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Happy to watch and learn.
Just looked them up. On 2020 report it has cash of R8bn. I have calculated this as £450m. It looks like they own IRR, which I think is Australian. Very happy to be corrected on any of this, so please do check for yourselves. Ericeric, do you know what it would cost to buy out Gem?
An interesting comment on their presentation of 2020 is: Assore management is focussed on streamlining and modernising the business.
? Actively looking for appropriate, value-accretive, growth opportunities.
Didn’t realise these guys have a Jv for gold and gem exploration in Mozambique
Someone wants them in a hurry. That takeover could be close by Eric. Still so undervalued!
Can’t believe the sp hasn’t gone up 50% today but since the RNS was released after trading there’s a reasonable chance of this happening tomorrow.
looks good ericeric.
Probably already posted but just bought in and find the company very interesting.
RNS 12 8 2021
Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:
"Our most recent auction of commercial quality emeralds generated the most fervent bidding activity we've seen in the last decade. Multiple new records were set for this auction category including the highest ever auction revenue (at USD 23.1 million), the highest ever average price per carat achieved (at USD 6.61 per carat) and the highest number of companies participating in the bidding. We've witnessed a step-change in both market demand and in the prices bid by our clients, paving the way for an exhilarating cycle in the coloured gemstone sector".
-ENDS-
I really appreciate you sharing info like this ericeric. I’ve been in shares since 2006 and currently have 50% in 3 cyber security companies and 5”% in this. I have never felt more confident about a share before and could be shown to be wrong. However, I don’t think so. I think we are ahead of most investors in spotting a real winner. I would be surprised if this hasn’t doubled or more by Xmas.
Half yearly results are announced on this date. It seems to me to be massively undervalued. Will these results alert other investors to the potential rewards. Jeff Bezos was overtaken as the world’s wealthiest person by Bernard Arnault. His money is from luxury designer labels. Gemfields owns Faberge who now sell a lot online. If you look at Gemfields on google finance and choose max on either SA or LON it seems obvious that this is about to be a multibagger.
Am I right in saying there is a platinum asset they are trying to offload?
You look at what the SP was pre-covid, there is a lot of catching up to do!
Seems criminal buying them at this price.
So pleased to be in this before it is common knowledge. I think it’s time to buy some more.
For once I think I’m ahead of the curve. Only regret is that I didn’t invest more at these low prices,
Auctions resuming should provide an increase in the sp:
Over the last decade, Gemfields’ Kagem emerald mine’s gemstone production has tripled while the prices received have increased more than six-fold.
On 31st July there will be a report that gives details about monthly operations up to 30th June 2021. As COVID scuppered operations and the sp suffered I am hopeful that it will recover now that something closer to normal service is resuming.
Unusual RNS released this morning. However, looking at potential sales of rubies and emeralds in the future, I’m feeling very optimistic. Ignore the day to day fluctuations, focus on the longer term trend. This is rising.
I live near Poole, where Sunseeker yachts are manufactured. Fosun invested 1.6 billion in the company. They also purchase other ‘luxury’ companies like whisky distilleries. The recent sp increase could be due to someone accumulating shares on behalf of an organisation like Fosun. This happened recently with BT when french telecom quietly acquired 12%. It’s possible this could be the reason for the increase and if so, it will soon have to be announced.
I have a small interest is All Star quoted on Aquis and it's interesting to see that Harebottle and others from Gemfields are taking an interest. Perhaps All Star will be a future Gemfields but with a better outcome for investors. We will see. GL All.
Results are hardly a surprise given the current global situation. Still intrigued by the big buyer tho who hasn’t been put off.
Gemfields (GEM LN) 7.88p, Mkt Cap £89.3m – Resumption of operations at Kagem and Montepuez after a year of disrupted production and sales
Gemfields reports that it plans to resume mining at both its 75% Kagem mine in Zambia and the 75% owned Montepuez ruby mine in Mozambique during March.
The phased resumption at both mines is expected to restore them to full scale operations by the end of April.
“As a result of the assorted cash saving measures implemented by the Group in response to the impact of Covid-19, all but critical operations at Kagem and MRM were suspended since 30 March 2020 and 22 April 2020, respectively”.
Gemfields describes that the impact of the pandemic on travel and on the ability to assemble has resulted in “no traditional Gemfields auctions … [being] … held since February 2020, when USD 11.5 million was realised from the sale of commercial quality emeralds in Lusaka”.
