Latest news with #Gemfields
Tatler Asia
26-05-2025
- Business
- Tatler Asia
Inside Chopard's Insofu high jewellery collection with a record-breaking Zambian emerald and ethical gold
In a market starved of sizeable gems, Chopard's new high jewellery collection is centred around a 6,225-carat Zambian emerald In recent years, sourcing emeralds of significant size—stones exceeding even 3 or 4 carats—and quality has become increasingly challenging. That's why the unveiling of Chopard's Insofu Collection feels like a seismic event in the world of high jewellery. But what sets this collection even further apart is its deep commitment to sustainability. By acquiring a rough emerald weighing 6,225 carats, named 'Insofu' after the word for 'elephant' in the Bemba language of northeastern Zambia, Chopard has taken control of the entire journey, from mine to finished jewel. This direct sourcing guarantees traceability, allows for responsible mining practices through the maison's collaboration with gem-mining firm Gemfields and supports education, healthcare and conservation projects in Zambia. Read more: Mother's Day 2025: 3 heartfelt stories of jewellery heirlooms inherited from mums Above Caroline Scheufele, Chopard's co-president and artistic director made the Insofu high jewellery collection with a 6,225-carat Zambian emerald (Photo: courtesy of Chopard)
News24
08-05-2025
- Business
- News24
Agrimark owner grows dividend; Maersk cuts its global container projection
In an extremely busy day for local corporate news, Agrimark and PEG fuel owner KAL upped its dividend despite some profit pressure, while Gemfields is picking up the pace again in Zambia. In international news, shipping group AP Moller-Maersk warned on Thursday that a global trade war and geopolitical uncertainty could trigger a drop in global container volumes this year, although it left its profit outlook unchanged. SA business Agricultural services and retail group KAL reported a slight slip in headline earnings to R310 million for its six months to end March amid a 2.6% fall in fuel volumes. But the group said while it saw less load-shedding related demand, it continued to outperform the rest of the industry. Profit from the Agrimark business segment, which includes the Agrimark retail branches, fuel filling stations, packaging distribution centres, New Holland agency services as well as fuel redistribution units, increased by 2.4%, while agri revenue - such as grain handling - growth was strong, with all sectors in which it operates performing well, except for the below-average 2024 wheat harvest. But the group remains bullish about its prospects, including due to Easter holidays falling in its second half, and it upped its dividend by 3.7% to 56c (R41.6 million. 'KAL Group has grown tenfold over the past 14 years. To put it in perspective – fourteen years ago, we made just 10% of what we've reported this half. That kind of growth, even in a flat period, shows that our business remains solid,' said CEO Sean Walsh. Ruby and emerald miner and auctioneer Gemfields announced that its Kagem emerald mine in Zambia which is 25% owned by that country's government, will 'shortly' recommence a programme of focused open-pit mining to recover more premium emeralds. Kagem had suspended all mining from 1 January 2025 to focus on processing ore from its significant ore stockpile utilising the upgraded processing plant. Emerald production from the processing plant in 2025 so far, in terms of carats recovered, has been in line with the expectations, it said, producing a lower proportion of higher-quality or premium emeralds than direct open-pit mining methods. The decision to recommence full-scale mining will continue to be assessed as market conditions develop, it added. Anheuser-Busch InBev reported that its brands took market share from competitors in South Africa, with Corona and Stella Artois seeing solid sales growth in the country in the first quarter. Still, the Belgium-headquartered giant reported a volume decline of 'low single digits' (below 5%) in South Africa, where its brands include Castle Lager, Carling Black Label, and Flying Fish. Along with others in the industry, the quarter was affected by the late Easter holidays, which this year fell later in April. Its 'Beyond Beer' brands – primarily Brutal Fruit – saw volume growth of mid-single digits, while Corona and Stella Artois volumes were up in the low-teens (10% to 14%). State-owned chicken producer Daybreak Foods says it is considering business rescue, a day after officials from the National Council of Societies for the Prevention of Cruelty to Animals (NSPCA) said they were forced to cull 350 000 starving chicks. Daybreak said that significant financial constraints were affecting its operations, meaning it could not afford feed and was struggling to pay suppliers and staff salaries. It has requested funding from the state-run asset manager, the Public Investment Corporation (PIC). Workers at Daybreak's facilities in Limpopo told News24 they were on strike due to the non-payment of