Profile image - Gemfields group, Kagem - 16072019 - JPG

Gemfields Group


ZAR1698.1m market cap

ZAR1.45 last close

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.

Investment summary

Although Gemfields has been unable to hold full gemstone auctions since February, successful November and December emerald mini-auctions generated US$10.8m in sales. Full in-person auctions are planned for March 2021 if travel restrictions lift by then. Gemfields has taken steps to preserve cash, including keeping both mines suspended, and we now forecast end 2020 net debt of US$11.6m (from US$10.5m previously).

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2018A 206.1 58.9 (22.5) (2.6) N/A N/A
2019A 216.2 80.9 55.9 1.3 7.3 N/A
2020E 30.1 (51.2) (94.2) (5.9) N/A N/A
2021E 183.5 29.2 1.8 (1.6) N/A N/A
Industry outlook

Gemfields generates more than 90% of its revenues from six emerald and ruby auctions annually. Auctions rely on customers travelling from multiple countries to inspect the stones and determine the value of their bids. For Gemfields to hold auctions the lifting of worldwide travel restrictions is required to allow movement of both stones and customers between countries.

Last updated on 14/01/2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 11.6
Forecast gearing ratio (%) 2
Price performance
Actual 0.0 0.0 (25.6)
Relative* (6.4) (13.3) (32.6)
52-week high/low ZAR2.1/ZAR1.1
*% relative to local index
Key management
Martin Tolcher Chairman
Sean Gilbertson CEO
David Lovett CFO