ColumnistsApr 30, 2026
Peter Smith: A Sleazy Salesman and the Case for Regret Avoidance Smith uses a comment he overheard in the grocery store to remind retailers that their job is to inspire buying behavior, not just sell.
SourcingApr 01, 2019
Gemfields Reports $60M Loss in 2018
A new tax levied in Zambia played a significant part in putting the colored stone miner in the red for the full year.
Gemfields recovered the 5,655-carat “Inkalamu” emerald from its Kagem mine in October and sold it a month later for an undisclosed amount to Dia-Color.
London—Gemfields recorded a net loss in 2018, hurt in part by a new tax levied in Zambia and a costly court case.
In its full year ended Dec. 31, which was first full fiscal year for the company since the July 2017 takeover of its biggest investor, Pallinghurst, Gemfields reported revenue of $206.1 million, a 252 percent increase over 2017. This was the first time it crossed the $200-million mark, the colored gemstone miner noted.
EBITDA also increased, from $30.5 million to $58.9 million.
Even with revenue hitting a new high, the company recorded a $60.4 million loss for the fiscal year, hurt by the fair-value loss on the Sedibelo platinum mines, in which Gemfields holds a 6.5 percent stake, a $22.6 million impairment charge applied to Kagem because of newly implemented tax changes in Zambia and a costly court case.
Starting Jan. 1, the Zambian government introduced a 15 percent export duty on gemstones and metals to help reduce the country’s debt. When combined with the existing 6 percent mineral royalty already levied on gemstones, it increases Gemfields’ total tax on revenue at Kagem to 21 percent.
Also last fiscal year, a group of Mozambicans filed a lawsuit against the London-based colored gemstone miner over alleged human rights abuses at the company’s Montepuez ruby mine. In January, Gemfields agreed to pay $7.6 million on a no-admission-of-liability basis to settle the lawsuit.
Gemfields’ share price reflected the challenges it faced at its operations throughout the year, falling 40 percent by the end of the year.
RELATED CONTENT: Fallout from Nirav Modi Scandal Hits GemfieldsIn its annual results release, Chairman Brian Gilbertson said the company’s biggest challenge in the coming months will lie in Zambia. In addition to the higher taxes, he noted that the mineral royalty is no longer tax-deductible for corporations.
Because of the new taxes enacted, Gemfields has recognized an impairment loss of $22.6 million in respect to Kagem, its emerald mine there that faces other market headwinds as well.
Production in the “premium” category at Kagem reached 224,000 carats, representing a 400 percent increase in the category’s production in the 12-month period to June 2017 (Gemfields included pre-acquisition figures for the full-year t June 30, 2017, where possible to allow for better comparability).
Kagem also set new records for ore production and total carats produced. However, as production soared, the emerald market struggled.
Editors' Picks
Sponsored by
Most of Gemfields’ emerald dcustomers operate in India and, as such, were grappling with deflating property prices in Jaipur, lack of liquidity and heightened regulatory scrutiny in India following the Nirav Modi scandal.
As a result, the four emerald auctions during the year generated revenues of $60.3 million, which Gemfields called “tolerable” given the financial and regulatory oversight challenges facing Indian customers.
Higher-quality emerald auctions held during the year yielded a slight increase in average per-carat price, achieving $65.55 compared with $63.63 per carat in the 12-month period ended June 2017.
The per-carat average for commercial-quality emeralds was flat, achieving $3.54 per carat on average in 2018 compared with $3.53 per carat in the year up to June 2017.
Gemfields also faces challenges in Ethiopia, where it was mining emeralds.
In July 2018, a mob overran its mining operations and a month later looted the site. Its 110-person team there has been reduced to a handful, the company said, as it works to find a way to restart bulk sampling.
In 2018, the mining area produced a total of 2.9 million carats of ruby and corundum.
Faberge, meanwhile, reported record revenues of $13.4 million in 2018 and saw triple-digit growth in online sales.
As a result, the four emerald auctions during the year generated revenues of $60.3 million, which Gemfields called “tolerable” given the financial and regulatory oversight challenges facing Indian customers.
Higher-quality emerald auctions held during the year yielded a slight increase in average per-carat price, achieving $65.55 compared with $63.63 per carat in the 12-month period ended June 2017.
The per-carat average for commercial-quality emeralds was flat, achieving $3.54 per carat on average in 2018 compared with $3.53 per carat in the year up to June 2017.
Gemfields also faces challenges in Ethiopia, where it was mining emeralds.
In July 2018, a mob overran its mining operations and a month later looted the site. Its 110-person team there has been reduced to a handful, the company said, as it works to find a way to restart bulk sampling.
RELATED CONTENT: Gemfields Opens $15M Automated Sort House in MozambiqueMeanwhile, Gemfields’ operations in Mozambique, where it mines ruby and corundum, generated revenues of $127.1 million from the two Montepuez auctions of mixed-quality rubies held during the year, with the June auction seeing record results of $71.8 million.
In 2018, the mining area produced a total of 2.9 million carats of ruby and corundum.
