Positive for Gemfields. The last CEO always said that Madagascar has the most potential but is the most corrupt so refused to deal with them.
Having now exposed corruption it should help to open the doors whilst enhancing their reputation in what is a pretty dirty industry, blood diamonds for example |
More details in the national crime agency report. Be interesting to see if there is any reaction from France with a French national being implicated. https://www.nationalcrimeagency.gov.uk/news/madagascan-president-s-chief-of-staff-charged-with-bribery |
Madagascar, as I recall, was only a gem prospect with nothing ever invested or agreed ?If so, then I suspect we won't be doing business there until the govt changes, but it will show other potential partners that gemfields is an honest company. Whether that is a good or bad thing when dealing with southern Africa in a different matter ! |
Shows their honesty in reporting it. |
news about alleged bribe attempt |
The second wash plant will significantly increase earnings from 2025 |
Liberum (house broker) don't see any problem with the dividend.They have 2023 of 2.2p. 2024 of 2.3p and 2025 of 2.5p.They have a low point for net cash in 2025 of $44m before rising again rapidly. |
Being objective the risk is of lower dividends though as they now have to cater for this expense. Getting sold off. |
Cost is over 2 years and will be funded by cash and debt, will pay for itself in 18 months. Being paid for in a very weak currency.
Still large cash reserves to be repaid to shareholders via dividends.
Very positive. |
What does this investment mean in terms of revenue and the dividend? |
Probably due to a write down of PGM investment at some point in this years a/c's? |
Share price is disappointingly stuck but at least it is stable, could be worse but yet another example of a FTSE stock at half its true value. |
Nice to have Ninety-one / Investec onboard. |
Hopefully a full year dividend of 2.5p |
So under the radar as company does so little to promote itself.
Needs a Nasdaq quote |
Yes, I agree, share price absurdly low at current levels. Gemstone market outperforming others with continued strong demand at auctions.Highly profitable mines.Faberge continuing to grow.Net cash over 50% of market cap.Share buyback scheme in operation.20% dividend return.Would still be cheap at double the share price. |
Half year cash position of £100m equals over 8p per share, half the market cap,
so the 2 mines which produce revenue of £260m, Faberge and the stake in Selibolo Platinum are valued at less than £100m or 8p per share.
Co bought back 1m shares at 345c, 15.2p, on Friday so that is a floor for the share price, I believe the other line of stock was bought by Armira Capital, a London fund.
First half production of premium rubies and emeralds was in line and Faberge sales were satisfactory.
Weak diamond prices and softening luxury goods sales worldwide has seen the shares drift back but coloured gemstone prices are at near record levels.
Conclusion, the strong cash position will lead to further big dividends and the share price is absurdly cheap. |
Seller cleared hopefully |
Very high volume in SA today |
Being objective the only reason here can be Mozambique but ok so adjust to a p/e of 7 or 8 but not 4! Short sellers have far too much hold on UK markets.
Barclays P/E 3.5, L&G P/E 6
What's the excuse there?
Other miners: Pan-African P/E 4, Sylvania Platinum (cash adjusted) 4
If American listed at least double the UK share price |
I agree that PE ratio of 4 surely can't go on indefinitely, especially with earnings looking so solid going forward and such a high dividend yield. Nice to see Faberge building nicely as well. Noticeable step up in marketing recently. Should be another very valuable / profitable arm of the business before too long. |
Looks like a seller cleared in S Africa and it may well be that the Company bought back the shares but we will not know till Monday morning. |
16p paid.
Not sure how a p/e of 4 can be justified but so many UK listed stocks like this; on the US S&P they would be 3x the share price here. |
Shares in S Africa now back to the level company will buy back stock.
Mozambique situation improving daily, maybe the market thinks gemstone prices will
fall with diamonds but there is a disconnect based on limited supply. |
So update on Monday.
1p interim dividend? |
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Hot Features
Premium