salaries, meaning they could not make rental payments, cover debit orders, or pay for scholarships. Daybreak said it could not commit to a 'specific date for employee salary payments' as it was awaiting a response from the PIC regarding the funding request. Earlier this week, the NSPCA said it had been forced to cull 350 000 starving chicks at contract farms that raise them for Daybreak. Many had resorted to cannibalism in a desperate bid to survive. products or services,' Godongwana said in a written response dated 14 February this year. Paper, pulp and packaging group Sappi reported a disappointing second quarter amid depressed SA wood prices, as well as longer-than-expected local maintenance shuts. Sappi reported a loss of $20 million (R365 million) for its second quarter to end March from a profit of $29 million previously. Its adjusted earnings before interest, taxation, depreciation and amortisation fell 40.5% to $107 million. The group reported a financial hit of $13 million more than expected as a result of extended maintenance at its Saiccor and Ngodwana mills due to wear and tear on equipment being worse than expected, though these issues have now been resolved. It also saw a R307 million ($17 million) forestry fair value loss amid depressed SA wood prices. It also had to contend with uncertainty around tariffs, with China being the major demand source for the ingredients used to make textiles, but Sappi said it was still eyeing some positive trends, including continued demand for environmentally sustainable packaging. Naspers and Prosus, Africa's most valuable group of companies, said on Thursday that it expects to exceed its target for ecommerce profitability in its year to end March. In a letter to mark the 10 months since new CEO Fabricio Bloisi assumed the role, and ahead of full-year results to end March that are expected in June, Bloisi said the group will report adjusted earnings before interest and tax (aEBIT) of more than $430 million (R7.9 billion), ahead of a target of $400 million set in October. 'For (financial year 2026), I want to achieve at least the same level of incremental aEBIT. This is important because we should be measuring our results not by the millions, but by many, many billions and we will get there,' he said. Bloisi, who is the former CEO of iFood, the group's already profitable Brazilian delivery giant, has set a target of creating another $100 billion in shareholder value, aiming to leverage platform effects across the group - such as sharing best practice using innovative technology in customer service - but also through acquisitions. Sugar producer Tongaat Hulett announced that two shareholders launched a High Court application on 25 April seeking to declare that its business rescue plan alters the rights of shareholders and has not been finally or lawfully adopted. Tongaat said it would oppose the motion, which seeks to interdict any further implementation. Creditors had approved the plan of a consortium called Vision in early 2024, but shareholders shot down a plan that could have seen the sugar producer potentially remain listed, kicking off an asset sales process that has already received nods from competition authorities in SA, Botswana, Mozambique and Zimbabwe. Paper and packaging giant Mondi reported it that higher sales volumes and strong cost controls helped bump up its first-quarter profits. Underlying earnings before interest, taxation, depreciation and amortisation jumped almost 36% year on year to €290 million (almost R6 billion) in the three months to end March, with this profit measure excluding various items to reflect the cash-generating ability of the group. Strong demand also means the group expects price increases to benefit it in the second quarter. Nasdaq- and JSE-listed Lesaka Technologies reported a record performance in its consumer division helped it keep to its guidance for its third quarter, and it's confident enough to expect a profit next year as well. Lesaka, which has been growing rapidly since rebranding from Net1 UEPS in 2022, reported its loss jumped to R404 million from about R76 million in its third quarter, weighed down by about a R311-million hit to non-core asset Mobikwik, an Indian payments firm which listed in that country late last year. However, revenue was within guidance, though it dipped, while adjusted earnings before interest, taxation, depreciation and amortisation (ebitda) improved 29% in rand terms to about R237 million, in line with guidance. The group also said it expects net income attributable to shareholders to be positive in 2026, though this excludes possible acquisitions, while its guidance for 2026 implies an about 42% rise in adjusted ebitda at the midpoint. It has guided as much as R1 billion of this profit measure for 2025 and R1.45 billion for 2026. Industrial group enX flagged a between 71% and 81% fall in headline earnings per share for its six months to end February, when it also expects to report a basic loss per share of as much as 48c. Revenue from continuing operations is expected to