Gemfields shares hit record low after CEO exit

SHARES in Gemfields, the JSE-listed coloured-gemstone producer, sank to an all-time low this week, deepening investor unease about the company’s turnaround prospects following the exit of its long-serving CEO.The stock dropped as much as 31% intraday on Monday before ending 17.5% lower at 66c, its steepest single-day fall since April last year, reported Business Day on Tuesday. This follows a roughly 12% slide the previous week when Sean Gilbertson’s departure as CEO was announced.The counter has fallen dramatically from its record peak of more than R12, achieved when the business traded as Pallinghurst Resources. Since rebranding to Gemfields in 2018, its best price has been R4.34, reached in 2023, the newspaper said.Conflict in Mozambique and a punitive Zambian tax regime have combined to erase 80% of the group’s market value over three years, despite efforts to shore up its balance sheet, including a $30m rights offer priced around R1.07 a share last April and the $50m disposal of its Fabergé jewellery business months later. Both moves were meant to fund the Kagem emerald mine in Zambia and the Montepuez ruby operation in Mozambique.Zambia’s 15% gemstone export levy, though since suspended, forced a five-month production halt in 2025 that hit sales hard. In Mozambique, unrest linked to the 2024 elections has intensified, with nearby village attacks recently halting operations for almost a day, while roughly 700 illegal miners attempt to breach the site daily.Interim results, expected within three months, will test Gilbertson’s pledge to prioritise debt reduction, after 2025 annual results showed a narrower headline loss of 21.6c a share, down from 39.1c.The post Gemfields shares hit record low after CEO exit appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com