Gemfields Group Limited (AIM:GEM) sees its 'Buy' recommendation repeated by Panmure Liberum, with a 13pence target price, after the miner’s year-end update, with the broker pointing to commissioning progress at its new ruby processing plant and signs of improved cash generation.
Panmure Liberum said commissioning of the second processing plant at the Montepuez Ruby Mine is expected to be completed “imminently”, adding that it is “being delivered materially on budget”.
The broker noted the plant has been operating through December and January, with the first PP2 rubies expected to reach the market at the February mixed-quality ruby auction, with results due in the last week of February.
On Zambia’s Kagem emerald mine, Panmure Liberum said Gemfields reported premium emerald recoveries in line with expectations since mining restarted in May 2025. It highlighted the discovery of ‘Imboo’, an 11,685-carat emerald sold in the August-September high-quality auction.
The broker also flagged US$128.5 million of total auction revenues reported for 2025 and net debt of US$39.20 million before US$20.50 million of auction receivables, or US$18.70 million after receivables. It did not change forecasts due to the unaudited nature of the figures.