Gemfields sells Fabergé luxury brand for $50 million

Emeralds and rubies miner Gemfields (LON: GEM) (JSE: GML) is selling its iconic jewellery brand Fabergé for $50 million, in a fresh attempt to shore up its finances.The buyer is SMG Capital, a US investment company controlled by the technology investor Sergei Mosunov.The deal closes a chapter that began in 2013, when Gemfields bought Fabergé from private equity group Pallinghurst for $142 million. The miner put the brand on the market in December after unrest in Mozambique forced a temporary halt at its Montepuez ruby mine. Founded in 1842 and transformed under Peter Carl Fabergé, who became goldsmith to the Russian Imperial Court in 1882, the brand has faced headwinds from a slump in the luxury goods market, a downturn that has hit diamond miners hardest. Fabergé posted revenues of $13.4 million in 2024, down from $15.7 million in 2023.Fabergé, which was founded in 1842 and taken over and transformed by Peter Carl Fabergé in 1882, when he became official goldsmith to the Russian Imperial Court. The brand has come under pressure amid a downturn in the luxury goods market, which has hit diamond miners the hardest. It made revenues of $13.4 million in 2024, down from $15.7 million the previous year.“The sale marks the end of an era,” Gemfields chief executive Sean Gilbertson said in a statement. “Fabergé has played a key role in raising the profile of the coloured gemstones we mine, and we will miss its marketing leverage and star power.”The company will use the proceeds to support operations in Mozambique and Zambia.Timeless treasuresFabergé most iconic jewels and objects include the legendary series of ornate Easter eggs, first commissioned by Tsar Alexander III in 1885 for his wife, Tsarina Maria Feodorovna. Before the 1917 revolution, the company produced 50 of these creations for the Russian royal family. The Bolsheviks later seized Fabergé’s workshops, forcing the family into exile across Europe.A Fabergé Easter Egg. (Image courtesy of Gemfields.) The brand passed through multiple owners over the 20th century, fetching $180 million in 1984 and acquiring the Elizabeth Arden brand three years later. It was sold to Unilever in 1989 for $1.55 billion and relaunched by the Fabergé family in 2009.Gemfields shares have fallen about 70% since peaking at 19.4p in April 2022, dragged down by  oversupply in the emerald market. The company recently delayed commissioning a second processing plant at Montepuez, citing illegal mining, permit issues, and logistical setbacks.By late morning Monday, Gemfields’ stock was up 4% at 5.95p in London and 0.74% higher in Johannesburg, valuing the company at 2.35 billion rand ($132 million).Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com