Gemfields Share Discussion Threads

[2cagey] 31/7/2015 12:00

To all you excited posters, have you given any thought to the fact that Gemstones are valuable because of the fact that they are rare. Gemfield's Ruby production is presently catering to a market void and the production targets outlined in the JORC announcement are huge and will in themselves if realized create a downward pressure on prices obtainable as saturation of the market by Gemfields itself occurs. Public company policies of never ending increases in production quantities are not the way to go with gemstones and close reading of Gemfields actual net profit leaves plenty of room to doubt that they would have the resources to withhold stock like DeBeers to uphold prices for any length of time. The company's announcements make big of the many millions in gross receipts from Auctions, however apart from the dividend that Kagem paid to Gemfields itself and the Zambian Government recently, dividends to shareholders seems to be far from the thoughts of the CEO. If you think that it can't or won't happen then take a look at what has happened to the Giants of Iron Ore as prices have collapsed from under their empires and the gemstone markets are much more fickle than that of base metals. In the meantime good luck to day traders sweating on the next exciting announcement.

[43rick] 31/7/2015 11:12

Looks as if someone is keen to build a stake in GEM - maybe buying about 800k at 65p on Tuesday, about 100k yesterday and 50k this morning - now buying at 68p. Not much on the ask on level 2. DYOR.

What is reassuring is that the peak is being scaled not so much with auction results in view, which always create buying before the news and selling after, but more IMO in response to that ruby JORC - minimum mine life 21 years - and the consequent significant raising of brokers' targets and tipsters comments.

Market update for the quarter to 30th June due about a week into August if the last two years' timetable is followed.
Production figures, unit operating costs, Faberge performance etc - see



for this time last year.

[goldminer70] 27/7/2015 22:02

The article by Questor was quite good but I couldn't understand why he was so pessimistic about this years expected profit.
He said "The lower ruby prices mean pre-tax profits are expected to fall from $36.1m (£23M) to $27.5M in the year to June"
Note $27.5m is £17.5m

According to my records Finncap estimate £33.63m profit,Investec £34.95m, Numis£33.83m profit, Panmure Gordon £27.78m profit, Peel Hunt £20.36m profit,
Average of 5 £32.26m i.e. Nearly double Questors

My guesses show
2013-14 1st Half £4.72m profit, £39.82m Revenue
2013-14 2nd Half £16.58m profit, £84.18m Revenue
2013-14 Total £21.3m profit, £94.00m Revenue

2014-15 1st Half £27.92m profit, £66.43m Revenue ~ Interim report
2014-15 2nd Half £25.00m profit, £126.00m Revenue ~ Last Year +50%
2014-15 Total £53m profit, £192m Revenue
i.e triple Questor and up 50% on the 5 brokers

Some will say my second half guesses are wildly optimistic but the Market Report Jan-Mar said production was up in emerald mining, ruby mining and Faberge Sales. We will get the market report for the quarter Apr-Jun in the next fortnight and the true full year results in September.
Goldminer 70

[43rick] 27/7/2015 20:10

Upgrade from Numis today from 80p to 90p.

[43rick] 26/7/2015 22:20

3 brokers raised their targets on 22nd July -

hxxp://sharedealing.nandp.co.uk/broker-views/GEM/Gemfields

The largest increase, as a result of that ruby JORC RNS on the 22nd, was Investec - 69.9p up to 90p

[philanderer] 24/7/2015 17:11

Link for Questor that rick mentioned

[hazl] 24/7/2015 15:30

I think juzzer was joking gold miner, by the way thanks for your posts.

[hazl] 24/7/2015 11:29

yes its a gem 8-)

[henryd14] 24/7/2015 11:12

Love this share

[43rick] 24/7/2015 07:55

Gemfields given a BUY rating by the telegraph's Questor this morning.

[goldminer70] 23/7/2015 14:25

I posted yesterday saying that an 8 page highly technical report on the Montepuez Ruby Mine had been issued.

Proactive Investors have written a very good summary.

"Gemfields’ (LON:GEM) Montepuez ruby mine in Mozambique has enough reserves for more than twenty years of mining, according to its first independent assessment.

Maiden estimates by consultant SRK were that the mine had a JORC-compliant indicated and inferred mineral resource of 467mln carats of ruby and corundum at an in-situ grade of 62.3 carats per tonne (ct/t).

Probable reserves, which carry a higher degree of certainty, are 432mln carats of ruby and corundum at diluted ore grade of 15.7 ct/t.

