JSE:GML

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Gemfields Group Limited, together with its subsidiaries, operates as a mining company. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

How has Gemfields Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GML is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: GML's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of ZA stocks.


Market Performance


7 Day Return

15.7%

GML

2.4%

ZA Metals and Mining

1.6%

ZA Market


1 Year Return

-16.9%

GML

48.2%

ZA Metals and Mining

2.0%

ZA Market

Return vs Industry: GML underperformed the ZA Metals and Mining industry which returned 47.7% over the past year.

Return vs Market: GML underperformed the ZA Market which returned 3.1% over the past year.


Shareholder returns

GMLIndustryMarket
7 Day15.7%2.4%1.6%
30 Day13.3%10.7%6.6%
90 Day28.6%12.0%11.8%
1 Year-16.9%-16.9%53.7%48.2%7.5%2.0%
3 Year-49.4%-49.4%245.8%208.7%1.8%-18.7%
5 Year-49.4%-49.4%375.0%300.6%43.0%7.0%

Long-Term Price Volatility Vs. Market

How volatile is Gemfields Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gemfields Group undervalued compared to its fair value and its price relative to the market?

0.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GML's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GML's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GML is unprofitable, so we can't compare its PE Ratio to the ZA Metals and Mining industry average.

PE vs Market: GML is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GML's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GML is good value based on its PB Ratio (0.3x) compared to the ZA Metals and Mining industry average (1.2x).


Next Steps

Future Growth

How is Gemfields Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

74.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GML is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GML is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GML is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GML's revenue (40.4% per year) is forecast to grow faster than the ZA market (10.7% per year).

High Growth Revenue: GML's revenue (40.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GML's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gemfields Group performed over the past 5 years?

33.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GML is currently unprofitable.

Growing Profit Margin: GML is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GML is unprofitable, but has reduced losses over the past 5 years at a rate of 33.3% per year.

Accelerating Growth: Unable to compare GML's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GML is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (136.9%).


Return on Equity

High ROE: GML has a negative Return on Equity (-5.83%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gemfields Group's financial position?


Financial Position Analysis

Short Term Liabilities: GML's short term assets ($203.9M) exceed its short term liabilities ($43.4M).

Long Term Liabilities: GML's short term assets ($203.9M) exceed its long term liabilities ($123.7M).


Debt to Equity History and Analysis

Debt Level: GML's debt to equity ratio (8.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GML's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GML has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GML has sufficient cash runway for 2.6 years if free cash flow continues to grow at historical rates of 5.5% each year.


Next Steps

Dividend

What is Gemfields Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GML's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GML's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GML's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GML's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GML's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Sean Gilbertson (48 yo)

2.83yrs

Tenure

US$776,000

Compensation

Mr. Sean Gilbertson, BSc (Mining Engineering) has been Chief Executive Officer of Gemfields Plc since August 4, 2017. Mr. Gilbertson has been Chief Executive Officer of Gemfields Group Limited (Former Name...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD776.00K) is above average for companies of similar size in the ZA market ($USD313.68K).

Compensation vs Earnings: Sean's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Sean Gilbertson
CEO & Executive Director2.83yrsUS$776.00k1.32%
$ 26.9m
David Lovett
CFO & Executive Director2.83yrsUS$455.00k0.0036%
$ 73.4k
Dewald Blom
Chief Information Officer2.08yrsno datano data
Toby Hewitt
Group General Counsel & Company Secretaryno datano datano data

2.8yrs

Average Tenure

Experienced Management: GML's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Gilbertson
CEO & Executive Director2.83yrsUS$776.00k1.32%
$ 26.9m
David Lovett
CFO & Executive Director2.83yrsUS$455.00k0.0036%
$ 73.4k
Christoffel F. Wiese
Non-Executive Director7.92yrsUS$40.00k0.0020%
$ 40.9k
Martin Tolcher
Independent Chairman1.17yrsUS$62.00kno data
Kwape Mmela
Independent Non-Executive Director3.5yrsUS$53.00k0.71%
$ 14.6m
Lumkile Mondi
Lead Independent Non-Executive Director3.33yrsUS$60.00kno data
Mary Reilly
Independent Non-Executive Director0.083yrno datano data
Carel Malan
Independent Non-Executive Director2yrsUS$44.00kno data

3.1yrs

Average Tenure

52.5yo

Average Age

Experienced Board: GML's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gemfields Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gemfields Group Limited
  • Ticker: GML
  • Exchange: JSE
  • Founded: 2007
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: R2.045b
  • Shares outstanding: 1.17b
  • Website: https://www.gemfieldsgroup.com

Number of Employees


Location

  • Gemfields Group Limited
  • Royal Chambers
  • St. Julian’s Avenue
  • Saint Peter Port
  • GY1 4HP
  • Guernsey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMLJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARAug 2008
PLLH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2008
GEMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2008
5PHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2008

Biography

Gemfields Group Limited, together with its subsidiaries, operates as a mining company. It operates through seven segments: Zambia, Mozambique, Platinum Group Metals (PGMs), Steel Making Materials, Corporat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 17:03
End of Day Share Price2021/01/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.