Gemfields Share Discussion Threads

[gill17] 31/3/2023 10:05

What is 'the hurdle rate' Saracen?

[saracen3] 31/3/2023 09:30

From the annual report released today

At an Extraordinary General Meeting in November 2022,
shareholders overwhelmingly approved the Board’s recommendation
of a share buy-back, with over 99% support. As Gemfields’ share
price has remained strong since the approval was received, the hurdle
rate set by management and recommended by shareholders has not
been reached. If shares are not purchased by the time of the next
AGM, scheduled for the end of June, the Board will review the
process and consider the most suitable usage of the USD10 million
capital allocated to the buy-back

[davr0s] 30/3/2023 17:26

Am still curious what happened to that share buyback...

[saracen3] 30/3/2023 17:17

No, the discount is due to the history of S African company Pallinghurst scandalous "recommended" takeover at a discount 5 years ago when trading moved from London to Joburg and exposure to the Rand which has fallen 30% since.

Management and Non Execs fought for a better offer but were barred from offering to shareholders. Many investors have long memories.

The Old Guard have gone and the current board have done a fantastic job but failed to tell the story, hence the discount and hence the opportunity .

A new Investor Relations guy has joined and seems keen to get out and promote the company at last.

[gill17] 30/3/2023 16:53

The shares are held in Assore International Holdings Ltd which is a UK based Company, and the 30th June 2022 accounts haven't been filed yet. They purchased 311,540560 shares between 08/09/21 to 04/10/21 at an average price of USD .2259. I think this is about 18p. This Company isn't straight forwards and I don't understand much of the accounts as there seems to be a few Companies in the group. Is this where the weakness is perhaps?

[saracen3] 30/3/2023 16:25

Unique company, only quoted coloured gemstone miner. Should trade at a premium not a discount but had been kept under the radar for too long.

[gill17] 30/3/2023 16:15

I did buy more today so fully committed with over 100,000 shares. This share remains a complete mystery to me, and my best guess is that people get bored and sell, or they know something we don't! But hey, I could make loads of money and that would be a nice reward for my/our patience!

[saracen3] 30/3/2023 15:45

Some selling in S Africa code GML.JSE

[justiceforthemany] 30/3/2023 15:33

Yes I see those 2 big seeming buys but why has the share price not moved?

[gill17] 30/3/2023 10:38

A million shares purchased at 18.5 after close of business on Tuesday and 500,000 yesterday after close of business at 18p. Biggest trades I've seen to date. Very tempted to buy more!

[justiceforthemany] 28/3/2023 15:19

Again not sure who is selling with a yield of 20% and P/E sub four.

[saracen3] 26/3/2023 10:03

Auction result tomorrow, bigger ones in the summer

[podgyted] 26/3/2023 09:41

Lets hope they kept something up their sleeve for the March auction.

[saracen3] 24/3/2023 12:02

3.3m traded in Joburg

[gill17] 24/3/2023 11:54

A million shares traded today and it hasn't moved the price significantly. I would be overjoyed to get to 20p let alone true value!

[saracen3] 24/3/2023 11:39

Liberum reaffirms 27p target


Gemfields* (BUY, TP 27p) – EBITDA and dividend beat (8 pgs)
Gemfields had a record year with EBITDA of $166m versus our expectations of $152m. The beat was
driven by Montepuez outperforming on COGS. The strength of the year has led the company to
declare a $35m final dividend (versus Liberum est of $25m), giving an implied yield for the year of
19.6%. We do expect revenues to revert to trend in 2023, but this still bodes very well from a FCF
generation perspective (25% yield), and we see upside of 58%.

[justiceforthemany] 24/3/2023 09:50

Include the interim and yep yield is 20%
This should have gone up 40% today but yes again the market is rigged.

[justiceforthemany] 24/3/2023 09:44

Muted reaction.
Pathetic

[davr0s] 24/3/2023 09:44

It's not a 20% divi - looks like you are doing the currency conversion the wrong way. It's more like 13% based on current ex rate

[bubloo] 24/3/2023 08:06

they have a stake in sedibola platinum too

[rolo7] 24/3/2023 07:52

sharebuyback:
As Gemfields’ share price has remained strong since the approval was received, the hurdle rate?? set by management and recommended by shareholders has not been
reached. If shares are not purchased by the time of the next AGM,
scheduled for the end of June, the Board will review the process and
consider the most suitable usage of the USD10 million capital
allocated to the buy-back.
so the board thinks the share price is to high and just planned to use buyback to stop share price falling?

[soleman1] 24/3/2023 07:28

I believe its about 3.3p annual divvi, but yes just a fraction off 20% return per annum.

[saracen3] 23/3/2023 17:46

We should hear news of the 50m share buy back,

announced 6 months ago but not actioned yet. Hard to understand why.

[tempted] 23/3/2023 16:27

Yes. Meant to say have you got eps cons 5.8 cents? agree with the earlier poster the last report suggested a redistribution which we’ll soon discover what that means.