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Gemfields Group Ltd - London and Johannesburg-listed gemstone supplier - Notes Montepuez ruby mine in Mozambique has enough inventory for one mixed ruby auction. Has lowered capital expenditure at the ruby mine to about USD1.8 million per month from USD2.6 million previously. Notes Kagem mine in Zambia has enough inventory for one higher quality and one commercial quality emerald auction. Kagem's expenditure lowered to USD1.3 million per month from USD3.4 million. Retail unit, Faberge, restarts operations, but interim revenue expected down 34% year on year at USD2.5 million from USD3.8 million. Group revenue guided for 83% plunge to USD15 million from USD89 million.
In 2019, 93% of Gemfields' group-wide revenue of USD216 million was derived from the six gemstones auctions held during the year. Due to the Covid-19 pandemic, Gemfields has only been able to host one auction in 2020, generating USD11.5 million. Will look to implement additional cash maintenance measures if auctions do not return by December.
Current London stock price: 7.31 pence
Year-to-date change: down 19%
Current Johannesburg stock price: ZAR1.45
Year-to-date change: down 22%
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
