Gemfields has reported a deepening loss for 2024 as demand for gemstones weakened, prompting the company to seek financial support to sustain operations.

According to a trading update issued last week, the mining company anticipates a loss of $100.8 million for the year, a stark increase compared to the $2.8 million loss recorded in 2023. This larger deficit stems primarily from an impairment charge related to its Kagem emerald mine in Zambia, which remains temporarily closed. A slowdown in demand—exacerbated by intense competition and an oversupplied market—has also contributed to the downturn. Compounding the situation, production of high-quality rubies from the Montepuez deposit in Mozambique fell short of expectations, putting additional pressure on the company’s financial performance. Total revenue declined by 19% to $212.9 million.

“Market conditions through 2024 were more challenging than we could have anticipated,” stated Sean Gilbertson, CEO of Gemfields. “Revenues at both emerald and ruby auctions were materially lower than the group experienced in recent years.”

Operations at the Kagem mine remain suspended, with emerald production continuing only through the processing of previously stockpiled ore.

In response to the financial strain, Gemfields is seeking shareholder approval to issue more than 556 million new shares, with the aim of raising approximately $30 million to keep the business running. While the company had been working to sell certain assets—including its wholly owned luxury jewelry brand Fabergé—those efforts did not result in a timely sale. As a result, the miner has opted to borrow $13.4 million as an immediate injection of working capital.

“We…confirmed we would consider options outside of the group for our wholly owned luxury jeweler Fabergé as a means of addressing a forecast near-term working capital shortfall,” Gilbertson added. “This work did not yield the certainty of funds necessary within the desired time period.”