The Government of Zambia on January 1 suspended a 15% export duty on gemstones after the tax that was intended to raise more revenues ended up undermining production. The country also specified that the export duty would not apply to diamonds, which seems superfluous as the country is not a member of the Kimberley Process and thus has no 'licence to operate' in the rough diamond trade.
The world’s largest coloured gemstone producer, Gemfields, yesterday announced it has established a joint venture with Mwiriti to explore for gold and assorted minerals in Mozambique. Mwiriti is Gemfields’ existing partner in Montepuez Ruby Mining (MRM) and holds 12 greenfield licences located as little as 20 kilometres from MRM’s existing operations, including an extension of the known Montepuez ruby belt with both secondary gold incidence and primary corundum mineralisation having been observed.
Gemfields reported a $60.4 million net loss for 2018, compared with a $45.1 million profit in 2017, despite achieving record revenues for the year of US$206 million. The company attributed the loss to the impact of a new tax regime in Zambia and and a costly court case that ended in a settlement. Gemfields' share price endured a disappointing 12 months, falling 40% by year-end.
Gemfields has announced the discovery of ‘Inkalamu’ – the ‘Lion Emerald’ – a 5,655 carat Zambian emerald crystal with remarkable clarity and a perfectly balanced golden green hue. Inkalamu was discovered at Kagem, the world’s largest emerald mine, which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia (which belongs in turn to the Government of the Republic of Zambia).
Last week at the Kimberley Process Intersessional meeting in Antwerp, during the Special Forum, "Innovation and Technology: State-of-the-art in the rough diamond trade", Daniel Nyfeler, Managing Director at Gübelin Gem Lab gave a presentation on the company's 'Emerald Paternity Test'.
Pallinghurst has announced the results of an auction of higher quality rough emeralds held by Gemfields plc (“Gemfields”, which is 100% owned by Pallinghurst) - its first emerald auction since Pallinghurst took over the company - held in Lusaka, Zambia, from 2 – 5 October 2017.
Palllinghurst Resources, following its recent takeover of Gemfields, has appointed Sean Gilbertson as new CEO for the colored gemstone miner as it commences the acquisition process. The move follows the resignation of Gemfields' non-executive directors, including that of CEO Ian Harebottle, who has held the position for the last eight years. Harebottle, as well as the resigning board members, was highly crititical of the takeover, saying it "significantly undervalued" the company.
South African equity group Pallinghurst Resources Ltd. on June 26 announced it has received 96% of shareholder support in its quest to move ahead with a bid to fully acquire Gemfields, in which it is already the largest investor; more than 75% of Gemfields shareholders have given their acceptance for the offer. Last week, Pallinghurst lowered the minimum number of acceptances from shareholders of Gemfields Plc on its takeover offer to 60 percent, from 75 percent, making its offer unconditional. This move came after China's Fosun International raised its offer for the gemstone company.
China's Fosun International has increased its offer for UK gemstone miner and Fabergé owner Gemfields to $323 million (£256 million), and Gemfields is encouraging its minority shareholders to accept the takeover bid despite considering it unreasonable, in order to avoid an even more “derisory” buyout bid from its largest shareholder, Pallinghurst Resources. Last month, South African private equity group Pallinghurst made an unsolicited offer of 37.1p per share for the 62 per cent of Gemfields that it does not already own, offering investors no premium on the gemstone miner’s share price. In
London-listed gemstones miner and Fabergé owner Gemfields said it has received an offer for the company from Chinese conglomerate Fosun International Ltd. Fosun made an initial proposal regarding a possible cash offer for the British precious stones miner, thereby emerging as a rival to Pallinghurst, whose recent takeover bid was considered to "significantly undervalue" the company. Gemfields said it was, “actively engaged in discussions with Fosun Gold regarding a possible competing offer for the entire issued and to be issued share capital of the company.”
Pallinghurst resources Ltd., a private equity firm focused on mining, who already own 47% of Gemfields Plc, made an offer to acquire the remaining 53% of the gemstone miner in a bid to restructure the company and make it more profitable. Pallinghurst offered investors nearly two shares in Pallinghurst for each share in the colored-stone producer, valuing the miner at $275.6 million. Gemfields’ board has advised its shareholders to not take any action at the moment while they review the offer.
Gübelin Gem Lab introduced the “Emerald Paternity Test”, a technology developed for tracing the origin of emeralds to their exact mine. They were able to do this by using nanotechnology to mark stones with an invisible imprint that is accessible at any stage of the supply chain. The technology is a “true game-changer for the colored-gemstone industry,” said the Switzerland-based laboratory.
