20 May 2014

Zambia: Gemfields Secures U.S. $15 Million Capital

BRITISH owned mining conglomerate Gemfields Plc, has secured a US$15 million working capital facility from global partners to improve production capacity and strengthen the company's cash flow.

Gemfields chief executive officer Ian Harebottle said the 12-month facility was available in two separate tranches, the first worth $10million was accessible between April 17, 2014 and December 30, 2014.

"The second tranche of $5million was accessible between July 15, 2014 and November 30, 2014, with both tranches repayable, together with the accrued interest on April 30, 2015," he said.

This is contained in the latest issue of the Solwezi Today magazine made available in Ndola yesterday.

Mr Harebottle said the facility had a three-month facility dollar London Interbank offered interest rate of plus four per cent a year, an arrangement fee of two per cent, without commitment fee.

He said as at December 31, 2013, Gemfields, which owns Kagem Mining Limited in Lufwanyama District had cash in hand of $14.8 million, with a February auction of predominantly higher-quality emeralds achieving record revenues of $36.5 million.

Mr Harebottle said the company had two further auctions scheduled for the current financial year, ending June 30, the first of which was an auction of traded rough emeralds in India and the second, an inaugural auction of rough rubies in Mozambique.

"Prevailing market indicators remain robust and we have already beaten Gemfields' best revenue financial year, given that to-date, auction revenues stand at $29.9 million, with total sales from rough emerald and beryl having reached a $96.4 million," he said.

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