Gemfields warned shareholders on Wednesday that it might have to issue shares to prop up the gemstone company’s finances as the Covid-19 pandemic wreaks havoc on production and auction sales revenue — which has fallen by 90%.
More worryingly, sales for the year have stalled, meaning there is no revenue at a time when there are still care and maintenance costs at its mines and head office. Gemfields has cash of $54m, down from $78m at the start of the year, and $44.3m of debt. There is $2m debt payable by December. The company is also negotiating a $15m loan.
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