Gemfields 2025 loss outlook: Montepuez and Kagem constraints explained for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Gemfields expects a 2025 loss per share of 2.6¢, narrowed from 7¢ in 2024, as weaker gemstone prices, illegal mining and grade volatility hit the Montepuez ruby mine in Mozambique and the Kagem emerald mine in Zambia, cutting output and cash flow. Commissioning of Montepuez’s second processing plant, already producing rubies since September 2025, is now delayed well into H1 2026, constraining volume recovery and auction scheduling. Seven gemstone auctions raised $129 million in 2025, down 34% from $195.9 million, despite firmer prices for top-tier emeralds and rubies.
Technical Brief
- Montepuez’s second processing plant has technically produced rubies since September 2025 but remains under commissioning.
- Management explicitly links commissioning delays to constrained premium ruby output and disrupted auction scheduling.
- Loss per share guidance is 2.6¢ for 2025, with headline loss per share at 1.3¢.
- Seven gemstone auctions in 2025 generated $129 million, versus $195.9 million from seven auctions in 2024.
- Gemfields’ market capitalisation sits around ZAR 2 billion (~$117.4 million) after a 20% share price fall in 12 months.
- Balance sheet repair includes a $30 million rights offer and a $50 million disposal of the Fabergé brand.
- Escalating Middle East conflict is flagged as a specific energy-cost risk driver, though cost impacts are not yet quantified.
Our Take
In our database of 1104 Mining stories, Gemfields is one of the few coloured-gemstone producers with repeated coverage of auction price weakness, which suggests its earnings are more exposed to discretionary luxury demand cycles than the bulk commodity names it is mentioned alongside, such as BHP’s Jansen potash project.
The related January 30 piece on Gemfields’ 34% auction revenue drop indicates that the 2025 guidance still assumes no rapid rebound in emerald and ruby pricing, so the planned $30 million rights offer and $50 million Fabergé sale look geared to balance-sheet resilience rather than funding aggressive new mine expansion at Montepuez or Kagem.
With a market capitalisation of about $117.4 million versus $129 million in 2025 auction revenue, Gemfields is trading closer to a revenue multiple typical of marginal gold juniors like Liberty Gold and Heliostar Metals in our coverage, underlining how sustained gemstone price pressure has pulled it away from the valuation levels of more stable luxury or diamond peers.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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