Gemfields has turned its focus to paying off debt and strengthening its balance sheet as conflict in the Middle East looms over the energy market, threatening to extend the miner’s rough patch.
In a sober statement on Tuesday, Gemfields CEO Sean Gilbertson said it was too early to quantify the exact impact that the Iran war would have on his bottom line, but that diesel prices remained volatile.
“The recent escalation of conflict in the Middle East adds further uncertainty to global energy markets,” he said, adding that the group would continue to monitor developments closely.
The threat of rising fuel prices, a key driver of operating costs at Gemfield’s Zambian emerald and Mozambican ruby mines, comes at a vulnerable time for the company’s balance sheet.
In Mozambique, persistent illegal mining and civil unrest stemming from the country’s 2024 election have repeatedly disrupted operations at its Montepuez Ruby Mine.
Tight competition and a 15% export levy by Zambian authorities meant that its emerald operations were entirely suspended for nearly half of 2025, further dampening sales.
It has been a difficult year. The well-documented operational interruptions at both MRM and Kagem weighed on output and cash generation
— Sean Gilbertson, Gemfields CEO
In a bid to stem its losses, the company resorted to a $30m rights issue in April before selling its iconic subsidiary Fabergé for $50m in August.
Still, it expects its headline loss to narrow to 21.6c per share for the year ended in December, following a 39.1c loss in 2024.
Gilbertson cited persistent operational challenges, fragile market sentiment and mixed auction results for the losses. The group’s immediate priorities were to stabilise operations and continue “strict cost and capital discipline”.
“It has been a difficult year. The well-documented operational interruptions at both MRM and Kagem weighed on output and cash generation,” said Gilbertson.
“The need to further strengthen our balance sheet means that deleveraging is the primary focus of our capital discipline in the short term, with a view to providing us with the opportunity to broaden our capital allocation options in the medium term.”
Gemfields expects its annual loss to have narrowed by 69% year on year to 40c per share when it reports full-year results on Thursday.
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