That is enough for 21 years of mining, according to an independent technical report.

Gemfields has been trial mining at Montepuez for some months, but the technical report sees a major step up in scale over the next two years.

Production would rise to 5.6mln tonnes annually by July 2017 (from 3.3mln) with processing capacity to rise to 1.3mln tonnes per annum by July of next year.

Costs to bring Montepuez fully on line would be US$65mln in the first two years and US$305mln over its whole life, but that would generate a value of nearly US$1bn and cash of more than US$2.7bn.

Ian Harebottle, chief executive, said this first recorded mineral resource and ore reserve statement was a milestone event and provides further evidence to the continued growth, positive momentum and opportunity inherent within the coloured gemstone sector.

Broker Investec said the numbers were very impressive, adding it had never seen an internal rate of return on a mining project as high as 312%.

“We also believe that the tenement package held by Gemfields has considerable upside potential from here” and how marketing might help to lift ruby price over the longer term."

Next month sees the 1st Auction this financial year of emeralds from the Kegem mine in Zambia and the Market report for the last quarter April to June and in September the full results for the current financial year will be released.

[goldminer70] 22/7/2015 22:24

I don't understand how juzzer100 in his post of the 17th could say "awful JORC results" five days before they were announced. Did he have advanced sight of the report?

Gemfields have today issued a new resource statement by JORC for the Montepuez Ruby Mine in the north-east of Mozambique.
It is 8 pages long and highly technical. It can be viewed on the Gemfield website.
It is very encouraging as it quotes a large increase in the resources of this mine.

The market has reacted favourably with a 5% rise in the share price today.

Roll on next month when the Market Update will be announced around to 8th Aug and the preliminary results for the full year announced later in the month or early September.

With all this good news I believe the share price will hit £1 by Christmas.
Goldminer 70

[hazl] 22/7/2015 08:06

wake up wake up lol

[juzzer100] 17/7/2015 17:24

Oooh - this is exciting!

I cannot believe that Harebottle and co will be standing up in front of the market and presenting awful JORC results.

Lots to look forward to IMHO

[hazl] 17/7/2015 12:18

22ND July next date then..

[philanderer] 22/6/2015 20:48

Still on the watchlist...



'Questor share tip: Falling ruby prices hit Gemfields'

Aim-listed coloured gem is increasing gem production but prices are mixed, says Questor

Gemfields 59.75p -4p

Questor says BUY

[hazl] 22/6/2015 07:43

'Eyes of the dragon'!
How appropriate!
I thought they might make them into earrings....as they were a matching pair,
Seems Gemfields needs many skills,not just mining ,collaboration and tact quite high on the list I would have thought.
IMO

[hazl] 12/6/2015 14:58

Thanks rick 22nd it is!

[43rick] 12/6/2015 12:27

Worth noting that collectors are going to be very interested in this exceedingly rare pair of pigeon blood red rubies (the highly desirable Burmese colour)combined size 45 carats. Auction results apparently expected on 22nd June 9 - see LSE BB.

[43rick] 09/6/2015 20:51

Sanlam lifts target to 90p to reflect ruby sales success - and that with an estimate of only 34 million dollars from this month's Ruby sale. With the recently announced 45 carat pair, that $34 m sounds conservative.

hxxp://www.proactiveinvestors.co.uk/companies/news/68579/gemfields-ruby-business-poised-to-drive-growth-says-sanlam-79876.html

[43rick] 09/6/2015 12:32

The chief executive of Gemfields (LON:GEM), Ian Harebottle, says the pair of matching rubies found at the firm’s Montepuez deposit in Mozambique are “potentially priceless” in the hands of the right jeweller or collector.

[ftseproactive] 09/6/2015 12:14

Video with Gemfields CEO on latest ruby find

[43rick] 09/6/2015 10:41

hxxp://www.proactiveinvestors.co.uk/companies/news/107842/gemfields-boosted-by-exceptionally-rare-ruby-find-107842.html

photo of the rubies

[43rick] 09/6/2015 08:33

Last month a 25.59 carat Burmese ruby – described as pigeon blood colour – sold at Sotheby's auction house in Geneva for a record £19million.

Harebottle said the two Mozambican rubies are also 'pigeon blood' colour which is usually only found in rubies from Burma.

The 45 carat stones will form part of Gemfields' auction in Singapore later this month.

[hazl] 09/6/2015 08:16

yes 45 carats....just searched