(Alliance News) - Gemfields Group Ltd on Friday declared a first-ever dividend in 2021, with its operations "firing on all cylinders" again and the coloured gemstone market remaining buoyant.
The London-headquartered gemstones supplier's pretax profit swung to USD104.4 million in 2021 from a loss of USD99.2 million in 2020, while net profit grew to USD65.0 million, from a loss of USD93.2 million.
The return to profit in 2021 came after record-breaking gemstone auctions, which saw full-year revenue multiply to USD257.7 million from USD34.6 million.
Gemfields declared a maiden dividend of 1.7 US cents, thanks to the buoyant coloured gemstone market.
Chief Executive Sean Gilbertson said 2021 was an "annus mirabilis" for the group, with the company robustly putting the challenges of 2020 well behind it.
"With the group's operations now firing on all cylinders again, complemented by the buoyant conditions in the coloured gemstone market, we are well-positioned as the world's leading supplier of responsibly sourced coloured gemstones," Gilbertson said.
The group generated a record USD118.1 million in free cash flow, which was bolstered by lower than-average operating costs in the first quarter of the year due to the suspension of its mining operations and the temporary cutback in corporate costs.
Gilbertson said the company continued to see healthy demand for its products and was optimistic about 2022.
Shares in Gemfields were up 1.1% at 17.70 pence on Friday morning in London, while its Johannesburg shares were untraded at ZAR3.60.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Gemfields Grou. (GEM)