Gemfields comments on share price spike, expects solid interim revenue

9th July 2021 By: Marleny Arnoldi - Deputy Editor Online

Aim- and JSE-listed Gemfields says there is no disclosable unpublished price-sensitive information relating to the company at the moment, following an increase in the company’s share price over the last week.

Notwithstanding the welcome increase in the company’s share price, Gemfields still trades at a discount to its net asset value, it adds.

The Gemfields share price jumped from 8.88p on July 1 to 10.13p by July 7 and further to 13.25p by July 9.

The company says its operations in both Mozambique and Zambia remain materially uninterrupted and it expects to hold three more gemstone auctions this year.

Moreover, Gemfields expects to announce a robust financial performance for the six months ended June 30, as a result of strong gemstone sales at auctions held in March and April, coupled with cost-cutting measures that were in place up to the end of March.

Revenue will likely be about $95-million.

Gemfields holds 75% of the Kagem emerald mine, in Zambia, and a 75% interest in the Montepuez ruby mine, in Mozambique.