Small emeralds auction held. |
Zambian duty lifted. |
Panmure have lifted their price target 20p. More than 3x the current SP!
March auction apparently. |
Don't they have a gold find of more than 100,000 ounces?
3,000 dollars an ounce current price makes that hugely valuable - why aren't they selling it?
Same goes for Faberge - pay off debt.
Lack of director buys in the past year is not good. |
On my watch list teacup, if they had a placing say 3p, there's always a bit of wriggle room around the retail invite, I'd be interested until then I'm definitely on the fence. The jurisdiction isn't good but at a price.... |
Placing looking imminent here that's what's caused the fall. I suppose the good news is if you are going to stay here you might qualify for some of the placing shares at 3.5p |
Would expect auctions, rubies for certain in the coming months. |
So how are they going to pay off the debt with auctions suspended? Placing is possible IMO. |
Not me today but have been buying in Joburg where they have been cheaper than London. |
Well some brave/stupid person bought 333,000 shares today. |
No surprise there. The House broker. Gemfields nominated adviser and broker Panmure Liberum. |
No volume? Is it suspended? |
Closed period can't have been ongoing for the last 4 months though! |
 Panmure have 16p target
Tom Price
Research Analyst
+44 (0) 20 3100 2085
tom.price@panmureliberum.com
In its year-end Operational Update, GEM has confirmed total
auction revenues of US$196m (known since final ruby sale,
12 Dec’24) vs US$241m in 2023 (-19%) following weak
sales in H2’24 (ruby volumes, emerald prices). 2024 finished
with a number challenges (Mozambique unrest, emerald
market commotion + royalties), however, things are on track
at MRM, and we’re encouraged that the Company has felt
confident enough to suggest the 15% export duty may be
revoked, which would be some welcome good news. BUY
maintained, TP 16p.
MRM business as usual since start of the year
Although operations were briefly halted at MRM in late-Dec following
disturbances at the mine, at a time of election turmoil across the country, since
the start of the year MRM has been mining / operating as usual, and
construction of the second processing plant remains ‘materially on budget and
on track’, for completion by end-June’25 (key GEM earnings driver).
Kagem sales paused
As flagged in the 23 Dec’24 ‘Strategy Update’, mining at Kagem has been
paused for up to 6 months as part of a cost cutting exercise, with some of the
ample stockpiles to be processed. But news that emerald exports have also
been halted following the reintroduction of a 15% export duty is a different
matter, and the statement that “Kagem anticipates that the duty may be
revoked and allow a commercial-quality emerald auction to go ahead in Q1
2025” suggests GEM is confident of some good news here.
No change to earnings
Net debt at end-2024 was US$80.5m, before auction receivables of
US$33.9m, and the Company has already guided that this could exceed
US$100m during 2025 as the capex spend at MRM is completed. Some
operational costs + capex are reported in the update, and we note these are
slightly higher than PL estimates (+US$7m and +US$6m respectively) – cost
pressures are being felt – however, we are not changing our numbers at this
stage given the unaudited nature of these figures (+potential royalty unwind =
modelling changes) and await the more detailed full year operational / financial
results due on Thursday 27 March 2025. BUY maintained, TP 16p.
United Kingdom | Resources: Mining & Commodities | Precious Stones | GEM LN
| Market Cap £62.5m | 31 January 2025^ BUY Target Price 16.0p
Share price 5.3p
at close on 30/01/2025
G |
Directors cannot buy in a closed period. |
& the net debt will be paid off how exactly? & no directors buying any stock? |
On my scoring of -5 to +5, I give Gemfields latest update a sold +2. |
Better than feared New wash plant on time and on budget and Mozambique calmer.
Should pick up from here. |
Hello, any holders here still? |
No directors buying still. Placing coming? |
Gemfields scales back emerald and ruby ambitions in southern Africa:
The world leader in coloured gemstones has scaled back operations in Zambia and Mozambique after disappointing auctions. In Madagascar, the British group is no longer welcome in the sapphire sector after it brought a corruption case against an adviser to Andry Rajoelina, president of Madagascar from 2009 to 2014.
The UK mining group looked set to become a key player in Madagascar's gemstone sector until its talks with the government were abruptly interrupted amid accusations of bribery and corruption. |
Covid low hit. 5p. |
Saracen it looks like this is going bust.
6p now. |
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