Gemfields notes major shareholder transactions

Gemfields (AIM: GEM) has informed investors of a number of major shareholder transactions, with the company’s largest and third largest shareholders buying shares in the company. The gemstone producer has been fairly active in recent weeks, with its latest record breaking auction being one of the most notable developments.

Gemfields told investors that, on 18 March 2010, it largest shareholder Rox Ltd bought 4.2 million shares for 5 pence each. The transaction takes its total holding to approximately 200 million shares, representing 61.89% of the company.

The company also announced that earlier this month, 8 March, Capital Research and Management purchased 10 million shares, leap-frogging Matterhorn Investment Management and Deutsche Bank to become the company’s third largest shareholder with 20.1 million shares, approximately 6.22% of the company’s issued share capital.

Gemfields also noted that Goldrock International Corp sold 10 million shares on 8 March and following this transaction, Goldrock hold approximately 2 million shares, representing 0.63% of the capital.

Last week, Gemfields reported that its first rough emerald and beryl auction of 2010, held in Jaipur, India, set a record in terms of the volume for Zambian emerald and beryl on offer by weight with 5.78 tonnes of material on offer. Gemfields sold 89% of the material by value for US$7.2 million.

The company commented that robust customer participation and product demand highlighted a strengthening emerald market.

Also this month, Gemfields reported revenues of US$12 million for the six months ended 31 December 2009 compared to just US$0.34 million in H1 2008 after the two auctions in July and November raised the company US$11.5 million.

http://www.proactiveinvestors.co.uk/companies/news/14873/gemfields-notes-major-shareholder-transactions-14873.html