31 March 2015

Gemfields limited in Zambia

08/04/2013 Harriet Russell

Actress Mila Kunis is the face of the Gemfields brand

Actress Mila Kunis is the face of the Gemfields brand

Gemstone specialist Gemfields (LON:GEM) will see its emerald operations affected by government decisions to limit international sales in Zambia.

The Zambian government has revealed it intends to ban the company from selling its gemstones outside of the country, therefore preventing Gemfields from achieving the best price for its emeralds in foreign markets.

Gemfields' principal asset, the Kagem emerald mine is located in northern Zambia, of which the government owns a 25 per cent stake. While the current embargo only relates to emerald sales, the government has warned that it could extend the ban to all gemstones, which would see the company's amethyst mine in the south of the country also negatively impacted.

The government has claimed the sale of Zambian gemstones into foreign markets has caused 'capital flight' but Gemfields has retaliated by insisting it remains committed to repatriation of auction proceeds to Zambia and keeping transparency in these actions.

It regularly publishes auction information, including unit costs and revenue generated.

Chief executive of Gemfields, Ian Harebottle, has claimed any developments to the ban would see the 'health of the sector' potentially 'endangered', adding that the company's goal was only to see Zambian emeralds 'compete on a world stage'.

He concluded that this would no longer be possible should auctions only be allowed to take place within Zambian borders.

Shares in Gemfields fell more than 12 per cent this morning to 26p, valuing the company at £160.6 million.

Tags: Emeralds, Mining, Zambia

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2014

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1,044 AIM-quoted companies. The full report is available to order for £365 + VAT. Click here for more info

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

The company received the proceeds as part of a wider consortium

652k on the Horizon 26/03/2015

Horizon Discovery Group (AIM:HZD), a provider of research tools and services for genomics research, has received £652,000 as part of a consortium. 

Tags: Biotech, Fundraising

Pantheon drilling ahead 26/03/2015

AIM-quoted US-focused oil and gas play Pantheon Resources (AIM:PANR) has updated investors on its latest activities.

Tags: Oil and gas, USA

Petroceltic leaving Kurdistan 26/03/2015

Irish oil explorer Petroceltic International (AIM:PCI) reported that it was ending its involvement in the Kurdistan region of Iraq.

Tags: Iraq, Oil and gas

Plexus Holdings announces Chinese deal 26/03/2015

Scottish oil technology specialist Plexus Holdings (AIM:POS) has announced a partnership with Chinese oil services provider Yantai Jereh.

Tags: China, Oil and gas

AFC wins German permit 26/03/2015

Alkaline fuel cell developer AFC Energy (AIM:AFC) has won a permit to build the 'world's first alkaline fuel cell facility' in Germany.

Tags: Germany

Karelian makes major find 20/03/2015

Finland-focused Karliean Diamonds (AIM:KDR) has discovered a potential new diamond source.

Tags: Diamond mining

More News