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Diamonds & gemstones

Gemfields Group returns to AIM after two and a half years

The emerald and ruby miner was taken private by its major shareholder in July 2017

Gemfields Group PLC (LON:GEM) has returned to trading on AIM after a two-and-a-half-year hiatus.

The miner of emeralds and rubies in Zambia and Mozambique was taken private under its old guise by Pallinghurst in July 2017 in a nil-premium, all-share offer.

Pallinghurst subsequently changed its name to Gemfields Group Ltd and, while it has a Johannesburg listing and a secondary listing on the Bermuda Stock Exchange, has decided to return to London’s junior market with gems prices at record levels.

The group’s Kagem mine in Zambia is estimated to provide more than one-fifth of the world's emeralds, while the Montepuez mine in Mozambique accounts for half of the world’s supply of rubies.

Gemfields also owns Fabergé, the jewellery company famous for its bejewelled eggs.

“Today's admission to the London market is an important milestone for Gemfields after a decade of growth in the demand and prices for precious coloured gemstones,” said chief executive Sean Gilbertson.

He said an AIM listing would improve share trading liquidity and widen the investor base.

In its last set of published results, Gemfields posted revenues of US$206mln and underlying profits of US$58.9mln for 2018.

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