Pallinghurst aims to be largest miner of ethically sourced coloured gemstones
Giulietta Talevi asked Pallinghurst CE Arne Frandsen how they won out over rival Chinese cash bidder Fosun
The star power of mining industry veteran Brian Gilbertson has not been enough to keep investors committed to Pallinghurst, the mining investment company he chairs. Its shares are still trading about 70% lower than their listing high of R10.70, hit on August 22 2008. But this week’s success in securing control of coloured-gem miner Gemfields may be the kick the company needs. BD asked CEO Arne Frandsen how they won out over rival Chinese cash bidder Fosun: My proposition is very different — I said to our shareholders in Pallinghurst and Gemfields, stay with us; let us change the structure of the company, let us take operational control and we will unlock value by refocusing the business. What would you say went wrong at Gemfields? First of all, Gemfields is separately listed and you can appreciate the rules that basically mean we have not managed to influence it…. The right thing is for me and my partners to get in and look through it. In our minds, it’s back to basics. It’s basical...
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