Gemfields posts after tax profits of $23.5 million for the year to the end of June - up from $12.3 million last time. Revenue rose to US$193.1 million (2015: US$171.4 million) and EBITDA increased to US$69.4 million from US$64.4 million. Chief executive Ian Harebottle said: "This financial year has seen Gemfields consolidate its position as an industry leader. The Company has achieved record operational progress which has translated into strong financial results for the Group, generating revenue of US$193.1 million, EBITDA of US$69.4 million and profit after tax of US$23.5 million. "In addition, US$64.1 million was generated in operating cash flow, an increase of 97% on the previous due to a rise in operating profit. Over the past five years, Gemfields revenue has increased 380% and total revenue generated since the Company's first auction in 2008 has reached US$717.6 million, an impressive achievement given the challenges faced by the mining and luxury goods industries. "Gemfields strategy is to grow production over time from two of its world class deposits, the Kagem emerald mine in Zambia and the Montepuez ruby operation in Mozambique, increasing consumer demand and achieving higher prices for its rough gemstones year on year. "Operationally Gemfields succeeded in its ambition of producing 30 million carats of rough emerald and beryl from Kagem, as guided, and 10.3 million carats of rough ruby and corundum from Montepuez, exceeding guidance. Global imports of emeralds, rubies and sapphires also reached US$5.9 billion in 2015, up from US$5.2 billion in 2014, demonstrating a 13% increase in consumer demand on the previous year. "The Company continues to see opportunities in new and existing markets for further price escalation. For the coming financial year Gemfields is targeting four emerald and beryl, two high and two commercial quality, auctions and two mixed quality ruby and corundum auctions. In addition, to meet the rising demand for coloured gemstones, the Company secured financing in the year to realise its expansion programme which will see higher production at both the Kagem and Montepuez operations over the next three years."
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