Profile image - Gemfields group, Kagem - 16072019 - JPG

Gemfields Group

JP: GML

Market CapZAR3157.6m

Last Close ZAR2.7

Gemfields is a world-leading supplier of responsibly sourced coloured gemstones. It owns 75% of Montepuez Ruby Mining in Mozambique, 75% of the Kagem emerald mine in Zambia, the Fabergé jewellery business and an investment in Sedibelo Platinum.

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Investment summary

On 12 August Gemfields announced exceptional results from an online auction of commercial quality emeralds from Kagem which set new all-time records for a commercial quality emerald auction both in terms of total revenue of US$23.1m and also average revenue per carat of US$6.61/ct. Production at both Kagem and MRM resumed in March 2021 and has ramped up rapidly.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 216.2 80.9 55.9 1.3 13.5 2.7
2020A 34.6 (30.0) (84.7) (6.1) N/A N/A
2021E 196.4 56.2 32.5 0.4 43.9 3.7
2022E 239.8 78.6 49.7 1.2 14.6 2.6
Industry outlook

Gemfields’ online mini-auction process (as customers cannot travel internationally to auctions as usual, stones have been shown in Tel Aviv, Dubai and Jaipur followed by online auctions) has been a resounding success. The US$23.1m from the latest commercial quality auction adds to the US$90.3m generated from a high quality ruby and a high quality emerald auction in H121. Not only does this shore up Gemfields’ balance sheet but the success of the auctions is also a very clear indication of the strength of market demand for the company’s emerald and ruby production.

Last updated on 02/12/2021
Content on Gemfields Group
Gemfields Group – A new strategic shareholder
Metals & mining | Update | 30 September 2021
green-gem-stone-highres
Coloured gemstones
Metals & mining | Edison Explains | 19 May 2021
Gemfields Group – Maxi-mini auction results
Metals & mining | Update | 29 April 2021
green-gem-stone-highres
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (US$m) 8.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.0) 18.9 86.2
Relative* (14.7) 11.9 50.4
52-week high/low ZAR3.3/ZAR1.2
*% relative to local index
Key management
Martin Tolcher Chairman
Sean Gilbertson CEO
David Lovett CFO