Gemfields Share Discussion Threads

[soleman1] 22/9/2023 07:21

Divvi is important for me too but it's short term sacrifice for long term gains and this is a fantastic price to enter not exit

[justiceforthemany] 22/9/2023 07:04

Well whatever. The dividend was important to me and it shows no sense or care to shareholders IMO. Even a 0.5p would be better than none and implies little confidence in the short term future here.
I am out for now.

[saracen3] 22/9/2023 07:00

Liberum explains and confirms 26p target

Gemfields (BUY, TP 26p) Results inline, dividend paused - Gemfields financial results were inline with recent guidance and the company have elected not to pay an interim dividend due to the poor run in quality and quantity of high quality emeralds from the Kagem mine (November auction has been cancelled) and the lift in capex for the second processing plant Montepuez Ruby mine. The company have every intention of restarting the dividend at the full year results and with net cash of $61.8m we see it as highly likely . The weakness in Kagem's production has largely been attributed to vagaries in the ore body, which have had particularly bad start to the half in July and August. The first half was also weaker than historic levels, but this was affected by a key product point in the Chama pit being underwater for a longer period of 2023 than previous years.

Given how pent-up demand really drove up pricing post covid, you could see this helping them on emeralds at their next auction, although NB their market share isn’t as dominant here than it is in rubies (maybe 25% vs 50% for rubies)

2.0x FY24e EV/EBITDA and 24% op FCF yield (ie. pre the growth capex at Montepuez)

[soleman1] 22/9/2023 06:54

Seems a bit tight not paying an interim, sure they are investing heavily increasing production but seems overcautious

[saracen3] 22/9/2023 06:49

9am analyst meeting. Gemfields has £100m in cash, 8p, hoping to see the share buy back reinstated now they are no longer in the close period.

[justiceforthemany] 22/9/2023 06:46

Get on the blower saracen!

[lyceeuk] 22/9/2023 06:19

No interim

[saracen3] 21/9/2023 16:12

Hoping for 1.12p unchanged interim we will find out tomorrow.

[justiceforthemany] 21/9/2023 15:57

Cash balance of 125 million USD was stated to June end. That figure should be nearer 150 Million USD now? A 1p/15M USD should be easily affordable for the interim.

[1realist] 19/9/2023 09:58

Good result considering they said it contained a higher than usual proportion of lower value grades. Shows the emerald market is still strong.All eyes on dividend amount on Friday though. With cash reserves being as high as they are, you'd hope they'd try to preserve the dividend despite new washplant costs and slightly lower grade / quantity emerald mining period, but we'll see.

[justiceforthemany] 18/9/2023 11:07

JSE price 13.85p
UK price 13.25p

Scandalous

[saracen3] 18/9/2023 07:48

Ok last year figure included a special sale of a cluster

[justiceforthemany] 18/9/2023 07:25

Good result, 25M?

[justiceforthemany] 15/9/2023 12:25

Regardless the two prices should match. 1 or 2% OK but 5 or even 10%? FCA should get involved.

[saracen3] 15/9/2023 10:27

Generally SA has had the seller and buyers in London

Much easier to deal in London due to currency and market maker system.

Most price feeds for SA are on 15 minute delay.

There is no withholding tax on UK registered stock.

[justiceforthemany] 15/9/2023 10:13

How has the company explained the large discrepancy in share price between thr two exchanges? It was a full penny yesterday, today it is around 0.5p lower in the UK.
Has anyone contacted the company?

[saracen3] 15/9/2023 10:05

EPS was 1.5p so hopefully yes.

Their comments about ruby and emerald pricing remain upbeat

[justiceforthemany] 15/9/2023 10:00

Do we think the interim dividend will be around 1p?
The large discount to JSE price remains.

[justiceforthemany] 14/9/2023 14:52

Added again.
329 ZAR close = 14p
Huge discount here for some reason of 1p, almost 10%!

[justiceforthemany] 14/9/2023 10:17

LSE price trading at a discount to JSE.
So further auction update Monday?

[saracen3] 14/9/2023 08:04

Liberum has not cut its 2024 forecast as they expect high grade production to recover and strong gemstone pricing.

[justiceforthemany] 14/9/2023 07:53

Mid single digit P/E and yield of 15%

[justiceforthemany] 14/9/2023 07:51

Added some.

[saracen3] 14/9/2023 07:48

Liberum has a 26p target reduced from 29p.