Hollywood's stars got their night to shine on the red carpet at the 89th annual Academy Awards, but their stunning diamond jewelry perhaps shone even brighter. The showstopper was the pair of statement earrings (photo) by Chopard featuring a 25-carat pear-shaped D-flawless diamond and 26-carat heart-shaped D-flawless diamond, 4.55-carats of pear-shaped diamonds and 4.35-carats of brilliant-cut diamonds set in 18k white ‘Fairmined’ gold from the “Garden of Kalahari Collection", worn by Charlize Theron.
The World Jewellery Confederation (CIBJO) is celebrating its 90th anniversary this week in Armenia. Describing itself as the “United Nations of the jewellery business,” CIBJO represents the interests of all individuals, organizations and companies earning their livelihoods from jewelry, gemstones and precious metals. CIBJO is the oldest international confederation of national jewelry trade organizations. Its purpose is to encourage harmonization, promote international cooperation in the jewelry industry and to consider issues which concern the trade worldwide.
Gemstone miner Gemfields reports a jump in revenue to $193.1 million for the year ended June 30 from $171.4 million a year before. Meanwhile profit after tax almost doubled from a year before to $23.5 million from $12.3 million. The firm had cash holdings of $41.5 million compared with $28.0 million and the cost of its gemstone and Fabergé inventory was $107.2 million from $101.1 million last year.
Gemfields has announced the finalization of four debt financing facilities for a total of $65 million, which are intended to provide financing for expansion plans to increase its ruby and emerald production. The loans entail a $45 million facility for the ruby operations, Montepuez Ruby Mining Lda, of which Gemfields owns 75%.
Gemfields plc reports record auction revenues of $44.3 million from a sale of rough ruby from the Montepuez mine in Mozambique. The June 13-19 auction in Singapore is the last auction the miner has planned for this financial year. The average realized price of the goods sold was $29.21 per carat, with 1,516,459 carats sold – 95% by weight and 98% by value – out of a total of 1,601,145 carats offered.
Gemfields has announced that it earned $14.3 million from its auction in Jaipur, India of predominantly lower quality rough emerald extracted by Kagem Mining Ltd (75% owned by Gemfields and 25% by the Government of the Republic of Zambia) in Zambia. The auction saw 3.67 million carats of lower quality emerald extracted from Kagem placed on offer, with 14 of the 18 lots offered being sold, generating auction revenues of $14.3 million. Gemfields claims that the auction represents a new record of $5.15 per carat for lower quality auctions.
Gemfields has named Sally Morrison director of marketing and sales, Americas. She was until recently the managing director of marketing at the Diamond Producers Association which aims to promote diamonds generically. She previously held senior roles with A Diamond Is Forever, Forevermark and the World Gold Council. Gemfields CEO Ian Harebottle said that Morrison's role "will be pivotal as we continue to expand and the U.S. announces several new marketing strategies.”
Gemfields' auction of mostly higher quality rough emeralds from Kagem Mining Ltd from March 30 to April 3 in Lusaka, Zambia, posted auction revenues of $33.1 million, and a new record price per carat of $70.68 for higher quality auctions. Of the 558,000 carats offered for sale, 469,000 carats were sold (84%). The 21 Kagem auctions held since July 2009 have generated $412 million in total revenues. The $70.68 price is in stark contrast with the results of the first auction of Kagem goods of $4.40 per carat in July 2009.
In his latest blog, Leibish Polnauer, President of Leibish & Co. Fancy Color Diamonds, speaks about the importance of corporate social responsibility and the firm's association with colored gemstone miner Gemfields, which he says is the leading supplier of responsibly mined gemstones and aims for its operations to have a minimal on the environment as well improving the lot of people in the surrounding areas. Meanwhile, its pink diamonds all come from Rio Tinto’s Argyle diamond mine since the firm has high standards.
Emerald and ruby miner Gemfields has released its results for H1 2015 that ended December 31, reporting revenue dropped 9.1% to $94 million comparted to the first half in 2014. Profit after tax fell 65% to $8.2 million, compared to $23.2 million a year previously. Emerald and beryl production from the Kagem mine in Zambia surged 30% to 15.7 million carats, while production of ruby and corundum from the Montepuez mine in Mozambique fell 67% to 2.1 million carats.
