LONDON (ShareCast) - (Sharecast News) - Gemfields said on Monday that it has agreed to sell iconic luxury brand Fabergé to SMG Capital LLC for $50m.
SMG Capital is a US-based investment company owned by tech entrepreneur and venture capital Sergei Mosunov.

Gemfields said $45m is payable on completion of the sale, which is expected to be 28 August, while the remaining $5m is payable by way of quarterly royalty payments at a rate of 8% of Fabergé's revenue.

It said the sale - which is not expected to be subject to regulatory or any other approval processes - concludes its strategic review of Fabergé, which was first announced in December 2024, then paused to facilitate the company's rights issue.

"With the sale of Fabergé and the discontinuance of other non-core projects, Gemfields is now a more streamlined and focused investment proposition with a strengthened balance sheet," it said.

Proceeds from the sale will provide additional working capital while the new processing plant at Montepuez Ruby Mining in Mozambique is operationalised and mining at Kagem in Zambia is progressively expanded, having been suspended in the first half of 2025.

Chief executive Sean Gilbertson said: "Having initiated our strategic review of Fabergé in response to the considerable challenges Gemfields started facing in Q4 2024, today's sale marks the end of an era for us.

"Fabergé has played a key role in raising the profile of the coloured gemstones mined by Gemfields and we will certainly miss its marketing leverage and star power. I extend our admiration and sincere thanks to the Fabergé team for their fortitude and the progress they have delivered over the years."

Danni Hewson, head of financial analysis at AJ Bell, said: "Today's sale of the iconic Fabergé brand will be bittersweet for Gemfields. The $50 million it will receive should go a long way to bolstering the miner's flagging finances, but it loses what has been an incredible shop window for the colourful gems it plucks out of the ground.

"The long history associated with Fabergé gives its wares a cachet that pushes those wealthy enough to pay a premium for the privilege of owning an immediately recognisable item.

"The price paid for the brand might pale in comparison with the amount paid for nine imperial eggs back in 2004, but it gives the miner significant capital to plough back into the struggling business and allow it to focus on its core operation.

"For Fabergé's new owner, it's a chance to make little pieces of history. And if it can help bring the brand's attention to more modern-day shoppers that is also likely to provide a boost to its previous custodian, perhaps pushing people to once again covet the gemstones that have fallen out of favour in recent years."

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