JSE-listed miner selling iconic jewellery brand to US company
Gemfields is selling its stake in Fabergé, the iconic jewellery brand known for its Imperial Eggs.
Despite being based in Guernsey and primarily mining in Mozambique and Zambia, the group’s primary listing is on the JSE.
In 2007, Gemfields bought the Fabergé trademarks, licences, and associated rights, which reversed the brand’s fragmentation over the last century.
However, the group has now signed an agreement to sell its entire interest in wholly owned Fabergé to SMG Capital for $50 million (R900 million).
SMG Capital is a US-based investment company entirely owned by Sergei Mosunov, a tech entrepreneur and venture capitalist.
$45 million is payable by SMG Capital on the completion date, which is expected on 28 August 2025.
The remaining $5 million will be through quarterly royalty payments at a rate of 8% of Fabergé’s revenue.
The sale proceeds will provide additional working capital while the new processing plant at Montepuez Ruby Mining in Mozambique is operationalised.
The group will also see that mining at Kagem in Zambia is progressively expanding, having been suspended during H1 2025.
The sale is not expected to be subject to regulatory or other approval processes. As a Category 2 transaction, it is not subject to shareholder approval as per JSE listing requirements.
“Having initiated our strategic review of Fabergé in response to the considerable challenges Gemfields, today’s sale marks the end of an era for us,” said CEO Sean Gilbertson.
“Fabergé has played a key role in raising the profile of the coloured gemstones mined by Gemfields, and we will certainly miss its marketing leverage and star power.”
Fabergé’s net assets are valued at $50 million. The loss from operations in 2024 attributable to the net assets subject to the transaction was $5.7 million.
The loss after taxation in 2024 attributable to the net assets subject to the transaction was $11.3 million.
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