Monday, May 27, 2024

Gemfields considers partnership for gold prospecting in Mozambique

Mining company Gemfields is evaluating the possibility of seeking a partner to assist in the development of its gold prospect in Mozambique, according to recent reports by news portal Miningmx.

Gemfields’ CEO, Sean Gilbertson, stated that the company is not interested in becoming a long-term gold production company, but is open to alternative options, including the sale of Nairoto Resources, a joint venture company in which Gemfields holds a 75% stake.

Gemfields’ next steps will be determined by the results of the drilling and testing carried out on the TL5 project, whose activities began in 2020 and were subsequently interrupted by the covid-19 pandemic. The company continues to invest in the project, showing confidence in its potential.

However, Gemfields faced challenges last year, with a significant drop in profits. Adjusted share gains fell by 72%, while cash flow recorded a negative figure of 29 million dollars. Despite this, the company remains committed to its investments, including a 49 million dollar investment in the ruby mine in Montepuez, Mozambique.

The news of Gemfields’ possible partnership generated reactions in the financial market, with the company’s shares falling by approximately 3%. However, CEO Sean Gilbertson expressed confidence in the company’s ability to overcome challenges and achieve positive results.

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