Gemfields rakes in $196 million (R3.6 billion) in revenue from gemstone sales in 2024, the company said on Friday although it closed the period with a net debt position of $80.5m.

It said the net debt position was mainly a result of Gemfields continuing to fund the second processing plant at its Montepuez Ruby Mine (MRM) in Mozambique.

“Net debt position of $80.5m before auction receivables of $33.9m at December 31, 2024 as Gemfields continues to fund MRM’s second processing plant,” said the company.

The construction of the second MRM processing plant” remains materially on budget and on track for completion” this year.

This is despite the disruptions emanating from civil unrest that have rocked Mozambique in the past few months and extending into the first few weeks of 2025. The civil unrest followed the country’s bitterly contest presidential election held last year although a substantive new leader has now been inaugurated.

The unrest affected operations of various companies in Mozambique. However, for Gemfields, the company has been operating “as usual since the start of 2025” following the inauguration and “amid heightened illegal miner intrusions” in the wake of the civil unrest.

Gemfields; Kagem mine in Zambia “paused mining from the start of 2025” and is utilising its upgraded wash plant to process its existing stockpiles.

With Zambia introducing a 15% export tax on exports of gemstones, Gemfields stopped emerald exports since January 1, 2025. Kagem “anticipates that the duty may be revoked and allow a commercial-quality emerald auction to go ahead” in the first quarter of the current year.

The Zambian woes have been mounting for Gemfields. Last month, the company said a claim had been filed against Kagem by rival miner, Grizzly Mining Limited, its sister company Pridegems Mines Limited and proprietor Abdoulaye Ndiaye.

The claim relates to “alleged unlawful occupation” by Kagem of an area known as Kamakanga House as well as “conspiracy to injure business reputation” and goodwill.

BUSINESS REPORT