REG - Gemfields Group Ltd - 2023 Annual Report, Dividend and Board Changes

GemfieldsAnnouncement

25/03/2024 07:00

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RNS Number : 1196I  Gemfields Group Limited  25 March 2024

Incorporated in Guernsey. Guernsey registration Number: 47656

South African external company registration number 2009/012636/10

Share code on JSE: GML / AIM: GEM

ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31

("Gemfields" or the "Company")

Audited 2023 Annual Report Released, Dividend Announced and Board Role Changes

LONDON, 25 MARCH 2024

Gemfields is pleased to announce publication of the Company's audited Annual
Report and Accounts for the year ending 31 December 2023 ("2023 Annual
Report"). The content of this short form announcement is the responsibility of
the board of directors of the Company.

Shareholders are advised that this short form announcement represents a
summary of the information contained in the Annual Report and does not contain
full or complete details of the financial results.

Summary

 

·    Second highest annual revenues in Gemfields' history at USD 262
million, despite withdrawal of one higher-quality emerald auction

·    Healthy prices paid at 2023 auctions of Gemfields' rough coloured
gemstones

·    Lower production of both premium emeralds and rubies in 2023 compared
to 2022

·    Construction of second processing plant in Mozambique is
fundamentally on track and on budget with completion expected during H1 2025

·    Operating costs broadly flat at USD 179 million (2022: 175 million)

·    EBITDA margin of 31.7% (2022: 48.6%) due primarily to the withdrawn
November 2023 higher-quality emerald auction due to lower production

·    Non-core 6.54% equity stake in Sedibelo Resources Ltd written down
from USD 32 million by USD28 million to USD 4 million due to peer valuations
and Sedibelo's cessation of mining and processing operations

·    Adjusted headline earnings per share of USD cents 1.5 for the year
(2022: USD cents 4.8)

·    USD 45 million of capital returned to shareholders during 2023 (USD
35 million dividend paid and USD 10 million share buy-back) reflecting the
previous year's outstanding results

·    New dividend of USD 10 million declared (USD cents 0.857 per ordinary
share) and payable in June 2024

 

Sean Gilbertson, CEO of Gemfields, commented:

 

"Gemfields had a year of both achievements and challenges in 2023. The Group
recorded its second highest annual revenues and saw healthy prices paid at our
auctions of rough emeralds and rubies. Production of gemstones in the premium
quality category has been weaker at both Kagem and Montepuez Ruby Mining
("MRM") when compared with 2022 and resulted in one auction of higher quality
emeralds being withdrawn from our schedule in November 2023, negatively
affecting our results for 2023.

 

"2023 also saw the start of a period of considerable investment across the
Group spurred by the position of financial strength prevailing at the end of
2022. We believe that the short-term impact of these investments on our
financial performance and position will lead to a stronger and expanded
business, particularly at MRM, where construction of a second processing plant
- tripling our throughput capacity - is well underway.

 

"2024 will continue to see considerable investment across our mining and
development operations. Our colleagues are hard at work to optimise the value
of these investments.

 

"We continue our commitment to return capital to shareholders, with a smaller
USD 10 million dividend payable in June 2024.

 

"The market for coloured gemstones can and does shift from year to year. While
prices for our emeralds and rubies remain healthy, they are certainly down on
the remarkable figures we saw in 2022. We are convinced that we have the right
strategy and will continue our efforts of raising the profile and
attractiveness of coloured gemstones on a global basis.

 

"Our sincere thanks goes to our team members globally, to our host
governments, our business partners, our customers and our shareholders for
their ongoing support. 2024's financial results will naturally be impacted by
the scale of the investments we are making, but there is much to be excited
about in the coming years across Gemfields' unique business."

 

 

Any investment decisions by investors and/or shareholders should be based on
careful consideration of the full announcement as a whole. The 2023 Annual
Report is available for viewing on the Company's website at
www.gemfieldsgroup.com (http://www.gemfieldsgroup.com) .