The Wall Street Journal writes that Gemfields PLC - a London-based company with the world’s largest emerald mine near Zambia’s border with the DRC - is "hoping to generate diamond-caliber demand for its emeralds and rubies." The Zambian operation has helped the company dominate a fast-growing and increasingly lucrative sector. Gemfields owns 75% of the Kagem mine, with the Zambian government owning the remainder.
Kieron Hodgson, commodities analyst for British corporate stockbroker and investment bank Panmure Gordon, articulates their bullish position on diamond mining stocks and prices for 2016 and beyond.
Gemstone miner Gemfields reported revenues of $28.8 million at its fifth auction of rough rubies and corundum from the Montepuez mine in Mozambique at an average price of $317.92 per carat. The Singapore sale, held December 14 to 18, saw 36 companies placing bids with 45 of the 49 lots offered being sold, The five auctions of Montepuez goods held since June 2014 have generated $150.8 million in aggregate revenues. The miner's next auction will be of predominantly higher quality emerald from the Kagem mine in Zambia and is due to take place next March.
Gemfields announced the results of its auction in Jaipur, India of predominantly lower quality rough emerald extracted by Kagem Mining Ltd (75% owned by Gemfields and 25% by the Government of the Republic of Zambia) in Zambia. The company states it achieved record auction revenues for lower quality auctions of $19.2 million and set a new record of $4.32 per carat for lower quality auctions.
Emerald and beryl production from colored gemstone miner Gemfields' Zambian unit Kagem Mining Limited jumped to 7.5 million carats in the firm's first fiscal quarter to September 30. However, ruby and corundum output from the Montepuez mine in Mozambique in which it has a 75-percent holding, dropped to 500,000 carats. But the miner pointed out that the volume of higher-quality rubies recovered soared 96 percent.
Gemfields financial year 2015 saw revenue growth of 7% to $171 million, and saw EBITDA advance 8.6% to $64.4 million. Profit after tax fell by 25% to $12.3 million. The custodian of the gemstone industry strengthened its position on both sides of the supply and demand curve through a range of initiatives to lift the profile of the gemstone market, which includes emeralds and rubies.
Emeralds and rubies miner Gemstone miner Gemfields said an independent report by consultancy firm SRK shows that its 75% owned Kagem mine in Zambia is now set to produce 1.10 billion carats over a 25-year mine life, considerably more than initially forecast. The total indicated and inferred mineral resources of emeralds and beryl at the mine is now estimated at 1.8 billion carats. Kagem is forecast to produce 44.7 million carats per year on average over its mine life.
Global colored gemstones miner Gemfields has further expanded its hold on the market with the acquisition of controlling interests in two emerald projects with operations and prospects in Colombia. The firm already has majority stakes in emerald, ruby and amethyst operations in Zambia and Mozambique.
Gemfields said a sale of emeralds and amethyst in Singapore met expectations, with 37 companies placing bids in the miner's first auction of its financial year. The auction followed seven successive emerald auctions held in Lusaka, and marked the return of Zambian emerald auctions to a wider international market.
The miner's 75-percent owned Kagem emerald mine in Zambia produced 8.1 million carats of emeralds and beryl in the quarter ended June 30, the full 2015 financial year seeing output of 30.1 million carats of emerald and beryl. That compares with 6.2 million carats and 20.2 million carats, respectively last year.
Gemstone miner Gemfields plc plans to increase the amount of cut and polished gemstones from polishing firms, mostly in Jaipur, India's colored gemstone center, in a bid to enhance liquidity support. The move was announced by Gemfields COO Dev Shetty who said that the decision was taken to support the manufacturing sector of the colored stones industry, which typically lacks access to bank funding and finds it difficult to participate in Gemfields' rough stones auctions.
Precious stones miner Gemfields has announced that an independent report has confirmed its majority-owned Montepuez ruby mine in Mozambique has enough reserves to last at least 20 years. According to the report, the mines indicated and inferred mineral resource stand at 467 million carats of ruby and corundum at a grade of 62.3 carats per tonne of ore. It also estimates probable ore reserves of 432 million carats at a diluted grade of 15.7 carats per tonne over 21 years.
Leading gemstone producer Gemfields reported $29.3 million in sales at its latest rough ruby auction which took place last week, with a highlight being the sale of a rare matching pair of rough rubies discovered earlier this year which together weigh 45 carats. The matching pair of rubies was purchased by renowned ruby house, Veerasak Gems of Thailand.