Gemfields Faces Increased Tax Burden as Zambia Reinstates Export Duty on Emeralds

The latest announcement is out from Gemfields Group ( (PLLHF) ).

Gemfields Group Limited has announced that the Zambian government has reinstated a 15% export duty on emeralds, effective January 1, 2025, impacting the Kagem emerald mine, which Gemfields partially owns. This duty, combined with existing taxes, raises the effective tax rate on revenues to 21%, causing concerns about the sustainability and attractiveness of investments in the Zambian emerald sector. Gemfields plans to engage with the government to seek a reversal of this duty, emphasizing the lack of prior consultation on the decision.

More about Gemfields Group

Gemfields is a leading global miner and marketer of colored gemstones, operating the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique. The company also owns Fabergé, a prestigious brand, enhancing consumer awareness of colored gemstones. Gemfields employs a proprietary grading system and auction platform to ensure a consistent supply to markets, contributing significantly to the global gemstone sector.

YTD Price Performance: -7.00%

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Current Market Cap: $112.3M

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