In the interim period, it has held what it describes as “a series of sequential emerald mini-auctions, whereby bids were placed online after multi-city, in-person viewings of the gemstones by customers in November and December 2020, generating total revenues of USD 10.9 million … In 2020 therefore, aggregate auction revenues were USD 22.4 million, a fall of USD 178.3 million (or approximately 89%) when compared with 2019”.
The company also confirms that there was “no ruby revenue in 2020”.
Gemfields confirms that it will continue its current sales mechanism for both emeralds and rubies “in the near term” commencing on 15th March and that “Subject to Covid-19 developments, the Company is hopeful that it will be able to return to a more regular auction format during the fourth quarter of 2021”.
Describing “a grisly 2020”, CEO, Sean Gilbertson, said that “With the world's largest emerald and ruby mines producing no gemstones for a year, we look forward to seeing the supply and demand picture play out in 2021. No ruby auctions have been held since December 2019 and there has been no new ruby supply produced by MRM since April 2020, meaning the forthcoming auctions represent an important offering for both mid-stream players and jewellers seeking to secure inventory”.
Someone accumulating here, if it’s Rational Expectations then the question is surely why they are gathering so much shares.
When auctions are running as normal again there will be the obvious boost to the SP but think there is a longer game playing out here. Such an illiquid stock, where are they getting all these shares from for the big buys?
I see former CEO, Ian Harebottle has just joined NEX shell, All Star Minerals ASMO - another gemstone company in London now.
Gemfields Halts Buyback As Ruby Mine Operations Suspended
from Alliance News | 22nd April 2020 10:25
(Alliance News) - Gemfields Group Ltd said Wednesday its Mozambique ruby mine has halted operations and it has suspended its share buyback programme.
At the Montepuez ruby mine, all but critical operations have been suspended as of Wednesday.
"Security, maintenance and other essential services will continue in order to ensure that MRM is well placed to resume normal operations as soon as it is safe and practicable to do so," Gemfields said.
The company continued: "Given recent episodes of illegal mining activity on the concession, attacks on MRM's security teams and the recent release of prisoners in the town of Montepuez, including approximately 150 illegal miners, as part of the government's Covid-19 response relating to overcrowded prisons, MRM has introduced additional security measures, increased the size of the security team and deployed patrol dogs. In addition, trained members of its security service providers have been equipped with firearms in accordance with the Voluntary Principles on Security and Human Rights."
Gemfields has suspended all expansionary capital expenditure at the mine for the foreseeable future.
Gemfields noted it has access to USD30 million of undrawn overdraft facilities for its ruby mine.
Elsewhere, the miner said it is looking to preserve costs. Staff have moved to a four-day workweek and have agreed a 20% pay cut.
Gemfields has also suspended its share buyback programme, due to the "considerable level of uncertainty".
Shares in Gemfields were 2.8% lower in London on Wednesday at 7.90 pence each. In Johannesburg, the shares were 3.2% lower at ZAR1.50 each.
By Paul McGowan; paulmcgowan@alliancenews.com
The one trade so far this morning is mine ( shows unknown ) it is a buy .
Spread 7.14% shows .
Been trying for months for the 7.25p
Still no board on ii
Only trades seem to be sells @ 10p
Gemfields Emerald Auction Gets USD12 Million Despite Virus Hurt
from Alliance News | 24th February 2020 08:57
(Alliance News) - Gemstones miner Gemfields Group Ltd on Monday said a February emerald auction in Zambia secured USD11.5 million in revenue, but added that the result was "dampened" by falling consumer demand due to the coronavirus outbreak.
The USD11.5 million represents a 6.5% increase from the USD10.8 million in auction revenue secured in February 2019.
Gemfields' Managing Director of Product & Sales Adiran Banks said: "The results of our first auction of 2020 are in line with prior auctions of commercial quality emeralds and demonstrate a stable underlying market. It was however evident that the fallout of COVID-19 - the coronavirus - dampened what might otherwise have been a buoyant result.
"Firstly, the uncertainty surrounding Chinese consumer demand in the wake of COVID-19 has understandably created negative sentiment in the mid-stream market. Secondly, a handful of our key auction customers did not travel to Lusaka as a result of the increased risk associated with COVD-19 and thirdly, the Hong Kong market - important for both gemstones and jewellery - has had to endure multiple successive misfortunes."
Gemfiels sold 2.9 million carats, having offered 4.5 million. In an auction last February, it sold 2.5 million carats, and offered 4.2 million.
Carats were sold at an average of USD4.01 each.
Gemfields shares were 2.6% lower at 10.42 pence each in London on Monday morning. They were 2.4% lower at ZAR2.00 each in Johannesburg.
By Eric Cunha; ericcunha@alliancenews.com
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