Gemfields Group (LON:GEM) – up 64% in just one week

02.07.2025

What a shining performance this gemstones business has shown since I featured the group on Monday 23^rd June.

But then, of course, it is in absolutely the right sector to push the attributes of its business – namely, the exploration of emerald, beryl, ruby, corundum, gold and allied minerals in Zambia, Mozambique, Ethiopia and Madagascar.

Gemfields produces around 25% of the world's emerald supply and around 50% of the world's ruby supply.

Following a recent rights issue to raise $30m @ 4.22p a share, they were then trading at 4.50p, which was a couple of days ahead of its AGM.

In that Profile, I set a new Target Price of 5.75p, stating that the shares represent an excellent gamble on the broker’s estimates of current year and prospective profitability being achieved.

After touching 7.40p yesterday, a 64% climb in seven days, they are now trading at around 7.10p.

Despite having convincingly broken through my Target Price, I still feel that there is so much more to play for with this £118m-capitalised company.

(Profile 23.06.25 @ 4.50p set a Target Price of 5.75p*)