Luxury jeweller Fabergé could soon have new ownership as parent company Gemfields evaluates strategic options for the iconic brand amid broader cost-cutting initiatives. The coloured gemstone mining group acquired Fabergé in 2013 for £142 million but has seen revenues decline in recent periods.
The celebrated jewellery house, renowned for its ornate Imperial Easter eggs that command millions at auction, posted revenues of £15.7 million last year, down from £17.6 million in the previous period as luxury market conditions softened considerably.
The potential Fabergé sale forms part of a wider streamlining strategy at Gemfields, which is also divesting its Mozambique gold project and implementing significant operational changes. The company has suspended all non-essential spending and halted planned capital expenditure at its ruby assets in northern Mozambique.
Mining operations at the group’s Kagem emerald mine in Zambia will cease for six months as Gemfields grapples with challenging market dynamics. Recent emerald and ruby auctions have delivered disappointing revenues, with the company citing lower premium ruby production and disrupted emerald market conditions due to competing Zambian suppliers flooding the market with lower-priced stones.
The London-listed miner has faced additional headwinds from civil unrest in Mozambique, creating supply chain disruptions despite operations at its ruby mine remaining largely unaffected. The company maintains that construction of a second ruby plant remains on schedule for completion by mid-2025.
Investor confidence has been severely shaken, with Gemfields’ share price tumbling more than 50% over the past year. The latest strategic review announcement triggered a further 5.7% decline, leaving shares at 6.75p.
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