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Gemfields books $125.2M impairment after Montepuez ruby grades disappoint
The company expects a $73.5 million loss for the six months to June, citing lower-than-expected premium ruby recoveries at its Mozambique mine.
Gemfields said it expects to report a $73.5 million loss for the six months to June, after taking a $125.2 million impairment against its Montepuez ruby mine in Mozambique.
Mining.com reports the impairment followed the company recovering fewer high-quality rubies than expected, and Gemfields also raised an impairment for the mine in its 2025 financial year from $35 million to $65 million after identifying an additional $30 million adjustment, with more detail due alongside interim results on September 30.
Gemfields said ruby recoveries were lower than expected during the first half, although it noted recent improvement, and it attributed the challenging period to lower-than-expected premium ruby recoveries at Montepuez, which it said significantly impacted group financial performance.
The writedown increases pressure on Gemfields to improve output at Montepuez, one of the world’s most significant ruby deposits, as management works to determine the cause of weaker grades and improve mine planning.