AIM-listed mining company Gemfields posted a decline in revenues for the half year ended December 31st, which pushed net profit after tax for the period firmly lower.

The group, which blamed the decline on fewer auctions occurring during the period, delivered a pre-tax profit of $9.4m (2011: $31.1m) on revenues of $27.7m compared to $45.7m the same period in 2011. Earnings per share totalled $0.01, down from $0.05.

The total cost of sales remained stable at $9.6m, just below the $9.8m spent the previous year.

Ian Harebottle, the Chief Executive Officer of Gemfields, said: "The past six months has been a very busy period for Gemfields. While the timing of our auctions this year has seen lower H1 revenue, the three auctions lined up for the second half are expected to balance out the financial year revenues. On an operational level we have managed to deliver increased carat production, lowered unit costs and continued our strong safety record.

"We have expanded our footprint substantively with the commencement of the ruby bulk sampling operation in Mozambique, ensured that all of our core projects are well capitalised as and where required, continued to retain healthy cash and stock balances and have finalised the acquisition of Fabergé."

Cash and equivalents at the period end fell from $32.4m to $27.9m year-on-year.

NR

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