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Gemfiields, the London-listed gemstone miner, has signalled a period of transition and recovery following a challenging financial year defined by operational interruptions at its primary assets in Mozambique and Zambia. In a trading update ahead of its full-year results, the group revealed that delays at the Montepuez Ruby Mining (MRM) operation and grade volatility at the Kagem emerald mine have weighed heavily on output and cash generation for the year ended 31 December.
The company has been particularly impacted by the delayed commissioning of the second processing plant, known as PP2, at its MRM site. While the facility began producing rubies in September 2025, the final commissioning phase is now expected to stretch well into the first half of 2026. This bottleneck, coupled with persistent challenges from illegal mining activities and inconsistent ore grades, has restricted the production of premium-quality rubies and forced a shift in the group’s traditional auction schedule.
Market conditions proved equally complex over the past twelve months. Gemfields conducted seven auctions during the period, yielding total proceeds of $129 million. However, demand remained uneven, with buyers showing a clear preference for high-quality stones while shunning lower-quality, smaller-sized goods. Despite the fragile market sentiment, the group noted a silver lining in the improved pricing achieved for top-tier emeralds and rubies, which provided some cushion against the broader volatility.
Looking ahead, the group is contending with new macroeconomic uncertainties, specifically the escalation of conflict in the Middle East and its subsequent effect on global energy markets. Although diesel prices remain volatile, the company stated it is currently too early to quantify the precise impact on operating costs. In response to these pressures, management has pivoted toward a strategy of deleveraging to bolster the balance sheet and provide greater capital allocation flexibility in the medium term.
The miner expects to report a significant narrowing of its financial losses when it releases its formal results on 26 March. The loss per share is anticipated to shrink by 69% year-on-year to approximately $0.03, while the headline loss per share is forecast to narrow by 44.8% to $0.01. With a weighted average of 1.48 billion shares in issue, the focus for the current year remains firmly on operational stability and the methodical ramp-up of the PP2 facility to its full nameplate capacity.
Reflecting on the group’s strategic direction for the coming year, Gemfields Chief Executive Sean Gilbertson emphasised the necessity of internal discipline during a period of global instability.
“Our priorities for 2026 are clear: stabilise operations, ramp PP2 up methodically to nameplate capacity, continue strict cost and capital discipline and restore a predictable auction cadence.”
