Pallinghurst announces a restructuring of the group including an offer to acquire the minority interests of Gemfields plc
Date19 May 2017
Pallinghurst was founded in September 2007 as a limited life mining investment fund to source and develop new value accretive mining projects. This phase of Pallinghurst’s development has now been achieved with three key assets successfully developed. These include:
- Gemfields – a leading supplier of responsibly sourced coloured gemstones;
- Tshipi – one of the lowest cost manganese producers in the world; and
- Sedibelo – a large scale open pit PGM mining operation in South Africa.
The development of these assets has created significant uplift in the net asset value of Pallinghurst. This value, however, has not been reflected in Pallinghurst’s listed share price given the complexities in the structure (including an external management company and multiple entry points into the Pallinghurst Group’s assets), complex accounting policies which makes comparison to peers difficult and which is compounded by the lack of consolidated earnings and cash flows.