EarningsQ2 2026 Earnings Report
DE:5PH Q2 2026 EPS Results
Actual EPS-€0.04
Consensus EPS―
Beat/Miss―
One Year Ago EPS-€0.02
DE:5PH Q2 2026 Revenue Results
Actual Revenue€94.48M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+65.12%
Earnings Announcement Details
QuarterQ2 2026
Date09/30/2026
TimeBefore Open
Conference CallWednesday, September 30, 2026
DE:5PH Upcoming Earnings
Gemfields Group's next earnings date is estimated for March 31, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:5PH Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Negative
The call included meaningful positives, including strong Kagem production, improved PP2 throughput, positive auction demand, $40.7 million of EBITDA, $17.4 million of free cash inflow and some progress on VAT refunds. However, the overall tone was cautious and predominantly negative because of the reported loss, the $125.2 million MRM impairment, the 13% decline in premium ruby production despite a 133% increase in ore produced, ongoing grade and recovery uncertainty, cash and debt constraints, unpaid MRM fees, illegal mining and the need for further operational stabilization and potential investment.Company Guidance
Strong First-Half Revenue and EBITDA
The group generated $106 million of revenue in the six months ended June 30, 2026, including $53 million from MRM's February 2026 auction and $23 million from MRM's first Trade Select auction. EBITDA was $40.7 million, reflecting strong year-to-date auction results.
Promising Auction Results and Gemstone Demand
First-half auction results were described as promising, showing continued strong underlying demand for high-quality colored gemstones. MRM's Trade Select auctions are intended to offer a broader mix of ruby qualities and newly introduced sapphire categories.
Positive Adjusted Earnings and Free Cash Flow
Adjusted earnings per share showed a gain of $0.06 per share, excluding the noncash MRM impairment charge. Free cash inflow was $17.4 million in the first half, primarily due to auction timing.
Improved Net Debt Position Including Auction Receivables
Gemfields closed June 30 with net debt of $44 million, broadly in line with the end of 2025. Including auction receivables, net debt improved to $10.6 million, the lowest position since June 2024.
Revenue Already Secured for the Second Half
The company had already secured almost $30 million of revenue from the September commercial-quality emerald auction, with a high-quality emerald auction and two ruby auctions still planned before year-end.
Strong Kagem Production
Kagem's production was strong, supported by good premium emerald recoveries and a higher-quality emerald auction. Premium emerald production to August was approximately 125,000 carats, ahead of comparable points in most prior years, while total emerald production was approximately 7.8 million carats, ahead of every prior year shown.
Positive Kagem Auction Contribution
Kagem contributed just under $27 million to first-half revenue from its higher-quality emerald auction held in May.
PP2 Processing Performance Improved
PP2 performance improved materially from mid-June. After typically running between 300 and 390 tonnes per hour with considerable day-to-day volatility earlier in the year, the plant subsequently ran more consistently between 410 and 450 tonnes per hour, above the 400 tonnes-per-hour target.
Higher MRM Throughput and Total Carat Production
Total throughput across MRM's two plants, including PP1, approximately tripled from around 100,000 tonnes to around 300,000 tonnes, while total carat production approximately doubled.
Recent Improvement in MRM Operating Stability
July, August and September were described as healthier months for MRM. Management reported improved processing stability, a more systematic approach to mine management, and a focus on directing production toward areas with better-understood grades.
PP2 Long-Term Processing Rate
PP2 was running consistently above 400 tonnes per hour at the time of the call. Together with PP1, this equated to an annualized processing rate of approximately 3 million to 3.2 million tonnes.
Kagem VAT Refund Progress
Kagem received refunds from the Zambia Revenue Authority in 8 of the 9 months of 2026 to date, totaling around $5.4 million, described as almost double the year's requests.
Initial MRM VAT Refund Received
MRM received a $0.9 million cash VAT refund from the Mozambique Revenue Authority after the period end in August 2026, the first refund received since October 2024. A large portion of MRM's VAT receivable balance had also been approved by the VAT authority.
Clear Operational and Financial Priorities
Management identified operational stability, financial discipline and balance sheet resilience as the priorities for the remainder of 2026, including reliable production, tight cost control, selective capital spending, increased cash headroom and disciplined capital allocation.
Ongoing Mine Planning and Sampling Initiatives
At MRM, management is focusing on box sampling, production from proven grade areas, planning for seasonal pit constraints and improving PP2 availability and utilization. Management also plans to expand bulk sampling and use a different geological analysis approach to improve understanding of grade distributions and ruby recoveries.
Additional Auctions Planned
Three more auctions were planned for 2026, and management expected them to be broadly consistent with recent trends.
MRM Remains the Largest Ruby Producer
Management stated that there are currently no big ruby players operating in Mozambique and that MRM remains by far the biggest player, while noting that the emerald auction market has seen a significant uptick in activity over the last few years.
DE:5PH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed