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(Alliance News) - Gemfields Group Ltd expects to turn profit in 2021 as a result of record-breaking gemstone auctions last year, underpinning a recovery from Covid-19.
The London-headquartered gemstones supplier said on Tuesday it expects earnings per share to be 4.0 US cents in 2021, swinging from a loss of 7.0 cents in the prior year. In 2019, earnings stood at USD2.0 cents per share.
In rand terms, the earnings per share are expected to be 0.64 rand cents, compared to a loss of 1.20 cents. Earnings remained at 0.32 cents in 2019.
In its annual earnings guidance, Gemfields said net profit after tax will grow to USD65.0 million, swinging from a loss of USD93.2 million. In rand terms, the net profit after tax is expected to rise to ZAR961 million, from a ZAR1.53 billion loss.
Gemfields' two key operating assets, Montepuez Ruby Mining Limitada and Kagem Mining Ltd, saw record-breaking auction results in 2021, generating revenues of USD147.4 million and USD91.8 million respectively.
The company's 2020 auction schedule was severely hampered by the many travel, quarantine and congregating restrictions put in place internationally to mitigate Covid-19 contagion.
Gemfields had to adapt and find alternative ways of hosting gemstone auctions. After the success of its inaugural series of smaller, multi-city, online-based auctions for high-quality emeralds in November and December 2020, it continued with the same format for its auctions of emeralds and rubies in 2021.
Shares in Gemfields were up 8.6% at 17.10 pence on Tuesday morning in London, while its Johannesburg shares were 8.5% higher at ZAR3.45.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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