Supplier of coloured gemstones, Gemfields, has said its teams are hosting and welcoming a notable increase in supply chain assessments, and audits, as jewellers and downstream customers strive to better understand and document their logistic networks.
Gemfields, which is focused on mining emeralds at the Kagem mine in Zambia and the Montepuez Ruby Mining (MRM) in Mozambique, has released its annual report yesterday.
The group said the coloured gemstone sector has long been opaque, and its focus on transparency means that it is uniquely positioned, as the industry rightly shifts to a “mine-of-origin” model and away from “country-of-origin”.
“The shift to greater transparency and supply chain certification will ultimately improve and strengthen the evolution of the sector,” it said.
According to the company, its board was aghast and saddened by the atrocities accompanying Russia’s large-scale military invasion of Ukraine.
“While the unrest and sanctions imposed on Russia will impact the group’s short-term energy and fuel costs in jurisdictions it operates, the overall risk and exposure to Gemfields is considered presently to be low,” Gemfields said.
Gemfields Group is based in London and listed on the Johannesburg and London Stock Exchanges, and its revenue in 2021 was $258 million, up from $35m in 2020.
The company said the financial statements in its annual report contained no modification from its audited annual results for the year ended December 31, 2021.
In results posted two weeks ago, the company reported an excellent set of results for 2021, rebounding well from the impact of Covid-19, which in the past had disrupted operations.
The group also reported high revenue cash flow generation, benefiting from the Covid-19 related demand. This record-high revenue and the high price per carat achieved during 2021, showed a positive development in both travel and product demand.
Gemfields chief executive Sean Gilbertson said: “The group’s results for 2021 underscore the positive step-change in both market demand for coloured gemstones and the prices bid by our clients, aided by the disruptions to gemstone supply caused by Covid-19".
In the annual report, Gemfields said in response to the Covid-19 pandemic, executive salaries had been frozen since 2018 and were reduced for eleven months to May 1, 2021.
“Unlike the group’s other employees, executive directors were not reimbursed for the salary reduction. Executive salaries have been increased effective January 1, 2022,” it said.
The group also announced Gilbertson's contract of employment is coming to an end in July 2022.
“The remuneration committee has resolved to enter into a new contract with the current CEO subject to agreement on terms and conditions of such employment,’ the group said.
Gemfields said Gilbertson's salary was increased by 3 percent to $592 250 per year, while David Lovett's as the chief financial officer was increased by 11.8 percent to $380 000.
“The committee sought to set salary levels for these executives at between the median and the upper quartile given its assessment of their experience, skills, and performance,” the group said.
BUSINESS REPORT ONLINE