Faberge, meanwhile, reported record revenues of $13.4 million in 2018 and saw triple-digit growth in online sales.
More on Sourcing
The Latest
MajorsApr 30, 2026
Claire’s New Summer Campaign Is a Sensory Wonderland for Gen Alpha“A Girl SMR at Claire’s” celebrates girlhood through the five senses with stacked jewelry, slime toys, scented accessories, and ASMR.
AuctionsApr 30, 2026
Vintage Cartier Watch Crashes Through Records, Selling for $2MBelieved to be one of three made in 1987, the Cartier London Crash was hot at the “Shapes of Cartier” sale at Sotheby’s Hong Kong.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeApr 30, 2026
Masked Group Uses Hammers, Pepper Spray in Texas Jewelry Store RobberyOfficials are looking for a group that robbed Marc Robinson Jewelers at an outlet mall in Round Rock, Texas, in broad daylight on April 21.
Weekly QuizApr 23, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinApr 30, 2026
OROAREZZO 2026: The B2B Event for Italian Excellence in Goldsmith, Jewelry and Silver ManufacturingSponsored by OROAREZZO International Jewelry Exhibition
MajorsApr 29, 2026
The Thought Process Behind the Mother's Day Email Opt-OutSome retailers are taking a nuanced approach to marketing what can be a difficult holiday for many.
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.
IndependentsApr 29, 2026
Dick Abbott to Retire From The EdgeThe Edge has announced its new CEO, as well as a new partnership with an investment firm focused on founder-led software businesses.
AuctionsApr 29, 2026
This'll Be the Day You Own John Wayne's RingA signet ring belonging to the Western film star of Hollywood’s Golden Age will be up for auction at Elmwood’s next month.
Policies & IssuesApr 28, 2026
Tariff Refunds: How to File, What to Expect Importers can submit claims now to receive money back for the IEEPA tariffs they’ve paid, with refunds expected to take up to 90 days.
IndependentsApr 28, 2026
This North Carolina Jeweler Is Passing the TorchThe owners of Gregory Jewelers in Morganton, North Carolina, are heading into retirement.
SourcingApr 28, 2026
NDC Hires Tapestry Exec to Head Global Marketing Susie Dewey joins the Natural Diamond Council as its new chief marketing officer.
AuctionsApr 27, 2026
12 Years Later, the ‘Ocean Dream’ Diamond Resurfaces at Christie’sThe largest known fancy vivid blue-green diamond could fetch more than $12 million at its second auction appearance.
ColumnistsApr 27, 2026
Stop Treating Mother’s Day Like an AfterthoughtEmmanuel Raheb says jewelers need to start marketing early and make it easy for customers to pick a gift for mom.
IndependentsApr 27, 2026
Longnecker Jewelry Celebrates 30 YearsIn honor of the milestone, the Nebraska jeweler has debuted Leslie & Co., its new in-house jewelry brand.
MajorsApr 27, 2026
JBT Re-Elects Jeff Corey as Board ChairThe trade organization, which held its annual elections earlier this year, also added five new board members.
SurveysApr 24, 2026
Mother’s Day 2026 Jewelry Spending to Top $7B, NRF SaysNRF’s annual survey found that 45 percent of consumers plan to purchase jewelry for a loved one this Mother’s Day.
TechnologyApr 24, 2026
TwentyFour’s Digital-Age Locket Is a Virtual VaultThe “Vault” charm, our Piece of the Week, expands on the memories that can be stored in a locket by connecting to your phone.
Events & AwardsApr 24, 2026
Hamptons Jewelry Show to Return in JulyThe open-to-the-public luxury jewelry and timepiece show, in its second year, is slated for July 23-26.
IndependentsApr 23, 2026
Meet the Real Moms of Day’s JewelersThe jeweler’s Mother’s Day campaign highlights the women who work there—mothers, grandmothers, women who want to be mothers, and dog moms.
Supplier BulletinApr 23, 2026
JM® Shipping Solution: Smarter Shipping for High-Value GoodsSponsored by Jewelers Mutual
Lab-GrownApr 23, 2026
Charles & Colvard May Sell Assets for $1.5MThe proposed agreement follows the moissanite maker’s Chapter 11 bankruptcy protection filing last month.
AuctionsApr 23, 2026
John Jacob Astor IV’s Titanic Pocket Watch Fetches $1MThe Patek Philippe for Tiffany & Co. timepiece Astor brought aboard the ill-fated ship sold for double its estimate at a Freeman’s auction.
CollectionsApr 23, 2026
Adam Neeley’s High Jewelry Collection Steps Into Salvador Dalí’s GardenThe “Dalí’s Garden” collection was inspired by a surreal dream Neeley had after cooking a recipe from Salvador Dalí’s 1973 cookbook.
IndependentsApr 23, 2026
Windsor Jewelers Names New Buying DirectorNatalie Feanny has been appointed to the role.
CrimeApr 22, 2026
New Mexico Couple Pleads Guilty to Selling Fake Native American JewelryThe pair falsely claimed their jewelry was made by Navajo artists, but it was imported from Vietnam.
