Gemfieds Group responds to share price movement
LONDON – Amid accusations of insider trading, Gemfieds Group notes the recent increase in its share price and confirms that there is no disclosable unpublished price-sensitive information relating to the Company at the present time. The share price shot from 175c to 250c last week.
The Company’s operations in both Mozambique and Zambia remain materially uninterrupted. The Company is closely monitoring the global Covid-19 situation and presently expects to hold three further gemstone auctions this year.
Gemfieds Group expects to announce robust financial performance for the six months ending 30 June 2021 as a result of the strength of the gemstone auctions held in March and April 2021, combined with the cost cutting measures which were in place until end March 2021 (including the suspension of principal operations at its emerald and ruby mines).
Gemfieds Group expects revenue to be in the region of USD 95 million for the six months ending 30 June 2021. The Company expects to announce its half year results by the end of September 2021.
Notwithstanding the welcome increase in the Company’s share price, Gemfields still trades at a significant discount to its net asset value. In addition, the Company notes that, at its recent VAGM on 24 June 2021, shareholders rejected a resolution that would have granted the Company’s board consent to issue at its discretion up to 5% of the Company’s share capital at the higher ZAR 3.00 per share and the then prevailing 30-day volume-weighted average price. The ZAR 3.00 per share floor price proposed in that resolution remains a significant premium to the present closing share price of R2.50.