Gemfields, a precious gemstones miner, had its stock spiked about 10% in early London trading for unknown reasons, which the firm later termed as “non-disclosable unpublished price-sensitive information.”
The company, which re-entered the London Stock Exchange’s juniors market last year, said it aims to make $95 million in sales in the first half of 2021, up 533 per cent from the same period in 2020.
Due to the impact of the pandemic on the diamond and gemstone markets, Gemfield’s revenues dropped 83 per cent to $15 million last year.
The company’s update comes as the share price has climbed nearly 50% since the start of July. They closed at 8.88p on July 1, 10.13p by July 7 and 12.50p on July 9.
The group said that no information that could explain this increase has been withheld, thus ruling out any manipulation.
The miner, which has operations in both Mozambique and Zambia, said all of its mines are producing at usual rates. It also said it expected to hold three more gemstone auctions this year.
Montepuez, in Mozambique, is the world’s richest known ruby mine, and the only asset that generated a profit for Gemfields last year.
Gemfields has stepped up efforts to market its emeralds and rubies in China after a report highlighted the “huge potential” for ethically sourced gems in that market.
Top diamond miners are already stepping up efforts in that direction. The Natural Diamond Council (NDC), which groups the world’s seven leading producers, launched in May its first advertising campaign targeting the Asian and US markets.
NDC also inked a deal with China’s top jewellery retailer Chow Tai Fook to boost demand for mined rocks.