London-listed emerald miner Gemfields today said it wants to extend its rainbow of stones by expanding into sapphires.
The group, whose brand champion is Hollywood actress Mila Kunis, said it plans to purchase a licence to a sapphire mine in the coming year to add to its emerald, ruby and amethyst capacity.
“The demand for coloured gemstones is insatiable,” said chief executive Ian Harebottle. “We want the full traffic lights of coloured stones.” The company, which last year bought jewellery brand Fabergé, today reported weaker-than-expected 2013 results, with earnings of $1.2 million (£741,000). This was after it held fewer gemstone auctions due to the Zambian authorities insisting they be held there rather than in the planned Singapore.
Harebottle said: “We did have a misunderstanding with our partner, the Zambian government. But our relationship is definitely better now.”
Gemfields' Oriental Mining subsidiary has exploration licences in Madagascar to search for new gem deposits and it is completing due diligence on the sapphire licences in India. The group also plans to up its emerald capacity via licences on other mines in addition to its 75 per cent-owned Kagem mine in Zambia.
Charlie Long, mining analyst at Sanlam Securities, said: “Despite disappointing financial results, operational performance was strong. The confusion over exporting stones from Zambia remains a problem but assuming this is resolved, Gemfields should trade much more strongly in 2014.”
