Gemfields Share Discussion Threads

[juzzer100] 04/5/2016 08:22

Market update... has generated one trade. Yawn! We are a long way off the heady heights of 69p!

[markten33] 26/4/2016 16:35

Have they found diamonds?BOD up 130 per cent this month

[thomasthetank1] 21/4/2016 16:59

Read Panmure Gordon & Co's note on GEMFIELDS, out this morning, by visiting hxxps://www.research-tree.com/company/GB00B0HX1083
"During the last quarter Gemfields announced in-line interim results and the completion of the latest higher-quality rough emerald auction in Lusaka. The sale saw revenues generated exceeded our base case estimate of $30m by raising $33.1m whilst the record average value of $70.68/ct also beat our expectations. We reiterate our..."

[thomasthetank1] 15/4/2016 11:42

Read Panmure's detailed quarterly report on the diamond sector including Gemfields (GEM), out this morning, by visiting hxxps://www.research-tree.com/companies/uk/gemstones_%26_diamonds/gemfields_plc …
“During the period Gemfields announced in line interim results and the results of the latest higher quality rough emerald auction held in Lusaka. Overall, the revenues generated exceeded our base case estimate of $30m by raising $33.1m. The record average value of $70.68/ct also beat our expectations, we retain…”

[juzzer100] 15/4/2016 09:19

George - I have to agree. I can't quite see how the share price is going to move on this one without big news. I have scaled back since January.

[ukgeorge] 12/4/2016 15:52

I love GEMD :)

[thenewtradesman] 12/4/2016 15:45

Just looked at gem diamonds 30 days chart and wondered if I typed in the wrong epic .......!!!

[ukgeorge] 12/4/2016 09:37

just sold as am bored, so these will likely breakout shortly.

[juzzer100] 07/4/2016 11:40

I look forward to getting an update from the company on the Montepuez ruby mine. Not just on the next auction but also on the relationship with the local residents with whom GEM have been shown last December to be somewhat heavy-handed (to put it mildly). See previous posts. Nothing more from Mr Harebottle in 3 months. Are the company still just carrying on as per the shocking report?

[oilyminer] 06/4/2016 11:23

A bit disappointing that more people have not bought in on the back of the last results.
According to the chart fair value opinion is around the 50p level. Therefore who will buy in at 46.5 for a 3p rise.

[thomasthetank1] 04/4/2016 13:04

Read Panmure’s full note on Gemfields (GEM), out this morning, by visiting www.research-tree.com…
"High quality emerald auction - Gemfields today announced the results of last week’s predominantly higher quality rough emerald auction held in Lusaka. Overall, revenues generated exceeded our base case estimate of $30m by raising $33.1m. The record average value of $70.68/ct also beat our expectations, albeit on first reading, it seems as though lower quality/lower value goods did not enjoy the same level of demand as the higher quality goods, similar to the trends seen elsewhere in the precious stone market. We retain our…"

[thomasthetank1] 04/4/2016 13:00

Read Panmure’s full note on Gemfields (GEM), out this morning, by visiting www.research-tree.com…
"High quality emerald auction - Gemfields today announced the results of last week’s predominantly higher quality rough emerald auction held in Lusaka. Overall, revenues generated exceeded our base case estimate of $30m by raising $33.1m. The record average value of $70.68/ct also beat our expectations, albeit on first reading, it seems as though lower quality/lower value goods did not enjoy the same level of demand as the higher quality goods, similar to the trends seen elsewhere in the precious stone market. We retain our…"

[ukgeorge] 04/4/2016 10:29

and share price Angels view,

Gemfields (GEM LN) 45 pence, Mkt Cap £245m – Lusaka Emerald and Amethyst auctions.

• Gemfields has announced the results of its recent auction held in Lusaka between 30th March to 3rd April. The emerald auction realised US$33.1m from the sale of 469,000 carats of high quality emeralds. The auction had offered a total of 0.56m crats of emeralds for sale of which 89% were sold.

• The average sale price of US$70.68/ct represents a new record, approximately 21% higher than the US$58.42/ct realised at the previous auction held in Singapore in early September 2015 and approximately 39% above the average US$51/ct realised from the sale of 3.2m carats in the preceding 5 auctions.

