WatchesNov 05, 2025
Shinola President Steps Down Just as He Starts Former Signet CEO Mark Light will remain president of Shinola until a replacement for Ulrich Wohn is found.
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.
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
AuctionsNov 05, 2025
Taylor Swift’s Engagement Ring Designer Makes Her Auction DebutKindred Lubeck of Artifex has three rings she designed with Anup Jogani in Sotheby’s upcoming Gem Drop sale.
FinancialsNov 05, 2025
Pandora Posts Modest Q3 Sales Growth Amid ‘Weak’ Consumer Sentiment The company focused on marketing in the third quarter and introduced two new charm collections, “Pandora Talisman” and “Pandora Minis.”
Brought to you by
Jewelers of America Aligns New Mission to Create Meaningful Impact for MembersFrom educational programs, advocacy, and recent MJSA affiliation, Jewelers of America drives progress that elevates businesses of all sizes.
FinancialsNov 05, 2025
Brilliant Earth’s Q3 Sales Climb 10%The jewelry retailer raised its full-year guidance, with CFO Jeff Kuo describing the company as “very well positioned” for the holidays.
Weekly QuizOct 30, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Policies & IssuesNov 04, 2025
Supreme Court to Hear Tariffs Case WednesdayAhead of the hearing, two industry organizations co-signed an amicus brief urging the court to declare Trump’s tariffs unlawful.
MajorsNov 04, 2025
Danny Clark to Become Stuller CEO, Succeeding Matt StullerStuller COO Belit Myers will take on the additional role of president, with all changes effective at the start of 2026.
ColumnistsNov 04, 2025
Peter Smith: What Do Birds Have to Do With the Price of Gold? Smith cautions retailers against expending too much energy on things they can’t control, like the rising price of gold.
TrendsNov 04, 2025
Amanda’s Style File: Fall Colors for November BirthdaysCitrine and topaz are birthstones fit for fall as the leaves change color and the holiday season approaches.
IndependentsNov 04, 2025
Weston Jewelers Heads to Fort LauderdaleThe family-owned jeweler will open its fourth store in Florida in late 2027.
CrimeNov 03, 2025
Men Dressed as Construction Workers Burglarize Jeweler’s Home The NYPD is looking for three men who stole a safe and jewelry valued at $3.2 million from the home of a jeweler in Jamaica Hills, Queens.
MajorsNov 03, 2025
Matthew Rosenheim Takes Over as JA Board ChairThe trade organization also announced its executive committee and five new directors.
CollectionsNov 03, 2025
Muse’s ‘Have a Heart’ Collab Returns, Now With DDGThe “Have a Heart x Diamonds Do Good” collection is championed by model and humanitarian Flaviana Matata and will benefit her foundation.
AuctionsNov 03, 2025
Kashmir Sapphire Ring Tops Christie's Online AuctionThe ring, set with a nearly 17-carat Kashmir cabochon sapphire, sold for $1 million.
TrendsOct 31, 2025
Piece of the Week: A Spinner Fit for ‘Frankenstein’This “Mother Father” spinner necklace from Heavenly Vices Fine Jewelry draws inspiration from Victorian Era jewelry.
CrimeOct 31, 2025
5 More Arrested in Louvre Heist, Jewelry Still Missing The suspects were rounded up in Paris and its suburbs on Wednesday night, but none of the stolen jewels were recovered with them.
Recorded WebinarsOct 31, 2025
Watch: How to Master Google Reviews for Your BusinessExperts share top tips on how to encourage positive reviews and handle negative feedback.
Supplier BulletinOct 30, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
CrimeOct 30, 2025
29-Year-Old Man Charged in Multiple Seattle-Area Smash and Grabs The suspect faces charges in the August robbery of Menashe & Sons Jewelers and is accused of committing smash and grabs at two pawn shops.
Lab-GrownOct 30, 2025
Alison Lou’s New Collection Uses Lab-Grown Diamonds and ResinThe “Lumière Fine” collection was born from designer Alison Chemla’s interest in the transformative power of light.
TrendsOct 30, 2025
Amanda’s Style File: A Haunted HalloweenShow off your spooky side with these 12 festive jewels.
Events & AwardsOct 30, 2025
Jewelers Mutual to Host Jewelry Panel at Frazier History MuseumThe “Brilliant & Beyond” panel coincides with the “Love & Marriage” exhibition curated by Davis Jewelers in Louisville, Kentucky.
Events & AwardsOct 29, 2025
October Brings Little Change to Consumer Confidence Consumers are feeling more optimistic about their present situation while the short-term future remains a little scary.
Events & AwardsOct 29, 2025
Couture Partners With Time to WatchesThe company, which organizes a watch show in Geneva every spring, will bring a selection of watch brands to the 2026 Couture show in Vegas.
TrendsOct 29, 2025
Beth Bernstein Releases Vintage Jewelry Guide“The Modern Guide to Vintage Jewellery” follows the evolution of jewelry design from the ‘30s to the ‘80s with buying and styling advice.
EditorsOct 29, 2025
Why Creepy, Crawly Bugs Inspire Beautiful JewelryFor her annual Halloween story, Senior Editor Lenore Fedow explores the symbolism behind spiders, beetles, and other eerie insects.
