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Gemfields Secures Loans After $100M Loss in 2024 Amid Market Downturn

Weakened demand, asset impairments, and stalled mine operations force gemstone miner to borrow $13.4M and seek $30M in new equity

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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.”

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International News

Gold continues upward march;Bank of America forecasts  $5,000/oz for 2026

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Gold prices in India saw a modest rise on Wednesday today Oct 15, mirroring an uptick in international markets as renewed US-China trade tensions and expectations of further US interest rate cuts bolstered demand for safe-haven assets.24k gold traded at Rs.1,28,360/10gm after gaining ₹10 in early trade, while silver prices increased by Rs.100 to Rs.1,89,100 per kilogram.

Gold prices surged to a record high of $4,179.48 per ounce on October 14, 2025.  Investors flocked to safe-haven metals amid trade tensions and Fed rate-cut expectations. U.S. December gold futures jumped 57% year-to-date.  Bank of America raised its 2026 gold forecast to $5,000 per ounce, warning of possible near-term corrections.

Gold prices soared to an unprecedented $4,179.48 per ounce on October 14, 2025, marking a historic milestone for the yellow metal. The rally comes as investors worldwide seek safety in hard assets amid a turbulent global economic backdrop marked by escalating trade tensions, slowing growth, and expectations of further interest rate cuts by the U.S. Federal Reserve.

The sharp surge in bullion prices has been driven by a combination of macroeconomic uncertainty and aggressive monetary easing. As inflation pressures remain sticky and central banks pivot toward dovish policies, gold has reasserted its role as a hedge against both currency debasement and market volatility.

In futures trading, U.S. December gold contracts have skyrocketed nearly 57% so far this year, underscoring the strength of investor demand across both institutional and retail segments. Analysts note that central bank buying—particularly from emerging markets—has added further momentum to the rally, with several countries diversifying reserves away from the U.S. dollar.

Reflecting this bullish sentiment, Bank of America has raised its 2026 gold price forecast to $5,000 per ounce, citing continued monetary easing, geopolitical instability, and robust central bank accumulation. However, the bank also cautioned that short-term corrections are likely, given the rapid pace of the recent run-up and potential bouts of profit-taking.

Overall, gold’s meteoric rise underscores a broader shift toward safe-haven assets, as investors navigate a world increasingly defined by economic fragmentation, shifting interest rate cycles, and persistent geopolitical risks.

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