Gemfields confident on growth in demand after strong results

 
Caitlin Morrison
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In February 2013, Hollywood actress Mila Kunis was announced as Gemfields’ brand ambassador
Pre-tax profits at mining firm Gemfields more than trebled between the first half of the 2014 financial year and the six months to 31 December 2014, jumping from $7.8m (£5.2m) to $43.5m.

The London Aim-listed company’s revenue also grew, from $65.7m to $103m.

Gemfields, which defines itself as a luxury miner, saw growth in production of rubies and emeralds during the period, and said that a steady increase in demand for coloured gemstones is “set to continue for the foreseeable future.

Ian Harebottle, Gemfields chief executive, said the group had put in a solid performance “at a time when the mining sector has faced various challenges”, and described the company as “one of the few shining lights in the market”.

He said the firm, which acquired the Faberge brand in January 2013, will hold two ruby auctions later in the year, and will continue to focus on acquisitions and expansions.

Harebottle told City A.M.: “What de Beers did for diamonds, we want to do for coloured stones. They created demand through marketing, we can follow that.”

Shares in Gemfields fell 0.5 per cent yesterday to 50.25p.

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