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Gemfields is looking for an iconic celebrity, who will contribute to the emerald's legacy, in the way that Marilyn Monroe and Audrey Hepburn did with diamonds.



  British company aiming to do for colored gemstones what De Beers did for diamonds


November 12, 2012


Gemfields, the London (AIM)-listed company that today describes itself as the world's foremost colored gemstone producer, is aiming to take a leaf of out of De Beers' book, and in so doing create a market for colored stones that finally can rival diamonds.

In the opinion of Ian Harebottle, Gemfield CEO, this includes developing a massive production potential, including a variety of gemstones types, while at the same promoting the colored gemstone generically in the major consumer markets. Speaking to the Bloomberg news agency, Harebottle said that he is looking for a globally visible celebrity to do for emeralds what Marilyn Monroe and Audrey Hepburn did for diamonds.

In a recent statement, Gemfields reported that revenue from sales increased 108 percent to $83.7 million for the year ended June 20. Pre-tax profit for the same period increased 140 percent to $47.8 million. The company's current market value is put at $225 million.

The fact that many colored gemstones are rarer than diamonds does not necessarily provide them with a natural advantage when it comes to perceived value. "Sometimes rarity is not an asset," Harebottle said in a recent interview. "You need the volumes of supply, which is what we're doing."

Gemfields currently owns 75 percent of the Kagem emerald mine, the world's largest producer of emeralds. It also has 75 percent of the Montepuez ruby field in Mozambique. Gemfield's largest investor, with a 63 percent share, is the Rox unit of Pallinghurst Resources, which is a fund that invests in natural resources. Pallinghurst Resources's chairman is Brian Gilbertson, ex-CEO of the world's largest miner, BHP Billiton.

Among Gemfield's stated strategic goals are the consolidation of the colored gemstone industry, with a view to become the ultimate industry authority, and the provision of a consistent supply of colored gemstones to the world markets.

Gemfield's current cash balance stands at nearly tripled to $36.7 million, but Harebottle said that it will not be used for stock dividends but rather will be reinvested to support the growth and diversification plans of the company.

The company recently launched an international advertising campaign focusing on Zambian emeralds and also an emerald-focused campaign in the United States, where it encouraging jewelry designers to create pieces with Zambian emeralds.

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