Amid a difficult year, gemstone miner Gemfields has reported that the operational interruptions at the company’s 75%-owned Montepuez Ruby Mining (MRM), in Mozambique, and at its Kagem emerald mine, in Zambia, weighed on the company’s output and cash generation for the year ended December 31.

In a trading statement, Gemfields CEO Sean Gilbertson says the delays to MRM’s second processing plant, PP2, combined with high levels of illegal mining and grade volatility, restricted premium ruby production and disrupted the company’s auction cadence.

While the plant has been producing rubies since September 2025, Gilbertson says the delay in the final commissioning of PP2 is expected to continue well into the first half of this year.

Additionally, he notes that auction outcomes during the year were mixed.

Gemfields held seven auctions, realising only $129-million, with demand uneven and skewed away from lower‑quality, smaller‑size goods.

“While overall sentiment was fragile and volatility persisted, we have been encouraged by improved pricing throughout the year for high-quality emeralds and rubies,” says Gilbertson.

He adds that cash generation was constrained despite disciplined cost control and a strong safety performance.

Moreover, the recent escalation of conflict in the Middle East adds further uncertainty to global energy markets.

While diesel prices remain volatile, Gilbertson says it is too early to quantify any potential cost impact on the company’s operations, noting, however, that Gemfields continues to monitor developments closely.

“Our priorities for 2026 are clear: stabilise operations, ramp PP2 up methodically to nameplate capacity, continue strict cost and capital discipline and restore a predictable auction cadence.

“The need to further strengthen our balance sheet means that deleveraging is the primary focus of our capital discipline in the short term, with a view to providing us with the opportunity to broaden our capital allocation options in the medium term.”

Gemfields expects to release its financial results for the year ended December 31 on March 26.

Gemfields expects to report a 69% year-on-year narrowing in its loss a share for the year to about $0.03.

Its headline loss a share is also expected to narrow by 44.8% year-on-year to about $0.01.

The company’s weighted average shares in issue for the period was 1.48-billion.