30th Mar 2020 11:26
(Alliance News) - Gemfields Group Ltd on Monday warned of a "significant detrimental impact" from the Covid-19 outbreak, with six key gemstone auctions set to be cancelled due travel restrictions.
The auctions, Gemfields said, drove 93% of its revenue in 2019.
Gemfields explained: "Widespread travel restrictions dictate that Gemfields cannot presently host auctions. Once the travel restrictions are lifted, additional time will clearly be required before life and business returns to a relative 'normal'. There is clearly also a risk that travel restrictions may be extended or re-introduced should a second wave of virus infections take hold in key countries."
Only critical work at the Kagem emerald mine in Zambia is being conducted, with similar operational limits likely in it the Montepuez ruby mine in Mozambique.
Gemfields added: "Exploration projects in Madagascar have been suspended. Gemfields' offices in London and Jaipur are closed, with personnel working remotely."
In the Faberge retail unit, operations inside London's famed Harrods luxury mall have been suspended.
"In addition, approximately 80% of the multi-brand retailers that Faberge sells to are presently closed. Similarly, some 80% of the workshops that supply Faberge are closed, including Faberge's own timepieces workshop in Geneva," Gemfields added.
Shares in the company were down 0.6% at 8.45 pence each in London on Monday morning, and 6.1% lower at ZAR1.55 in Johannesburg on Monday afternoon.
By Eric Cunha; [email protected]
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