Gemfields Saw $60M Loss in 2018

RAPAPORT... Gemfields slid into the red in 2018 due to the impact of a new tax regime and a costly legal case, it said Monday.The company reported a loss of $60.4 million for the year, compared with a profit of $45.1 million the previous year. In 2018, the Zambian government introduced a 15% tax levy that required Gemfields to have its Kagem emerald mine revalued. This contributed to a $26.6 million devaluation charge, which included an inventory impairment charge of $2.6 million.Gemfields also paid GBP 5.8 million ($7.7 million) to lawfirm Leigh Day in a no-admission-of-liability settlement regarding ahuman-rights-abuse case brought against the company. Excluding all those charges,as well as other tax-related costs, the company's profit for the year was $18million, it noted. Revenue for the year more than doubled to $206.1 million,compared with $81.7 million in 2017. Proceeds included ruby sales of $127.1 million,and $60.3 million from emerald auctions. Image: The 5,655-carat Lion Emerald from the Kagem mine, which was recovered in October 2018. (Gemfields)