Gemfields Group Limited

Group revenue was $135 million, down from $199 million in 2024. EBITDA was $6.25 million, adjusted EPS was negative $0.013, and free cash outflow was $29 million. Operating expenses were down approximately 17% to $129 million, while year-end net debt was $39 million, or $18.7 million to $19 million including auction receivables. Kagem generated $78 million of auction revenue in 2025, while MRM generated $50 million. For 2026, management expects a Kagem auction in May and a ruby auction in Q3, with PP2 final commissioning now expected in Q3 2026.

Sean Gilbertson framed 2025 as an exceptionally difficult year, citing weak auction revenues, disruption in Mozambique, the Zambia export-duty shock, lower-grade ruby mix at MRM, and broader geopolitical and tariff turbulence. Even so, he said Gemfields is in a “markedly better” position than 12 months ago, pointing to the $30 million rights issue, the $50 million Fabergé sale, and a stronger operating base heading into 2026. His tone was candid and defensive about the many setbacks, but also constructive on the company’s ability to recover.

David Lovett emphasized that 2025 results were hit by the delayed year-end ruby auction and weaker ruby production, but said the actions taken during the year materially strengthened the group’s footing for 2026. He cited group revenue of $135 million, operating expenses down about 17% to $129 million, EBITDA of $6.25 million, and free cash outflow of $29 million. He also highlighted gross cash of $64 million, gross debt of $103 million, and net debt of $39 million, noting that PP2’s heavy investment is now behind the company and cash should improve as the plant stabilizes.

In Q&A, management said Nairoto has been shut down and is not expected to come back into business, while Sedibelo remains an option only if there is a credible inquiry, with both assets described as written down to zero. On fuel, Sean said Gemfields is critically dependent on diesel, especially at MRM, and that there are already signs of tighter supply and higher prices in Zambia; the company is considering mitigations such as extra storage tanks. Management said fuel and the Middle East conflict could affect operating costs and auction flexibility, and that it will balance production with market conditions.