Gemfields, which has emeralds business in Zambia, says it recently agreed a $15 million working capital facility with key shareholder Pallinghurst.
The 12-month loan, which can be drawn down in two tranches, would also be utilised for general corporate purposes, helping to smooth the company's centrally available cash flow given the intermittent nature of revenues from its gemstone auctions and the ongoing development of its ruby, rough gemstone trading and Fabergé businesses.
"We are pleased to have agreed this financing facility with our key shareholder, Pallinghurst. We have been interested in securing a working capital facility for some time now and, having considered a number of offers from various banks, we have now secured what we believe to be the most appropriate funding option for the company,” said company chief executive Ian Harebottle.
Meanwhile, the Gemfields boss said he was looking forward to the inaugural auction – next June - of rough rubies from the Montepuez ruby deposit, in Mozambique.
In addition, the company would host an auction of traded rough emeralds, sourced from the open market in Jaipur, India.
“It remains a very exciting stage in Gemfields' development. While we have two further auctions scheduled for this financial year and prevailing market indicators remain robust, we have already beaten Gemfields' best ever revenue year given that year-to-date auction revenues stand at $92.9 million, with total sales from rough emerald and beryl having reached $96.4 million," he said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
