DJ Gemfields Group (GML): Coloured gemstones' time to sparkle and shine
Edison Investment Research Limited Gemfields Group (GML): Coloured gemstones' time to sparkle and shine 17-Dec-2021 / 08:10 GMT/BST
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London, UK, 17 December 2021
Gemfields Group (GML): Coloured gemstones' time to sparkle and shine
Record Q4 emerald and ruby auctions, which generated USUSD37.8m and USUSD88.4m respectively, took Gemfields' total gemstone auction sales for 2021 to USUSD239.6m, an all-time high that exceeds the 2019 total of USUSD200.6m. The results indicate a strong market for coloured gemstones. Gemfields provides investors with unique exposure to this subsector and we have updated our forecasts to reflect stronger gemstone prices.
Updating our discounted cash flow (DCF) modelling for stronger pricing, we now calculate a DCF sum of the parts (at a 10% discount rate) of USUSD502m (previously USUSD367m). Within that, Kagem's attributable valuation has increased by 42% to USUSD256m and MRM's valuation by 19% to USUSD362m. Despite Gemfields' share price having increased by more than 100% this year, our valuation implies further upside potential. Click here to view the full report or here to sign up to receive research as it is published.
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December 17, 2021 03:10 ET (08:10 GMT)
