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(Alliance News) - Gemfields Group Ltd said on Thursday it expects interim profit to tumbled by over two thirds on the back of sharply lower top-line growth.
The London-headquartered gemstones supplier guided for net profit after tax of USD18.1 million for the six months that ended June 30, down 68% from USD56.7 million. In rand terms, the net profit after tax is expected to plunge by 61% to ZAR334 million from ZAR864 million.
Over this period, earnings per share is seen plummeting to 0.8 US cents from 3.7 cents. EPS slumped to 14.9 rand cents from 57.1 cents.
Headline EPS is likely to tumbled to 0.8 US cents from 3.7 cents. HEPS in rand terms is estimated at 14.9 cents from 57.1 cents.
In London, Gemfields shares shed 11% to 13.08 pence on Thursday morning. They slumped 8.7% in Johannesburg to ZAR3.17.
Gemfields said its two key operating assets, Kagem emerald mine in Zambia and Montepuez Ruby Mining Limitada, generated revenues of USD64.6 million and USD80.4 million, respectively in the first half, compared to USD85.2 million and USD95.6 million.
Luxury brand Faberge, a Gemfields subsidiary, recorded revenue of USD8.4 million, down 12% from USD9.5 million, due to a softer luxury market.
The gemstones supplier said a review of its shareholding in Sedibelo Resources Ltd had resulted in a fair value write down of USD13.3 million to USD18.7 million, reflecting the reduced public market valuations.
Gemfields expects to release its interim financial results on Friday next week.
By Artwell Dlamini, Alliance News reporter
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