• As well as emeralds, higher quality amethyst from Kariba Minerals operation (50% owned by Gemfields) were also sold in Lusaka. The auction realised a total of US$0.22m on the sale of 6.6m carats (an average price of US$3.26/ct) with 70% of the 9.4m carats offered being sold.
• The next auction is expected to take place in Jaipur during May and is “anticipated to be predominantly comprised of lower quality emerald and beryl from the Kagem emerald mine in Zambia.”

• CEO, Ian Harebottle, commented “Demand for – and prices of – emeralds clearly remain as robust as ever and gemstone mining represents one of the healthier segments of the sector. We’re delighted that, in collaboration with our partners, the Government of the Republic of Zambia, the Kagem and Kariba operations continue to perform strongly.”

Conclusion: Gemfields’ emeralds are attracting robust prices. The company is indicating that its next sale in Jaipur in May is of the lower quality stones, perhaps in part representing that portion of the Lusaka offering which did not sell, so we would not expect to see the record prices of the Lusaka sale repeated in Jaipur, nonetheless, Gemfields has established a solid market presence.

[ukgeorge] 04/4/2016 10:12

Gemfields (GEM LN) high quality emerald auction totals US$33.1m revenue delivering US$70.68/ct, a new record with 84% of product sold. An amethyst also generated US$0.22m selling 6.6mcts for US$3.26/ct. The emerald auction revenue was slightly below the previous auction of US$34.7mcts although fewer carats were sold. The company’s next auction is due on May 16th and will be composed of predominantly lower quality emerald and beryl from Kagem. Source: Company

Investec View: A positive development and good to see prices up from the previous HQ auction value of US$58.42/ct although fewer stones were sold. Mixes at auctions will vary with the company adjusting product for where it best sees demand whilst ensuring it doesn’t over supply gem types thereby undermining prices longer term. We look toward the sale result for the next ruby auction as a key value driver in the months ahead.


all pretty good

[tomatoma2] 09/3/2016 22:51

Fundamentals look strong. Topped up 17000 more today 44p.

[ukgeorge] 22/2/2016 14:15

just ticked over the 100 mda

roll on 50p

[ukgeorge] 22/2/2016 10:33

SP Angel view

Gemfields (GEM LN) 45 pence, Mkt Cap £247m – Interim Results in Line
Buy - Target Price 82 pence
• The company reported revenues of US$94m as expected based on auctions held to date.
• EBITDA of US$35.6mn is down from US$61.7m last year.
• Profit after tax of US$8.2m down from US$23.2m last year.
• Cash at bank of US$24.9m.
• Production results in line with recent quarterly update.
• The company retains its production target of 25-30m for rough emerald and beryl and 8m carats of ruby and corundrum for FY 2016.
• The company see increased demand for smaller sized higher and medium quality rubies suited to larger production runs of mid-market jewellery.
• The next Emerald auction is to be held in March 2016.
Conclusion: These results are in line with our expectations – the recent quarterly update saw good performance from the Kagem mine with mining efficiency ahead of our forecasts. At Montepuez grade recovery is in line. The company are seeing good demand from mid-tier market in jewellery which will be helpful in moving volume as the company builds up production.

[nehpets81] 17/2/2016 11:09

It is George, despite the recent update. It sounds as if Kagem is going rather well but a bit harder to determine how things are going at Montepuez with the values/grades moving around all over the place. Does anyone have a view as to whether it is favourable to be mining the lower grade, high value stuff or vice versa?

Also, it seems as though cash generation has gone backwards with less cash than at the year-end despite negligable capex at Kagem - was this expected?

The blurb around Faberge suggests that is going in the right direction, but I assume it is still heavily loss making.

I guess I should wait until the interim accounts are out next week before making a decision one way or the other on this one...

[ukgeorge] 08/2/2016 15:30

is so quiet....

[ukgeorge] 06/1/2016 15:33

boom roll on 50p

[juzzer100] 06/1/2016 15:15

Nice move north - long may it continue.

[ukgeorge] 05/1/2016 09:36

just tried to buy 7000, no quote available......

tried 5000 they want 46.575.......

same for 3500

trend is broken, imo 50p in short order