Gemfields seeking admission to London’s Aim market

Gemstone miner Gemfields intends to seek admission to trade on the Aim market of the LSE.

The company does not intend to raise capital in conjunction with the admission, which it expects will become effective on February 14.

The company, which has its primary listing on the JSE, and a secondary listing on the Bermuda stock exchange, says the listing on the Aim will allow it “to access greater liquidity and international investors”.

It will also allow UK investors access to a growing market and the opportunity to invest in a company “that is the world leader in the mining, grading, marketing and selling of precious coloured gemstones”, Gemfields said in a statement on Friday.

The additional listing follows after Gemfields has seen a consistent rise in demand and price for precious coloured gemstones and, according to CEO Sean Gilbertson, Gemfields “has been at the forefront of driving that increased awareness, confidence and transparency in the sector from both the market and the consumer”.

Gemfields’ ownership of the brand, Fabergé, further offers the group direct insight into the perception and pricing of precious coloured gemstones from a consumer perspective.

The company’s auctions of both rubies and emeralds during 2019 demonstrated robust demand and pricing and Gemfields continued to see increasing numbers of participating customers, further validating its “pioneering” auction and grading platform, Gilbertson added.

The past decade has seen world record prices at auction houses for cut and polished emeralds and rubies, surpassing the price of colourless diamonds on a per carat basis. Prices realised at Gemfields’ auctions of higher-quality Zambian rough emeralds have increased by over 1 500% over the same period, according to the statement.

The group holds controlling interests in various gemstone mining and prospecting licences in Zambia, Mozambique, Ethiopia and Madagascar that form part of the company’s wider strategy of delivering long-term value to its shareholders.

A predecessor company, also called Gemfields, and which owned the company’s emerald and ruby mines in Zambia and Mozambique, was listed on the LSE’s Aim until July 2017 when it was bought out by Pallinghurst Resources, which was renamed Gemfields Group in July 2018.