Gemfields shares fall after Zambian tax authorities raid its offices
Shares in Gemfields fell 4.2% to R2.30 on Friday after saying Zambian tax authorities had raided the offices of one of its mines on Thursday.
The mining group, which recently changed its name from Pallinghurst, warned shareholders the Zambian Revenue Authority had made an unannounced visit to 75%-owned Kagem emerald mine armed with search warrants for the mine and a subcontractor, Limpopo Polygraphs.
The search warrants authorised the Zambian Revenue Authority "to take wide-ranging documents and files" believed to show tax evasion.
Gemfields said Limpopo Polygraphs is a South African company whose work for Kagem mine so far amounts to less than $7,500.
"Gemfields will provide further updates as pertinent information becomes available," Friday’s statement said.