AuctionsMay 16, 2024
Christie’s Holds 2 Sales Despite CyberattackThough its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
SourcingDec 15, 2017
Pallinghurst Reorganizes Management, Reduces Gemfields Staff
With the acquisition of Gemfields complete, Pallinghurst aims to lower debt and increase revenue and its mining projects’ outputs.
As part of its efforts to boost revenue, Pallinghurst has refocused mining at the Kagem mine in Zambia, pictured here, to focus on production of premium emeralds.
London--Pallinghurst officially completed its takeover of Gemfields and with that has released an update on initial challenges, progress made and its goals for the future.
Pallinghurst, a natural resources investment company, successfully took over Gemfields in July, two months after it first made an unsolicited takeover offer.
It began making changes almost immediately, including naming a new CEO (Sean Gilberston) and closing the gemstone miner’s marketing, sales and public relations office for cut and polished gemstones in New York and moving those functions to London.
After the integration of the two companies, Pallinghurst said two clear issues have presented themselves.
The first is Gemfields’s debt, which has grown from about $17 million in mid-2014 to $84 million upon completion of the deal.
The second was the $54 million decline in revenue from the Kagem emerald mine in Zambia recorded in the financial year ended in June, mostly due to a sharp decline in the production of premium emeralds.
To resolve these issues, the company has taken action to reduce costs and streamline management. The staff at the London office has been reduced by about 15 percent, it said, joining “staff rationalization” implemented in New York and India.
The Pallinghurst executive team also has been restructured.
Executive Director Priyank Thapliyal has stepped down to become the full-time CEO of Jupiter Mines, in which the company owns an 18 percent stake, while Brian Gilbertson, board chairman and father of Gemfields CEO Sean, will become non-executive chairman at the end of December.
These changes and voluntary salary reductions will reduce the total compensation of the executive team by more than 50 percent, Pallinghurst said. Moving forward, CEO Arne Frandsen, Finance Director Andrew Willis and Sean Gilbertson will form its management team.
Meanwhile, the company has also made operational changes at Gemfields and, more specifically, at Kagem.
“Reporting lines” were reorganized so employees report to a “country executive” overseeing operations in a particular country, rather than reporting by discipline across all countries.
At Kagem, production was purposefully slowed, blast patterns were modified to lower intensity and crews were bolstered to focus on contact and reaction zones. The focus now is being put on extraction of premium emeralds.
Pallinghurst said that while it’s too early to make firm forecasts, it’s happy with initial results. Production in the past three months has generated about 40,000 carats of premium emeralds, compared with 7,940
Editors' Picks
Sponsored by
carats in the first quarter 2017 and 11,310 carats in the second quarter (the two prior to the acquisition).
It also re-opened the mothballed Mbuva-Chibolele mining pit, located across a river from the Kagem mine, to increase available production areas and boost overall production. The first production is expected in the first quarter of 2018.
Bulk sampling, meanwhile, has started at one of the two Megaruma ruby licenses located adjacent to Montepuez in Mozambique. In Ethiopia, exploration continues with emerald mineralization having been encountered and bulk sampling continuing.
Moving forward, Pallinghurst has identified a number of goals for the coming year, which, in addition to revitalizing emerald production in Zambia and expanding ruby production in Mozambique, includes completing an internal review of Faberge.
It also re-opened the mothballed Mbuva-Chibolele mining pit, located across a river from the Kagem mine, to increase available production areas and boost overall production. The first production is expected in the first quarter of 2018.
Bulk sampling, meanwhile, has started at one of the two Megaruma ruby licenses located adjacent to Montepuez in Mozambique. In Ethiopia, exploration continues with emerald mineralization having been encountered and bulk sampling continuing.
Moving forward, Pallinghurst has identified a number of goals for the coming year, which, in addition to revitalizing emerald production in Zambia and expanding ruby production in Mozambique, includes completing an internal review of Faberge.
More on Sourcing
The Latest
AuctionsMay 16, 2024
Sotheby’s Withdraws 101-Carat Yellow Diamond from AuctionDespite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
ColumnistsMay 16, 2024
The PR Adviser: What the Designer Should’ve DoneLilian Raji gives advice to designers on how to make the most of great publicity opportunities.
Brought to you by
Record Gold Prices Have Consumers Undeterred. Here’s Why.Despite the rising prices, consumers continue to seek out the precious metal.
ColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire BrandsWhy do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
Weekly QuizMay 16, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
AuctionsMay 15, 2024
Red Diamond Breaks Records at Phillips GenevaThe “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
Events & AwardsMay 15, 2024
See Who’s in JA’s 2024 ‘20 Under 40’ ClassThe annual list recognizes young professionals making an impact in jewelry retail.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
IndependentsMay 15, 2024
David Mann Jewelers in Upstate NY to Close After 35 YearsOwner David Mann is heading into retirement.
FinancialsMay 15, 2024
Brilliant Earth’s Sales Fall Flat in Q1 While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
AuctionsMay 14, 2024
2 Huge Yellow Diamonds Are Heading to AuctionChristie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
MajorsMay 14, 2024
Platinum Born Taps ‘Born Leaders’ for New CampaignThe ad aims to position platinum jewelry as ideal for everyday wear.
GradingMay 14, 2024
Instappraise Adds Trifold Brochure to Appraisal OfferingsRetailers can customize and print the appraisal brochures from their store.
Lab-GrownMay 13, 2024
Lab-Grown Diamond Brand Lightbox Cuts Prices by 25 to 40%The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
TechnologyMay 13, 2024
Christie’s Website Brought Down by Hackers, Watch Auction Postponed The site has been down since Thursday evening, just ahead of its spring auctions.
AuctionsMay 13, 2024
Madeleine Albright’s Jewelry, Pins a White-Glove Sale at Freeman’s | HindmanThe late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
IndependentsMay 13, 2024
Zachary’s Jewelers Names Mother’s Day Jewelry Contest WinnersThree fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
MajorsMay 09, 2024
Watches of Switzerland Pays $130M for Roberto Coin Inc.The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
IndependentsMay 09, 2024
Kyle Edward Fine Jewelry to Close Salisbury StoreThe company’s Easton location will remain open.
MajorsMay 09, 2024
JBT Elects New ChairmanBrian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Supplier BulletinMay 08, 2024
Fusing Past and Present at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry and Watch Show
EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
