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Fura Gems has high hopes for its emerald, ruby and sapphire development projects

Snapshot

The company's assets are brownfield sites, rather than greenfield, in a bid to reach cashflow positive status sooner

FURA Gems -

Quick facts: FURA Gems

Price: 0.145 CAD

TSX-V:FURA
Market: TSX-V
Market Cap: $39.45 m
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  • Involved with emeralds, rubies and sapphires
  • Focused on brownfield development, rather than early stage
  • Experienced management team

What Fura Gems does:

Fura Gems Inc (CVE:FURA) describes itself as a 'revolutionary' gemstone mining and marketing company.

It holds ruby assets in Mozambique and emeralds in Colombia and aims to champion transparency at its projects while using sophisticated mining and marketing methods.

The firm is also involved in the exploration and mining of sapphires in Australia through its 100% interests in two mining permits (EPM 25973 and EPM 25978) and three mining licences (ML 70419, ML 70447, and ML 70451).

Its assets are brownfield sites, rather than greenfield, in a bid to reach cashflow positive status sooner. The focus is on mining and marketing material - the group does not cut and polish its stones.

Fura owns a 76% interest in the Coscuez emerald mine in Boyacá, Colombia, where a maiden resource last year showed three million tonnes of inferred resources at 2 carats per tonne for 6 million carats at a conservative value of US$200 per carat.

In Mozambique, the group has ruby assets via its 80% effective interest in each of four ruby licences (4392L, 3868L, 3869L, and 6811L) and one ruby concession (8921C) and its 100% interests in ruby licences 5572L and 7414L and ruby concession 8955C. It holds a 100% interest in a major ruby producing belt covering around 200 square kilometres (sq km). Across Mozambique as a whole, the firm has ground spanning over 435 sq km.

The group is listed on Canada’s TSX Venture Exchange and is a member of the Forbes & Manhattan Group. It is headquartered in Toronto, Canada and its administrative headquarters are in the Gold Tower, Dubai.

How is it doing:

It has been a mixed bag so far this year for Fura, not least due to the impact of the coronavirus pandemic.

On August 10, the firm revealed it was set to increase its footprint in Australia, announcing a deal to acquire Great Northern Mining, based in the west of the country, which boasts 73 leases, in a deal worth around C$2.86 million, or A$2.9 million. The Foreign Investment Review Board of the Australian Government has already indicated no objection to the deal.

A month earlier, Fura said it had drawn down a further US$4.1 million from a US$28.6 million long-term loan facility to fund operations across its portfolio, but after this third advance, no further funds remain available for drawdown under the promissory note, it added.

In June, the company revealed it had got going again at the 76%-owned Coscuez emerald mine in Colombia, with half the workforce back. The firm is transitioning the asset from an artisanal property to a fully mechanized mine but between March 20 this year to June 4, it had been on care and maintenance due to the coronavirus (COVID-19) pandemic.

In addition, an inaugural Colombian emerald auction, which had been scheduled for May in Antwerp, Belgium was cancelled, the firm said.

Fura has also told investors it is in discussions with Colombian mining agency ANM, to extend the Coscuez mining license, which is due to expire on October 9 this year. The firm has obtained approval for the 30-year mine plan but that remains subject to an updated environmental licence and the extension of the mining contract, it said.

Inflection points:

  • Gemstone market moves
  • Coscuez mining license news and operations
  • Next steps and news from Australia

What the boss says:

Fura president and CEO Dev Shetty spoke to Proactive in February this year and explained the rationale behind the group's target of acquiring developed gemstone assets only.

"We don't want to go into a greenfield exploration project because a) the coloured gemstone geology is very complex, it takes time to develop, so we always look for something which is in the operating environment, and b) which we feel we can upscale it and develop a long term project so I think that is what all of the three projects have done now," he said.

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Full interview: Fura Gems does the rare trifecta with projects for Ruby...

Fura Gems (CVE: FURA) President and CEO Dev Shetty joined Steve Darling from Proactive in Vancouver on Skype from Dubai with news the company has closed on two key transactions that give them operation in Australia and Mozambique along with their other project in Colombia.  Shetty...

on 19/2/20

4 min read