Gemfields Share Discussion Threads

[saracen3] 14/8/2023 10:44

Shows their honesty in reporting it.

[lyceeuk] 14/8/2023 10:38

news about alleged bribe attempt

[saracen3] 08/8/2023 14:26

The second wash plant will significantly increase earnings from 2025

[fft] 08/8/2023 14:08

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.

[justiceforthemany] 08/8/2023 13:54

Being objective the risk is of lower dividends though as they now have to cater for this expense. Getting sold off.

[saracen3] 07/8/2023 07:46

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.

[justiceforthemany] 07/8/2023 07:21

What does this investment mean in terms of revenue and the dividend?

[ntv] 05/8/2023 10:42

Probably due to a write down of PGM investment at some point in this years a/c's?

[justiceforthemany] 04/8/2023 17:12

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.

[1realist] 01/8/2023 06:33

Nice to have Ninety-one / Investec onboard.

[justiceforthemany] 31/7/2023 10:51

Hopefully a full year dividend of 2.5p

[saracen3] 31/7/2023 09:03

So under the radar as company does so little to promote itself.

Needs a Nasdaq quote

[1realist] 31/7/2023 08:53

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.

[saracen3] 31/7/2023 07:22

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.

[saracen3] 28/7/2023 15:23

Seller cleared hopefully

[justiceforthemany] 28/7/2023 15:19

Very high volume in SA today

[justiceforthemany] 28/7/2023 12:14

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

[1realist] 28/7/2023 12:06

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.

[saracen3] 28/7/2023 11:41

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.

[justiceforthemany] 28/7/2023 11:16

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.

[saracen3] 27/7/2023 13:48

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.

[justiceforthemany] 27/7/2023 13:33

So update on Monday.
1p interim dividend?

[justiceforthemany] 24/7/2023 19:52

Trading at a discount to the JSE equivalent price again as the pound has weakened.

[1realist] 17/7/2023 12:22

Thanks for the info Saracen. They've scheduled operational update for 2 weeks today (31st July). Do you think they'll release info on wash plant / production rates then?