Events & AwardsJun 09, 2025
And the Winners of the 2025 Couture Design Awards Are … Designers were recognized in 12 categories, from platinum to pearls, before the evening ended with a new, retail-focused award.
SourcingDec 15, 2017
Pallinghurst Reorganizes Management, Reduces Gemfields Staff
With the acquisition of Gemfields complete, Pallinghurst aims to lower debt and increase revenue and its mining projects’ outputs.
As part of its efforts to boost revenue, Pallinghurst has refocused mining at the Kagem mine in Zambia, pictured here, to focus on production of premium emeralds.
London--Pallinghurst officially completed its takeover of Gemfields and with that has released an update on initial challenges, progress made and its goals for the future.
Pallinghurst, a natural resources investment company, successfully took over Gemfields in July, two months after it first made an unsolicited takeover offer.
It began making changes almost immediately, including naming a new CEO (Sean Gilberston) and closing the gemstone miner’s marketing, sales and public relations office for cut and polished gemstones in New York and moving those functions to London.
After the integration of the two companies, Pallinghurst said two clear issues have presented themselves.
The first is Gemfields’s debt, which has grown from about $17 million in mid-2014 to $84 million upon completion of the deal.
The second was the $54 million decline in revenue from the Kagem emerald mine in Zambia recorded in the financial year ended in June, mostly due to a sharp decline in the production of premium emeralds.
To resolve these issues, the company has taken action to reduce costs and streamline management. The staff at the London office has been reduced by about 15 percent, it said, joining “staff rationalization” implemented in New York and India.
The Pallinghurst executive team also has been restructured.
Executive Director Priyank Thapliyal has stepped down to become the full-time CEO of Jupiter Mines, in which the company owns an 18 percent stake, while Brian Gilbertson, board chairman and father of Gemfields CEO Sean, will become non-executive chairman at the end of December.
These changes and voluntary salary reductions will reduce the total compensation of the executive team by more than 50 percent, Pallinghurst said. Moving forward, CEO Arne Frandsen, Finance Director Andrew Willis and Sean Gilbertson will form its management team.
Meanwhile, the company has also made operational changes at Gemfields and, more specifically, at Kagem.
“Reporting lines” were reorganized so employees report to a “country executive” overseeing operations in a particular country, rather than reporting by discipline across all countries.
At Kagem, production was purposefully slowed, blast patterns were modified to lower intensity and crews were bolstered to focus on contact and reaction zones. The focus now is being put on extraction of premium emeralds.
Pallinghurst said that while it’s too early to make firm forecasts, it’s happy with initial results. Production in the past three months has generated about 40,000 carats of premium emeralds, compared with 7,940
carats in the first quarter 2017 and 11,310 carats in the second quarter (the two prior to the acquisition).
It also re-opened the mothballed Mbuva-Chibolele mining pit, located across a river from the Kagem mine, to increase available production areas and boost overall production. The first production is expected in the first quarter of 2018.
Bulk sampling, meanwhile, has started at one of the two Megaruma ruby licenses located adjacent to Montepuez in Mozambique. In Ethiopia, exploration continues with emerald mineralization having been encountered and bulk sampling continuing.
Moving forward, Pallinghurst has identified a number of goals for the coming year, which, in addition to revitalizing emerald production in Zambia and expanding ruby production in Mozambique, includes completing an internal review of Faberge.
It also re-opened the mothballed Mbuva-Chibolele mining pit, located across a river from the Kagem mine, to increase available production areas and boost overall production. The first production is expected in the first quarter of 2018.
Bulk sampling, meanwhile, has started at one of the two Megaruma ruby licenses located adjacent to Montepuez in Mozambique. In Ethiopia, exploration continues with emerald mineralization having been encountered and bulk sampling continuing.
Moving forward, Pallinghurst has identified a number of goals for the coming year, which, in addition to revitalizing emerald production in Zambia and expanding ruby production in Mozambique, includes completing an internal review of Faberge.
More on Sourcing
The Latest
AuctionsJun 09, 2025
Nancy Astor’s Cartier Tiara Sells for $1.2MThe rare turquoise and diamond jewel was the top lot at Bonhams’ June jewelry sale.
Events & AwardsJun 09, 2025
Here Are the 2025 Retailer Hall of Fame InducteesThis year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
Events & AwardsJun 09, 2025
CASE Awards Now Accepting Entries For 2025The deadline to submit is June 16.
Weekly QuizJun 05, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsJun 09, 2025
RDI Diamonds Partners With LavalierThe diamond wholesaler is working with the insurance provider to seamlessly offer personal jewelry insurance to RDI retailers’ clients.
CollectionsJun 06, 2025
Piece of the Week: Harwell Godfrey’s ‘Granny Squares Eleanor’ Necklace As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry BusinessWhen investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.
Events & AwardsJun 05, 2025
The 12 Fresh Faces in Couture’s Design AtelierDiscover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.
Events & AwardsJun 05, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
MajorsJun 05, 2025
Platinum Guild International Updates Leadership TeamTwo existing executives have been given new roles.
Events & AwardsJun 05, 2025
Zillion Announces 'Women in STEM' Scholarship RecipientMeredith Tiderington, an electrical engineering student, was selected for the award.
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown DiamondsIt will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 SessionsFrom design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.
CrimeJun 04, 2025
10 Safety Tips for the Las Vegas Shows The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.
MajorsJun 04, 2025
Amy Curran Promoted at Hill & Co.Her new role is director of strategic initiatives.
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into GoldThe designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.
FinancialsJun 03, 2025
Signet Jewelers Sees Turnaround in Q1 With Sales Ticking Up 2%On an earnings call, CEO J.K. Symancyk discussed what’s working for the company and how it’s preparing for the potential impact of tariffs.
SurveysJun 03, 2025
Consumer Confidence Improves in May The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand AmbassadorThe actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade ReportsThe company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."
GradingJun 02, 2025
GSI Opens New Lab in Thailand Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June Those born in June have a myriad of options for their birthstone jewelry.
SourcingJun 02, 2025
David Allouche Joins Grandview Klein DiamondsThe diamond industry veteran has been named its senior sales executive.
FinancialsMay 30, 2025
Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment The company plans to raise the prices of select watches to offset the impact of tariffs.
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable EnvironmentBetween tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ NecklaceDesigned by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.
