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Was there a particular reason for the drop?
I see, Zoopla flying even higher.
as to why this has flown today. Can anyone shed some light?
Well, I don't know what their representative was talking about! They seemed quite diligent and still gave the wrong information. Oh well, an auction now means, as EE states, results next week so hopefully a pushing to mid fifties? GEM has been my best share so recommend it, especially before results from an auction.
Apparently the auction has not started yet, but will be taking place before the end of August (in Lusaka). There is also a Ruby auction to happen before the end of the year. Source: I phoned and asked.
Ericeric, do you know when either of these two are taking place? TIA.
33 million to swell the coffers and down 5%!
Does anyone know the date for the auction? Thanks.
Thanks. Hopefully we will see good prices per carat and smash through 46, although if these incremental rises continue we may get there beforehand!
Is the auction of high/low quality does anyone know? Also isn't it the first time an auction has been held outside of Zambia since the brouhaha?
I'm maybe being too pessimistic: Hopefully the Singapore auction will provide a good result wherever it is actually held.
It is a real shame this company has the potential to be derailed by the myopic government. It has excellent fundamentals and some good acquisitions'. But, although I really don't want to, I may have to sell; I can see this going down before it goes up. :(
Could it get messy, ie. if Gemfields defies the minister and sells outside Zambia, how much power does the minister have? Could he, for example, close the Kagem Mine, restrict Gemfield's activites in the country? I am not trying to deramp, but can see a volatile situation in which one party is going to act against the others wishes, most likely Gemfields against the government.
http://www.businessweek.com/news/2013-06-03/gemfields-barred-from-selling-zambian-emeralds-in-singapore-sale However it does say that “We do not believe that there is any law that makes it illegal to hold an auction offshore,” he said in an interview in Lusaka, the capital. “We are literally in the process now of working on that export process and I hope we get that export sorted out imminently.” (Sean Gilbertson).
But Mr Musukwa said the reason given by the mine is not genuine because prices fluctuate. “The prices of minerals are never static…they keep changing daily and every mining operation knows that they have to plan their operational costs at the lowest price, so that they can record profits when the prices exceed the planned price. Any mine that bases its plans on the highest price has no vision,” he said. Nothing specific about the auction, maybe tomorrow they will say something.
THE first-ever emerald summit in Zambia has opened in Lusaka with Mines deputy minister Richard Musukwa reiterating Government’s commitment to cleaning up the emerald sector currently characterised by illegal trade. Mr Musukwa has also said Konkola Copper Mine (KCM) may abrogate its licence guidelines if it proceeds to lay off 2,000 workers at the mine in order to cut costs. He said this in Lusaka yesterday during the summit aimed at facilitating meaningful dialogue between key stakeholders in the emerald industry. Mr Musukwa said Government will ensure the emerald sector benefits both investors and the people of Zambia. “Let me send a warning that Government is determined to clean up the sector to avoid a situation where illegal traders have been going scot-free. We have many people who do not own a mining business or a mine yet they have huge access to emeralds. This is an unfair practice because the people operating the mines where stones are being stolen are investing in those mines,” he said. Mr Musukwa said Government will partner with the Emerald and Semi-Precious Stones Mining Association of Zambia (ESMAZ) to ensure that initiatives are coordinated to help small-scale miners and crack down on illegal trading. He said there is need for investors to plough back in the communities through the development of schools, roads and hospitals. “Government is committed to ensuring that this sector is helped to ensure that it contributes significantly to the economy. We would like to ensure that we have a win-win situation where the investor is happy, the people are happy and the government is happy,” he said. He also said Government is sad that less than 10 gemstone mines are operating despite the issuance of about 400 licences. Mr Musukwa said lack of capital investment and equipment has contributed to the failure by licence holders to implement their mining projects. “We are saddened as government that only a few gemstone licence holders are operating out of the 400 licences we have issued to date. Many of these operators are faced with challenges that need to be addressed,” he said. On KCM’s plans to lay off workers, Mr Musukwa said the mining company is abrogating employment regulations outlined in the mining licence and Government will ensure that workers are protected. “Among the conditions for issuing licences is that the investor should employ and train local Zambians. If you lay off 2,000 Zambians, it means you are abrogating the mines and minerals Act. You do not expect Government to stand aloof when some investors deliberately forget their duties and obligations,” he said. Recently, KCM announced plans to lay off workers, citing falling copper prices in the last one year and macroeconomic trends.
I hope so. Last time they announced that it should be held in Zambia quite close to the auction didn't they? It seems like something the government may do and hold such an occasion to promulgate it. But up today so hopefully this portends good things for tomorrow. Does anyone know what time (GMT) the summit starts?
So is the summit on Friday going to determine whether we can officially hold the auction in Singapore, which should be better than holding it in Lusaka? The price seems to be hovering mid 20's, maybe waiting on this piece of news to propel it either way- upwards hopefully!
.Faberge Purchase Puts Gemfields on Jewelry Retailers’ Radar By Matthew Hill - Dec 11, 2012 7:35 AM GMT ..Facebook Share LinkedIn Google +1 0 Comments Print QUEUEQ..Gemfields Plc (GEM), the biggest emerald producer, has received interest from jewelery retailers wanting to buy an equity stake since it announced the purchase of Faberge Ltd. last month. “I’m talking industry champions, national champions and significant global institutions who suddenly realize this is fantastic,” Ian Harebottle, CEO of the London-based mining company, said in a Dec. 7 interview in Lusaka, Zambia’s capital. Gemfields, which mines emeralds in the southern African nation, plans to double its production of the green gems to 4 million carats over the next five years, he said. The company may produce as many carats of ruby over the same period, Harebottle said. Gemfields wants to use Faberge to promote colored gems and increase demand for the stones it mines, growing their market share in the jewelry industry. Shareholders will vote on the deal Jan. 7 at a meeting in London, Gemfields said in a statement. While the U.K.-listed miner has received interest from jewelry retailers from Canada to China, Hong Kong and the U.S., Gemfields is in no hurry to sell a stake, Harebottle said. “There’s no immediate need for cash,” he said, noting the $36.7 million the company had in the bank as of June 30. “It would have to add strategic value to the continued growth of the business,” for Gemfields to consider selling an equity stake, he said. The company isn’t in any talks regarding that, Harebottle said. Securing Supplies Jewelry makers such as Canada’s Harry Winston Diamond Corp. (HW) and Tiffany & Co. (TIF) have been cutting deals with mines to secure supplies of rough diamonds. Chow Tai Fook (1929), the world’s biggest jewelry retailer by market value, signed a two-year supply agreement with Russian diamond miner Alrosa AO on Nov. 13. Gemfields, listed on London’s Aim market for smaller companies, plans to graduate to the main market by the end of next year, he said. The move would provide greater exposure to investors. The company is finalizing a contract with a “Hollywood starlet” and will in March announce who will become the face of Gemfield’s colored stones, as it seeks to replicate the marketing success De Beers (AAL) enjoyed after Marilyn Monroe recorded “Diamonds are a Girl’s Best Friend”. Faberge was founded in 1842 in St. Petersburg, and became jeweler to the Russian Imperial Court. The company, famous for the jeweled eggs it made for Russia’s ruling family, may open two stores in as many years, with China, Russia and India being possible hosts, Harebottle said. Anyone think this is a good time to buy, or is it likely to drop further until the voting on 7th January?
Surely GEM is one of the most profitable companies on AIM? My other holding-MONI- has yet to break even and has reached similar heights as this. As I understand it GEM has no debt, circa $90m in the bank, and yet it drops 10% in a couple of days! I thought we would be seeing 50p by now. Is there another auction in November?