decrease by approximately 10% mainly due to lower demand related to minimal loadshedding, it said, while it also booked an impairment related to its disposal of its lubricant interests. Stellenbosch University has appointed Professor Reza Daniels, Director of the Southern Africa Labour and Development Research Unit at the University of Cape Town, as the new Dean of the Faculty of Economic Management Sciences (EMS). He will start his term on 1 November 2025. Daniels brings a wealth of experience in senior leadership, not only within the higher education environment but also within the private sector, the university said in a statement. Global business Shipping group AP Moller-Maersk warned on Thursday that a global trade war and geopolitical uncertainty could trigger a drop in global container volumes this year, although it left its profit outlook unchanged. Trade tariffs imposed by US President Donald Trump have prompted companies worldwide to cut sales targets and major economies to revise down growth prospects, impacting demand for shipping goods at sea. Maersk, viewed as a barometer of world trade, said it now expects global container volumes within a range of down 1% to up 4% this year, compared with the 4% growth estimated at the beginning of the year. 'The outlook for global container demand over the remainder of the year remains highly uncertain, shaped by a rapidly evolving trade policy landscape and increasing recession risks in the United States,' Maersk said. - Reuters Dubai's Emirates Group, which includes the Middle East's biggest airline, announced on Thursday gross annual profit of $6.2 billion (R112 billion), its third record in three years. The 18% rise in profit, based on strong customer demand, slimmed to $5.6 billion after the UAE's recently introduced corporate tax, which was applied for a full financial year for the first time. 'The Emirates Group has raised the bar to set new records for profit, revenue and cash assets,' chairman Sheikh Ahmed bin Saeed Al Maktoum said in a statement. The group invested $3.8 billion in new aircraft, infrastructure and technology 'to support its growth plans', the statement said. Its workforce grew by 9% to an unprecedented 121 223 employees. The group declared a $1.6 billion dividend to its owner, the Investment Corporation of Dubai (ICD). - AFP The European Commission proposed on Thursday countermeasures on up to €95 billion (almost R2 trillion) of US imports if negotiations with Washington fail to remove the series of tariffs applied by US President Donald Trump. The new measures, representing the EU's response to US import tariffs on cars and its broader 'reciprocal' tariffs, would target US wine, fish, aircraft, car and car parts, chemicals, electrical equipment, health products and machinery. The European Commission, which coordinates trade policy for the 27-nation EU, said it was launching a month-long consultation for EU members and business to react. It will then take a final decision on its counter-tariffs, likely to hit a smaller volume of US imports. The announcement of a new list of products the EU may target comes on the day Trump is expected to announce a trade deal between the United States and Britain. – Reuters Sportswear brand Puma reported a decline in first-quarter profit margin on Thursday and no growth in first-quarter sales as the company cuts costs in an attempt to turn its performance around. Puma sales of €2.076 billion (R42.5 billion) were slightly better than analysts' forecast of €2.041 billion, up by 0.1% compared with the first quarter last year. - Reuters China's top chipmaker SMIC said Thursday its first-quarter profit surged, despite a punishing trade war and tensions between Beijing and Washington over key technologies. China has sought to increase its self-reliance in the field of semiconductors, which are used in everything from televisions and cars to weapons and supercomputers. The United States has taken steps to stop Chinese firms from accessing its advanced technology and tightened curbs on exports of state-of-the-art chips and the equipment to make them. SMIC reported in a filing to the Hong Kong Stock Exchange on Thursday that first-quarter profit attributable to owners of the company stood at $188 million, up 161.9% compared to the equivalent period last year. The Shanghai-based company said revenue rose 28.4% year-on-year to $2.2 billion. These results marked an improvement for the company after annual profits plunged 45.4% last year compared to 2023. The company said it expected revenue to decrease 4% to 6% in the second quarter, adding that it saw 'both opportunities and challenges' in the second half of the year. 'The company will enhance its adaptability and risk resilience capability,' it said. - AFP $200 billion (R3.6 trillion) Bill Gates pledged on Thursday to give away almost his entire personal wealth in the next two decades and said the world's poorest would receive some $200 billion via his foundation, which comes as governments worldwide are slashing international aid, Reuters reported.
