Mozambique: IMOPETRO guarantees that there is fuel for 22 days
Gemfields Group confirms $30m rights issue
5:19 CAT | 14 Apr 2025
File photo: Gemfields
Gemfields Group Limited (AIM:GEM) has confirmed it has raised $30 million through a fully committed and underwritten rights issue.
The miner noted that it also secured the backing of its two largest shareholders which have agreed to ‘prefunding’ the rights issue, committing $13.4 million.
It follows a challenging phase of trading in late 2024 – with disruption in the emerald market, lower-than-expected ruby output, and weaker demand in luxury goods sector.
On Friday, in a short and objective trading update, told investors it is expecting a 7 cents loss per share for 2024. ‘Headline’ loss per share is anticipated at 2.1 cents per share.
“The proposed funding provides GEM with all its required working capital for 2025 whilst leaving enough headroom for completion of the second processing plant at MRM (3x production rate), which remains “materially on budget and on track for completion by the end of H1 2025,” Panmure Liberum analysts said in a note.
The stockbroker has retained a ‘Buy’ rating, with a 20p price target (versus a prevailing market price of 4.63p).
Gemfields shareholders will be required to vote on the proposed rights issue at an upcoming EGM.
In London, Gemfields shares were down 21% on Friday, changing hands at 4.63p each.
Source: Proactive Investors
Show comments
Also read
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.