Gemstone miner Gemfields is divesting its stake in wholly owned Fabergé Ltd, with the US$50-million sale expected to be completed by end-August.

The legendary jewellery brand will be sold to SMG Capital LLC. Of the amount, US$45 million will be payable to Gemfields by August 28, 2025, while the remaining US$5 million will be settled by way of quarterly royalty payments to Gemfields at a rate of 8 per cent of Fabergé’s revenue. 

The sale concludes Gemfields’ strategic review of the brand’s operations, which was first announced in December 2024 amid a challenging time for the coloured gemstone miner.

With Fabergé sold and other non-core projects discontinued, Gemfields is now a more streamlined and focused investment proposition with a strengthened balance sheet, the company said.

Proceeds from the sale will provide additional working capital while the new processing plant at Montepuez Ruby Mining in Mozambique is operationalised, and mining at Kagem in Zambia is progressively expanded, having been suspended during H1 2025.

Sean Gilbertson, Gemfields Group CEO, said the sale marks the end of an era for Gemfields. 

“Fabergé has played a key role in raising the profile of the coloured gemstones mined by Gemfields and we will certainly miss its marketing leverage and star power,” noted Gilbertson, adding that brands as iconic as Fabergé do not change hands very often.

Sergei Mosunov, CEO and owner of US-based investment firm SMG Capital LLC, said Fabergé will continue to focus on jewellery, accessories and timepieces under his leadership. 

He stated, “Fabergé’s unique heritage, with ties to Russia, England, France and the US, opens significant opportunities for further strengthening its position in the global luxury market and expanding its international presence.”