Gemfields Share Discussion Threads

[hazl] 08/10/2015 19:25

Discusses the problem of peppering in the industry.Its sure to give our gems more credibility I would have thought?

[hazl] 07/10/2015 19:51

I also think the management of Gemfields are very canny indeed.
This recent collaboration with Colombia comes at an extremely succinct time in Colombia's history.
I found this in a piece that J.McKeigue writes for Moneyweek,that mentions Colombia in a more general way as being possibly a good future place for potential.


from James McKeigue's piece in the
The New World

'If you take a step back, and look at it on a regional, historical level, then we could be on the brink of something huge. The FT’s John Paul Rathbone nails it when he hails Cuba’s rapprochement and Farc peace process as “momentous events, with regional geopolitical implications that could help untie a horrendous Gordian knot of violence, migration, drug-trafficking and instability that has plagued the Americas for over half a century.”

It’s also clearly good for Colombia too. Regular readers will know that I’ve long been bullish on the country. And while my main reasons for liking it are demographics, macroeconomic strength, infrastructure and its open economy, I’ve long said that a peace dividend could give our investments there another boost.'

He also says that '12 million Colombians, from a population of 48 million, moving out of poverty since 2000.'
Basically they must have the finger on the pulse for continuing to grow Gemfields,as best as they are able,in my opinion.
IMO

[hazl] 07/10/2015 15:54

If I compare them to the rest of the mining stocks then they have done exceedingly well.
If I look at the price I got them then I am pleased with the current price.
It is of course the future that counts and that is unknown.
Each of us has to make their own decision on that.

[goldminer70] 07/10/2015 15:41

Its hard to see how Ian Harebottle says Gemfields “quadrupled of the size and growth of the company.” when the turnover went up from $m160,089 to $m171,448.
I think he is very prone to exaggerate.
Goldminer 70

[juzzer100] 07/10/2015 15:33

Gold miner - I think revenues and profits for GEM depend a lot on the timings of the auctions. Not looked in great detail, but 2 higher quality auctions in H1 compared to one in H2. Also the only high quality emerald auction was in H1. H2 was quite ruby focussed which is good news as we want the company to diversify and grow. Ambivalent about the results - they are so so. I'll be keeping this one, but agree it's a long term hold.

[proactivest] 07/10/2015 12:52

Video interview with CEO Harebottle



Ian Harebottle, chief executive of coloured gemstone specialist Gemfields (LON:GEM), says the company’s full-year results reflect what’s been a phenomenal year of growth for the business.

The miner said it had either met or exceeded production guidance at its Kagem emerald and Montepuez ruby operations, with record prices achieved at the six auctions held during the period.

Costs increased and pre-tax profits were lower, but speaking to Proactive, Harebottle puts this down to a “quadrupling of the size and growth of the company.”

[goldminer70] 07/10/2015 12:45

My initial reaction to todays figures was very disappointing.
The interim figures for the half year showed a net profit after tax of US$23.2 on a turnover of US$103.4
I expected this to be at least repeated in the second half.
But the final figures for the full year showed a net profit after tax of US$12.3 on a turnover of US$171.4

So Gemfields either had a disastrous second half or the interim figures were wrong. I think it was the interim figures which were grossly exaggerated, which doesn't speak well for the management.

I still think this is a good mining company. There are some very encouraging things in the report, but it is not the fantastic mining company I thought a week ago
Goldminer70

[hazl] 07/10/2015 08:50

To be frank when the director sold some a while back it was a sign and I sold some. I do like the company though,for the future and so have retained some running on their profits.
I think Faberge will always be of interest.

IMO

[scrutable] 07/10/2015 08:34

A mass of obfuscating detail makes this report difficult to value quickly. Disappointing in that a 50% increase in emerald sales and a very optimistic outlook for the ruby project eps was well short of forecast and down to negligible levels (1 cent) and despite strong increase in depreciation op cash flow was sharply down. Sadly, as I like the creative strategy of the last two years, original marketing for a mining business, there are better opportunities for the cash so I sold my small holding of 14k immediately. I am still keeping a watchful eye on the company but don't expect any fireworks for a few months at least.

[hazl] 07/10/2015 08:18

Haven't had a chance to look properly at the figures. They certainly seem to have had to keep up the marketing.
'the Company believes demand for coloured gemstones will remain firm throughout the coming year and is targeting at least three emerald and beryl auctions alongside three ruby and corundum auctions for FY2016.'

[goldminer70] 07/10/2015 07:35

Results ~ Very disappointing
Goldminer70

[hazl] 02/10/2015 08:25

Oct 7th then...

[goldminer70] 01/10/2015 11:07

I am more optimistic than Uncle John. I think Gemfields is greatly undervalued.
The interim results, market updates and auction returns all point to a bumper set of results.

Therefore it is a puzzle why the final results are late.
Last year on the 8th September 2014 Gemfields announced that the results would be announced on the 22nd September 2014.
So they are nearly a month behind last years schedule.

There is saying in the City "Late News is Bad News" on the other hand I believe they have made so much profit it is taking some time to count it.

Goldminer70

[uncle john] 23/9/2015 21:27

I think this is fairly valued at the moment as a miner and dealer of uncut stones. See chart, 60p has been accepted as fair value for several months with fairly frequent reports of good news.
Good steady progress.
The real improvement will come with better 'added value' from retail, Faberge jewellery, and the time pieces.
Then I think some of the higher targets for share price might be reached.

Has anyone done any analysis on how well the directors have been paid so far?

[juzzer100] 23/9/2015 20:02

This felt like a really good RNS this morning so great for long term. Bit disappointing no movement today but very pleased to have these in my SIPP.

[hazl] 23/9/2015 08:13

'The Kagem Emerald Mine ("Kagem" or the "Mine") in Zambia, which is 75% owned by Gemfields and 25% by the Government of Zambia.'

It is the sensible way forward....cooperation....is it not?

very good strategy imo

[hazl] 15/9/2015 10:45

there are trades here of course

[43rick] 15/9/2015 08:51

Finals due this month - or early next month

Auction revenues may be of interest -

2012/13 US$42mn (ie July 2012 to June 2013)
2013/14 US$96mn
2014/15 US$154mn

and if revenues are adjusted to take into account the moving of the June 2013 auction to July 2013 we have

Auction revenues -
2012/13 US$73mn
2013/14 US$64mn
2014/15 US$154mn

[hazl] 15/9/2015 08:28

Well done rick a very positive piece

[goldminer70] 14/9/2015 22:21

Thanks Rick for posting that. Very good write up. The results were announced on Monday 22nd September last year. Lets hope its next Monday. The Interim Results, Market Update and all the auction results indicate bumper results.