Nigeria resumes mining in Zamfara state on improved security
Nigeria has lifted a ban on mining exploration in the northwestern state after a five-year suspension.
Shares in precious gemstones miner Gemfields (LON: GEM) (JSE: GML) jumped almost 10% in early trading in London for unclear reasons, which the company described later as “non disclosable unpublished price-sensitive information”.
The company, which returned to the London Stock Exchange’s market for juniors last year, revealed it expects to announce sales of $95 million for the first half of 2021, up 533% from the same period in 2020.
Gemfield’s revenues fell 83% to $15 million last year, due to impact of the pandemic on the diamonds and gemstones market.
The emeralds and rubies miner said it expects to announce sales of $95m in first half of 2021, up 533% from the same period in 2020
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.