 

The Annual Report can also be accessed by following the link below:
https://senspdf.jse.co.za/documents/2024/jse/isse/GMLE/AR2023.pdf
(https://senspdf.jse.co.za/documents/2024/jse/isse/GMLE/AR2023.pdf)

 

Key audit matters and unmodified opinion can be found in EY's full auditor's
report within the Annual Report.

 

 

Financial and Operating Results

 

                                            2023       2022
                                            USD'000    USD'000
 Revenue                                    262,019    341,106
 EBITDA(1)                                  83,081     165,771
 Profit from operations                     17,387     116,543
 Net Profit                                 (2,829)    74,268
 Profit attributed to owners of the parent  (10,090)   56,779

                                            USD cents  USD cents
 Earnings per share                         (0.8)      4.8
 Headline earnings per share                (0.9)      4.8
 Adjusted earnings per share                1.5        5.2
 Dividend per share(2)                      0.857      4.125

                                            USD'000    USD'000
 Net Asset Value (Parent only)              438,172    490,509
 Net cash                                   11,147     104,519

 

(1) Earnings before interest, taxation, depreciation and amortisation,
adjusted to exclude one-off impairments made to the Group's non-current
assets,  inventory, fair value gains or losses on the Group's non-core equity
investments, share based payments, other impairments and provisions.

(2) 2023 figure is based on the USD10 million dividend announced today with a
share count as at 22 March 2024 of 1,166,695,130. 2022 includes the previously
declared USD 35 million final dividend paid on 12 May 2023 and interim
dividend paid on 4 November 2022.

 

 

 

Full year results Shareholder and analyst webcast

 

There will be a shareholder and analyst webcast today (Monday 25 March 2024)
at 09:00 am (UK) / 11:00 am (South Africa). Sean Gilbertson (CEO) and David
Lovett (CFO) will present the Company's 2023 full year results.

 

Shareholders who wish to participate in the webcast are requested to register
via the link here:
https://investorpresentations.co.za/gemfields/events/40-gemfields-group-limited-full-year-results-presentation
(https://investorpresentations.co.za/gemfields/events/40-gemfields-group-limited-full-year-results-presentation)
.

 

Any questions can be written in on the webcast portal or by sending a question
to ir@gemfields.com (mailto:ir@gemfields.com) .

 

The slides that will be presented on the webcast, will be available on
Gemfields' website under Investors: Presentations shortly before the webcast
at https://www.gemfieldsgroup.com/ (https://www.gemfieldsgroup.com/) .

 

 

Declaration of Final Dividend

 

Notice is hereby given that a gross dividend of USD 10 million, or USDc 0.857
per ordinary share, as a final dividend for the year to 31 December 2023, has
been declared out of income reserves. The number of ordinary shares in issue
at the date of declaration is 1,166,695,130 shares.

 

 Event                                                                           Dates (2024)
 Declaration date                                                                Monday 25 March
 Currency conversion date                                                        Friday, 24 May
 Finalisation announcement including the currency conversion announcement        Monday, 27 May
 released on SENS and RNS by 11:00 am SA time
 Finalisation announcement released on RNS at 07:00 am UK time, due to Monday's  Tuesday, 28 May
 Spring Bank Holiday
 Last date to effect removal of shares between the UK (AIM) and SA (JSE)         Tuesday, 4 June
 registers
 The last day to trade in Gemfields shares in SA in order to qualify to          Tuesday, 4 June
 participate in the Dividend
 Shares start trading 'ex' dividend in SA                                        Wednesday, 5 June
 The last day to trade in Gemfields shares in UK in order to qualify to          Wednesday 5 June
 participate in the Dividend
 Shares start trading 'ex' dividend in UK                                        Thursday 6 June
 Record date for participation in the Dividend                                   Friday 7 June
 Removal of shares between UK and SA registers permissible from                  Monday, 10 June
 Payment date                                                                    Monday 24 June

The Company's tax number is 32518 26138 (United Kingdom). The Directors
confirm that the solvency and liquidity test is satisfied at the date of this
announcement. The timetable of the dividend is displayed below:

 

 

Share certificates may not be dematerialised or re-materialised between
Wednesday, 5 June 2024 and Friday, 7 June 2024, both days inclusive.

