Gemfields Group (JSE:GML) Full Year 2023 Results

Key Financial Results

• Revenue: US$262.0m (down 23% from FY 2022).

• Net loss: US$10.1m (down by 118% from US$56.8m profit in FY 2022).

• US$0.008 loss per share (down from US$0.048 profit in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Gemfields Group Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) missed analyst estimates by 158%.

The primary driver behind last 12 months revenue was the MRM segment contributing a total revenue of US$151.4m (58% of total revenue). Notably, cost of sales worth US$160.7m amounted to 61% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$58.7m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how GML's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Metals and Mining industry in South Africa.

Performance of the South African Metals and Mining industry.

The company's shares are down 4.9% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Gemfields Group, and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.