Gemfields announced that Chief Executive Officer Sean Gilbertson will step down from his position and leave the Board of Directors by mutual agreement, effective July 15. Chief Financial Officer David Lovett will assume interim leadership of the company, while non-executive Chairman Bruce Cleaver will provide additional oversight of management until a permanent successor is selected, the Engineering News website reported on Tuesday, June 30.
According to the website, the company, which is listed on the Johannesburg and London stock exchanges, stated that “the board will initiate a formal process to select a new CEO in due course, noting that the interim arrangement ensures continuity of leadership and a focus on operational and strategic priorities.”
Despite the management change, Gemfields announced that its first “Trade Select” ruby auction, held from June 22 to 29, generated revenue of $23.1 million, following the sale of 82 of the 89 lots offered, representing 93.2% of the stones made available.
The company’s Director of Product and Sales, Adrian Banks, considered the result encouraging, stating that the new format allowed the company to better respond to market demand and broaden buyer participation, despite the current difficulties faced by the colored gemstone sector.
Production at the Montepuez mine affected by a decline in ruby quality
Gemfields revealed, however, that its subsidiary Montepuez Ruby Mining (MRM), in which it holds a 75% stake, continues to face a decline in high-quality ruby production due to falling ore grades.
According to the company, premium rubies account for more than 70% of MRM’s revenue, although they represent less than 5% of the volume produced. The average grade of these stones fell from 0.06 carats per metric ton in 2025 to 0.03 carats per metric ton in the first five months of this year.
The situation was exacerbated by heavy rains in the first quarter, which limited access to the most productive areas of the concession, and by start-up issues at the second processing plant (PP2), which is scheduled for completion in the third quarter of this year.
The company acknowledges that “these factors will have a negative impact on the availability of rubies for upcoming auctions” and states that it “will intensify exploration efforts in areas with greater potential, while maintaining the cost-control measures initiated in 2024.”
Security, illegal mining, and VAT refunds exacerbate financial pressure
Gemfields also noted that the security situation around the mine continues to be a cause for concern. Between late April and May, several villages located between 15 and 35 kilometers from the concession were attacked by armed groups, forcing the company to temporarily suspend operations for about 20 hours.
Although conditions have improved and operations have returned to relative normalcy, the company reports that approximately 700 illegal miners enter the concession daily, a situation that poses risks to workers, communities, and the conservation of mineral resources.
The company adds that MRM also continues to face cash flow difficulties due to delays in Value-Added Tax (VAT) refunds, with outstanding credits totaling $28.3 million as of June 30. According to Gemfields, “the combination of declining ruby quality, operational challenges at the new factory, insecurity, illegal mining, and delays in tax refunds is expected to negatively impact production, stone quality, and cash flow at the Mozambique operation.”
