Gemfields Group sells Fabergé stake to SMG Capital for R889 million

 African emerald, ruby, and sapphire mining company Gemfields Group has sold its stake in the iconic luxury brand Fabergé to SMG Capital for $50 million (about R889.4m).

"Having initiated our strategic review of Fabergé in response to the considerable challenges Gemfields started facing in the fourth quarter of 2024, today's sale marks the end of an era for us,” said Gemfields Group CEO Sean Gilbertson in a statement.

“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,” he added.

Of the total sum, $45m was payable to Gemfields by the buyer on completion of the sale, which was expected on August 28, 2025. The remaining $5m was payable by way of quarterly royalty payments at a rate of 8% of Fabergé's revenue.

Fabergé is one of the world's most renowned names in luxury, underscored by a well-documented heritage. The brand sells jewellery and objets d'art through its website, boutiques, and via international wholesale partners.

The sale concludes Gemfields' strategic review in respect of Fabergé, which was first announced in December 2024 and then was also paused to facilitate Gemfields' rights issue that was completed on June 13, 2025.

“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,” said Gilbertson.

The sale proceeds would provide additional working capital while the new processing plant at Montepuez Ruby Mining in Mozambique was operationalised, and mining at Kagem in Zambia was progressively expanded, having been suspended during the first half of 2025.

Gilbertson said brands as iconic and beautiful as Fabergé did not change hands very often.

SMG Capital CEO Sergei Mosunov said Fabergé's unique heritage, with ties to Russia, England, France, and the US, opened significant opportunities to further strengthen its position in the global luxury market and expand its international presence.

Fabergé would continue to focus on jewellery, accessories, and timepieces.

SMG Capital is a US-based investment company owned by Sergei Mosunov. Mosunov is a tech entrepreneur and venture capitalist. Through SMG Capital, Mosunov invests in luxury brands and innovative businesses with strong heritage and global growth potential. Mosunov’s other interests span optics, photonics, artificial intelligence, biotech, and foundational models.

Gemfields’ share price gained 0.74% to R1.36 on the JSE Monday afternoon; a year ago, the share price was higher at R2.47.

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