UK 05:43 Saturday, 7 November 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Emerald and ruby supplier Gemfields (GEM) is preparing for a pre-Christmas auction in Singapore of rubies and corundum from its 75%-owned Montepuez operation in Mozambique in the wake of raising $19.2 million (12.8 million) revenues at its latest emerald and beryl auction in the Indian city of Jaipur. Now valued at £228.5 million, the AIM-quoted company, whose shares have fallen from a summer 12-month peak of 68.25p to 40.25p now, says the Jaipur auction, of predominantly lower-quality stones from Gemfields’ 75%-owned Kagem mine in Zambia, raised a record amount in that category since the company started the auctions in 2009.
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Comments
J Deakin
The SP has been getting hammered since Gemfields announced FY results, possibly as a result of profitability being down and other luxury brands having a tough time. Looking through the accounts, it seems to me that the drop in profitability is related to investment. This is shown by the increase in output at the major mines, an increase of Faberge inventory and spending on PPE. Intangibly Faberge also won the Grand Prix d’Horlogerie de Genève, which is incredible given the period of time in Gemfields ownership.
The current SP weakness is disappointing but in the long run Gemfields is delivering on it’s stated objectives (I’ve been a holder for over 3 years).
Robert I agree if the auction results are positive next month, perhaps the market will wake up to fact that gemstone demand has not fallen off a cliff like other luxury products (Burberry etc).