Latest cont.2 Jul 2013 00:48
“In the near term Gemfields do not envisage any adverse effect on auction attendance or pricing given the new location as the company has already established a loyal customer base. Long term, however, the requirement to auction emeralds in Zambia may limit the number of buyers attending that could impact realisations,” the broker said.
The broker has reiterated its ‘buy’ recommendation and a target price, derived from a net present value calculation, of 39p.
“We still hold no valuation for the Montepuez ruby mine in Mozambique: though we view the advanced stage exploration as very promising, we are awaiting further operational and financial estimates,” the broker said.