge, according to its interim financial results, released today.
Gemfields also increased its 2025 impairment from $35 million to $65 million after identifying inconsistencies in the life-of-mine report for MRM, Becki Tate, Gemfields head of finance operations, said during the shareholder webcast earlier today.
It was a difficult first half, due largely to the lack of high-quality rubies coming out of MRM, which remains its “most significant operational and financial challenge,” interim CEO David Lovett said in a news release.
A wetter-than-usual rainy season also limited access to key mining areas at MRM, Tate noted during the webcast, forcing mining to be concentrated to lower-grade sections.
However, more recent ruby recoveries have shown signs of improvement.
Though the commissioning and ramp-up period has been more challenging and prolonged than anticipated, the new processing plant at MRM, known as PP2, is now largely operational and is achieving, and at times exceeding, its 400 tons-per-hour target, Lovett said during the webcast.
PP2 is expected to be fully operational by the end of the fourth quarter.
“The principal focus of management remains on testing and validating recent operational performance, improving mine planning and establishing a more consistent operating platform at MRM,” Lovett said.
“After an extended period of operational challenges, a return to sustainable profitability will require consistent execution over time rather than short-term improvements. While recent operational performance has been more encouraging than that seen earlier in the year, significant work remains to be done before we can conclude that MRM has turned a corner.”
Gemfields’ first-half revenue totaled $106 million, up from $64.2 million in the same period last year.
MRM brought in $76.1 million, although the miner noted that the deferral of a late 2025 ruby auction to February 2026 resulted in two auctions in the first half; normally, it only has one.
That auction generated $53 million. Its inaugural Trade Select auction this past June generated $23 million.
Kagem, its emerald mining operation in Zambia, contributed $26.7 million from a higher-quality emerald auction held in May.
Though operating costs at Kagem have been rising due to higher fuel prices and a stronger Zambian kwacha, Gemfields said production is strong.
The miner’s net debt position was $44.2 million before $33.3 million of auction receivables, which have now been collected in full, it said.
Gemfields reported headline earnings of 0.6 cents per share, compared with a 1.5 cents loss in the first half of 2025.
It posted a loss per share of 4.3 cents, primarily driven by the write down, compared with 1.7 cents in the same period last year.
Moving forward, the miner’s said its priorities are to stabilize operations and reduce production volatility at MRM, sustain Kagem’s strong performance, preserve cash, and rebuild balance sheet resilience.
Gemfields has three more auctions planned for 2026.
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