Gemfield Group’s platinum group metal (“PGM”) investment, an indirect stake of 6.54% in Sedibelo Platinum Mines Ltd (“Sedibelo”), remains unlisted with no market price readily available to value the holding.
Sedibelo dispatched 51,861 4E PGM ounces during the first six months of 2021, up 2% on the comparative period in 2020. A significant increase in the 4E PGM basket price has helped drive a 72% increase in revenues to USD163.8 million for the six months to 30 June 2021, with healthy profit margins.
The Group’s investment in Sedibelo remains a non-core asset and an orderly disposal continues to be a near-term strategy. The same independent third party who assessed the Group’s carrying value of Sedibelo at 31 December 2020 has been used to update the valuation at 30 June 2021.
Based on the results of the independent valuation, the GGL Board has applied a USD7.7 million fair value uplift for the period, bringing the carrying value for the Group’s 6.54% stake in Sedibelo to USD37.3 million. It is noted that 4E PGM basket prices have again declined since the period end.