Precious gemstones miner Gemfields (LON: GEM) warned on Friday that it expects to swing to a loss of $2.8 million in 2023 from a $74.3 million profit the previous year due to a write-down in its platinum group metals investments, lower output and the cancellation of an emerald auction.
The London-based company, which has a 6.54% stake in South African platinum group miner Sedibelo Resources, said that plummeting prices for platinum group metals (PGMs) has affected its bottom line.
Since the beginning of 2023, prices for palladium and rhodium, used mainly in the catalytic converters that clean exhaust fumes in vehicles, have dropped by 44% and 63% respectively. This collapse is attributed to inventory reductions and a sluggish global economy.
While the decrease in platinum has been less significant, the overall decline in PGMs has had a severe impact on producers’ profits.
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