Gemfields and Petra hit by Indian notes ban

The Indian prime minister’s surprise move to scrap higher-value banknotes has hit trading at Petra Diamonds and Gemfields, the miners revealed today.

Narendra Modi abolished 500 and 1000 rupee banknotes in November as part of a crackdown on corruption.

Gemfields, which counts Oscar-nominated actress Ruth Negga as a fan, said it had to delay an emerald auction to allow Indian customers to adjust, as well as cancel another event entirely.

Revenues and profits will fall this year as a result, the firm said as it posted a $4.3 million (£3.5 million) loss for the six months to December 31. Sales fell to $51 million from $94 million.

Petra, which saw five employees die in its mines last year, added there has been pressure in the smaller rough diamonds market owing to the Indian government’s decision. But sales still grew 48% to $228.5 million.

Gemfields’ shares dropped more than 3p to 47.39p, and Petra’s decreased 4.11p to 144.29p.