Covid-19: Gemfields suspends share buyback

JOHANNESBURG – Gemfields has suspended its share buyback programme to preserve cash due to uncertainty created by the coronavirus pandemic.

“Given the considerable level of uncertainty and to further preserve cash, the share buyback programme has been suspended until further notice,” the coloured gemstone miner and marketer said yesterday.

The share buyback was implemented after shareholders gave it a thumbs up last May, after directors felt the group was undervalued.

Gemfields said it had also beefed up security at the Montepuez Ruby Mine in Mozambique (MRM), after the government released illegal miners from jail, as a result of the coronavirus outbreak.

The group said yesterday all but crucial operations had ceased. It said security, maintenance and other essential services would continue in order to ensure that the mine was well placed to resume normal operations as soon as it was safe and practical to do so.