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Gemfields is set to report a $73.5 million loss for the six months ending in June, following a $125.2 million impairment tied to its Montepuez ruby operation in Mozambique, where the company recovered fewer top-grade rubies than it had anticipated. The coloured gemstone producer, which trades in London and Johannesburg, also lifted an impairment on the mine booked in its 2025 financial year to $65 million from $35 million, after uncovering an additional $30 million adjustment.
The company gave no explanation for what drove that adjustment, saying only that fuller information would come with its interim results on September 30. Gemfields noted that ruby recoveries fell short of expectations in the first half, though there had been modest recent gains.
Interim chief executive David Lovett called the first half of 2026 a difficult stretch for the company, pointing to weaker-than-anticipated premium ruby recoveries at the Montepuez operation and the substantial effect on group financial performance.
The writedown heightens the significance of Gemfields' push to raise output at Montepuez, which it describes as one of the world's most important ruby deposits and a major contributor to company revenue. Management is trying to pin down what is behind the weaker grades while sharpening mine planning and operational reliability, as the company works to restore its balance sheet after two tough years.
Gemfields said the impairment mirrors a more cautious forecast for recovered grades, especially premium rubies, after lacklustre first-half production. Recent performance has shown tentative improvement, but the company said it needs more evidence before reaching firm conclusions.
Management is also watching PP2, the second processing plant at Montepuez. The facility has hit and occasionally surpassed its designed throughput, with final commissioning and optimization still under way. PP2 is meant to lift Montepuez's processing capacity to 600 tonnes per hour from 200 tonnes, a threefold increase, helping the mine work through stockpiles and giving it more flexibility to treat ore from various sections of its extensive licence area.
The project has encountered repeated obstacles. Completion slipped last year because of trouble securing work permits for specialist electrical work, transport issues that included damage to a key transformer, and security and operational disruptions linked to illegal mining. Additional commissioning difficulties surfaced once PP2 started operating in September 2025, among them excessive wear on certain components, equipment defects and blockages in parts of the plant. Gemfields said in June that these problems had hurt plant availability and operating consistency.
Montepuez brought in $76.1 million in revenue during the first half, almost double the $38.9 million posted a year earlier. Gemfields warned that the two periods are not directly comparable, since a mixed-quality ruby auction originally set for December 2025 was pushed back to February. Kagem, its emerald mine in Zambia, generated $26.7 million versus $21.1 million a year earlier. Gemfields said the operation did well and recovered good-quality premium emeralds, though operating costs stayed high.
Gemfields has been trimming costs and offloading assets to strengthen its finances after production interruptions held back output, auction frequency and cash generation. The company cut group operating costs by 17%, finished a $30-million rights offer and sold luxury jewellery brand Faberge for $50 million, as management put debt reduction and financial flexibility first.
Steady production and regular auctions have grown more critical as Gemfields looks to turn gemstone inventories into cash while covering operations and investment. A further risk sits beyond the gemstone market. Mounting geopolitical tensions in the Middle East have pushed up fuel costs and raised the prospect of supply problems for Gemfields' diesel-reliant operations in Mozambique and Zambia. The company has flagged a possible fuel pinch point and weighed steps such as extra storage and alternative supply arrangements.
For the moment, Montepuez remains the immediate challenge. Lovett said Gemfields' priority for the remainder of 2026 is to show that the recent upturn in ruby recoveries can hold while the company maintains financial discipline and flexibility.
Interactive table based on the Store Companies dataset for this report.
Report Scope and Analytical Framing
Market Size, Growth and Scenario Framing
How the Market Splits Into Decision-Relevant Buckets
Where Demand Comes From and How It Behaves
Supply Footprint, Trade and Value Capture
Trade Flows and External Dependence
Where Growth and Supply Concentrate
Commercial Entry and Scaling Priorities
Where the Best Expansion Logic Sits
Leading Players and Strategic Archetypes
Detailed View of the Most Important National Markets
Leading pearl and diamond integrated producer.
One of world's largest diamond miners.
Major retailer with vertical integration.
Major integrated jewelry retailer-producer.
Leading golden South Sea pearl producer.
Owns Kagem emerald & Montepuez ruby mines.
Controls famous Muzo emerald mines.
Operates several famous diamond mines.
Known for recovering exceptional diamonds.
Major diamond & gemstone manufacturer.
Vertically integrated gem & jewelry group.
Global diamond manufacturing leader.
Large Chinese freshwater pearl producer.
Central hub for freshwater pearl trade.
South Sea pearl farm in Cook Islands.
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Free Data: Cultured Pearls, Precious Or Semi-Precious Stones — Mozambique
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