Gemfields primed to meet rising Asian demand, says JPMorgan
That's the view of broker JPMorgan Cazenove, which kept its ‘overweight' stance and 42p target price on the stock today.
The positive write-up comes after the company, which specialises in Zambian emeralds, raked in US$26.8 million at its Singapore rough emerald and beryl auction.
A total of 925,000 carats were offered and the majority, 902,000, were sold with 35 of the 37 companies in attendance placing bids.
The company achieved a price of US$29.71 per carat for the ethically stones output from its Kagem property in Zambia.
This was lower than the US$38.25 per carat achieved at its last Singapore auction, though the "mix and character" of the gems on offer this time around was "somewhat different", it said.
JPMorgan analyst Alexander Mees reckons there is a chance that future auctions may include other types of gemstone, perhaps even rubies from Mozambique.
"We believe Gemfields' current distribution channels have the potential to include a broader range of product," the analyst said.
He added that the demand for coloured gemstones is intensifying, with Asian powerhouses, such as China and Japan, driving the trend.
"We believe Gemfields is well placed to meet this demand with consistent, high quality supply," Mees concluded.
Shares climbed 3.9% to 41.55p today.
- Bauxite Resources公司收到大量持股通知
- ASF Group的联营公司将Dawson West热煤项目的资源储量提升至6.45亿公吨
- White Cliff Minerals公司于Aucu项目发现新的矿化带
- Bauxite Resources公司非执行董事卸任
- South Boulder Mines公司董事长购买市售股份
- Carbon Energy公司筹资500万澳元以推进天然气项目
- South Boulder Mines公司降低Colluli钾肥项目的运营开支和资本开支