Daily Maverick
04-05-2025
- Business
- Daily Maverick
Diamonds or dust: MTN soars as Gemfields struggles in Africa's high-risk game
MTN and Gemfields highlight Africa's duality: thrilling growth and unpredictable risk. MTN is thriving amid economic stabilisation, with standout results in Ghana and Nigeria. Gemfields, meanwhile, battles unrest, tax shocks, and plunging gemstone prices. For investors, Africa remains a high-stakes bet—rewarding for some, punishing for others. Resilience is essential. MTN: Time for Africa? MTN's share price bounces all over the place, mainly because the group is so heavily exposed to African economies, which can produce some pretty spectacular levels of volatility. Inflation rates can be eyewatering, currencies can lose much of their value in just one year, and of course, there's always the risk of conflict or 'democratic' processes that leave much to be desired. And even if all of those corporate bullets are dodged, there's the risk of attempted tax grabs by African governments, often in the form of surprise changes to legislation or just outright attempts to bully companies into paying more tax. And yet, the opportunity to do well is there. For those with strong stomachs and a healthy dose of risk appetite, Africa offers exciting markets. This volatility is why the narrative around MTN can change faster than Cape Town's weather. Last year, the African economies were a mess and the forex losses were vast, particularly in MTN Nigeria. MTN even had to delay the maturity of the MTN Zakhele Futhi B-BBEE scheme, such was the depressed nature of the MTN share price. Fast forward to May 2025 and the MTN share price is up 32.5% year-to-date. The market is feeling far better about this story, mainly because the African economies have managed to find some stability at a time when the world's developed markets are having a wobbly. MTN Ghana kicked things off in the past week, where service revenue growth of 39.6% was well ahead of inflation at 22.4%. The EBITDA (earnings before interest, tax and depreciation) margin expanded by 220 basis points to 58.1%, which drove an increase in EBITDA itself of 45%. High inflation rates aren't a problem when you see growth like this, as the company is delivering real growth – literally, growth in excess of inflation. With Ghana having abolished the e-levy tax on mobile money transactions with effect from 2 April 2025, the great news is that even the government seems to be taking a pro-growth stance these days. Long may it last! The results from Ghana were the perfect hors d'oeuvre, with MTN Nigeria as the main course. Nigeria is the business that makes or breaks the group story – and in this case, there's great news to share. Inflation was 24.2% and service revenue growth was 40.5%, so that's a very similar result to what we saw in Ghana. The big difference is that the currency stabilised against the US dollar this quarter, which took MTN Nigeria from a terrible net loss of N392.7-billion (about R4.5-billion) in the comparable period to a profit of N133.7-billion (about R1.5-billion) in this period. And it's not just a currency story either, evidenced by a metric like EBITDA margin improving by a meaty 720 basis points to 46.6%. There's a real opportunity here for MTN Nigeria to continue making improvements to the balance sheet, provided that the currency continues to play ball. When we combine the MTN news with the recent update from Standard Bank that reflected 10% earnings growth in the first quarter, with Africa as a meaningful contributor, it looks like 2025 could be a far stronger year for the continent. We just need the current trajectory to continue. Rubies are red, emeralds are green – and auction prices are confusing Of course, happier times for MTN and consistently good results for Standard Bank don't mean that every business in Africa is doing well. It all comes down to the underlying exposure and business model. The regional trajectory is just a useful tailwind for many businesses. A perfect example is Gemfields, the company that mines rubies in Mozambique and emeralds in Zambia. It has had to navigate unrest and outright conflict in Mozambique, as well as the sudden introduction (and then removal) of a tax in Zambia. In fact, Gemfields is a great way to play Africa Risk Bingo. If that wasn't bad enough, it has had to face these risks at the worst possible time. The combination of an extensive capex programme alongside a worsening market for the precious stones was just too much for the balance sheet to deal with, leading to the company having to tap shareholders for capital in a rights offer. Now, the obvious way to track whether there's any improvement for Gemfields would be to look at auction results. The challenge is that rubies and emeralds are naturally occurring products of varying sizes and grades, which means that no two auctions are alike in terms of the mix of products being offered. Still, the latest auction results appear to be at prices per carat that are way below previous auctions. Either there has been a material change in the mix of stones on auction, or market prices have nosedived. Given the broader difficulties in this space, it seems possible that the truth is a combination of the two. For example, a recent mini-auction of rubies achieved just $39.47/carat, which is minimal compared to the preceding recent auctions at Gemfields that ranged from $154.84/carat to $321.94/carat. Similarly, an emeralds auction achieved only $6.97/carat, which is way off the recent results of $15.90/carat to $167.51/carat. The corporate narrative around the auction's results is one of renewed optimism. I would just feel more confident in sharing that optimism if the numbers made more sense. Gemfields is certainly one to keep an eye on this year. DM
Reuters
19-02-2025
- Business
- Reuters
Zambia suspends export tax on precious stones and metals
Feb 19 (Reuters) - Zambia has suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness on the global market and draw investment, the finance ministry said on Wednesday. The southern African country, the world's second largest emerald producer after Colombia, reintroduced the tax in January 2025 after it was suspended in 2019. "Zambian precious stones and metals will now be priced more competitively on the global market, thereby attracting greater interest from international buyers and leading to higher sales volumes," the ministry said in a statement. In January, Gemfields (GEMGE.L), opens new tab, which operates the Kagem emerald mine, one of the biggest in the world, warned that the export tax would hurt Zambia's gemstone sector and asked the government to remove it. On Wednesday, Gemfields CEO Sean Gilbertson said the Zambian government's "decisive action" on the export tax would set the industry "back on track". Kagem, which accounts for about 25% supply of global rough emeralds, produced about 10 million carats of emeralds and about 30 million carats of beryl in 2024. (This story has been corrected to change the date to Wednesday from Monday in paragraph 5) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