 

For those shareholders who have specific questions on the mechanics of the
distribution of the Dividend and who may need to update their personal details
to ensure safe receipt of the monies:

 

JSE shareholders on the South African Share Register

Please contact either your broker or CSDP with any questions or to update your
details (including your tax residency status).

 

AIM Shareholders on the Guernsey Share Register

For dematerialised shareholders - please contact your broker or custodian with
any questions or to update your details (including your tax residency status).

 

For certificated shareholders - please contact Computershare Jersey at:

E-mail: info@computershare.co.je (mailto:info@computershare.co.je) /
Telephone: + 44 370 707 4040

 

Board Role Changes

 

Mr Carel Malan, Non-Executive Director and Chair of the Audit Committee, will
no longer be deemed as independent from 1 April 2024 due to a change in his
employment status. Accordingly, Ms Mary Reilly, Independent Non-Executive
Director, will assume the role of Chair of the Audit Committee from 1 April
2024.

 

 

 

-ENDS-

 

 

Further information on Gemfields Group Limited can be found at:

 GEMFIELDSGROUP.COM (http://WWW.GEMFIELDSGROUP.COM)

 

To join our investor mailing list, contact us on:
ir@gemfields.com (mailto:ir@gemfields.com)

 

For any press enquiries please contact us on:
gemfields@camarco.co.uk (mailto:gemfields@camarco.co.uk)

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) no. 596/2014 which forms part of domestic UK
law pursuant to the European Union (withdrawal) act 2018 ("MAR").

 

 

ENQUIRIES

 

 

 GEMFIELDS            Sean Gilbertson / David Lovett / Ian Hughes

                      ir@gemfields.com (mailto:ir@gemfields.com)

T:  +44(0) 20 7518 3400
 SPONSOR (JSE)        Investec Bank Limited
 NOMINATED ADVISER    Liberum

(AIM) & BROKER
Scott Mathieson / John More / Anake Singh
                      T: +44(0) 20 3100 2222
 FINANCIAL PR/ IR     Camarco
                      Gordon Poole / Emily Hall

T: +44(0) 20 3757 4980

 

 

 

ADDITIONAL INFORMATION ON GEMFIELDS

 

Gemfields is a world-leading responsible miner and marketer of coloured
gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald
mine in Zambia (believed to be the world's single largest producing emerald
mine) and the Montepuez ruby mine in Mozambique (one of the most significant
recently discovered ruby deposits in the world). In addition, Gemfields also
holds controlling interests in various other gemstone mining and prospecting
licences in Zambia, Mozambique, Ethiopia and Madagascar.

 

Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of
exceptional heritage - enables Gemfields to optimise positioning, perception
and consumer awareness of coloured gemstones through Fabergé designs,
advancing the wider group's "mine and market" vision.

 

Gemfields has developed a proprietary grading system and a pioneering auction
platform to provide a consistent supply of coloured gemstones to downstream
markets, a key component of Gemfields' business model that has played an
important role in the growth of the global coloured gemstone sector.

 

 

GEMFIELDS

GEMFIELDS.COM (https://gemfields.com/) (https://gemfields.com/) | INVESTORS
(https://www.gemfieldsgroup.com/) (https://www.gemfieldsgroup.com/)
|FOUNDATION (https://www.gemfieldsfoundation.org/)

INSTAGRAM (https://www.instagram.com/gemfields/)
(https://www.instagram.com/gemfields/) | FACEBOOK
(https://www.facebook.com/Gemfields/) (https://www.facebook.com/Gemfields/) |
TWITTER (https://twitter.com/GemfieldsLtd?lang=en)
(https://twitter.com/GemfieldsLtd?lang=en) | YOUTUBE
(https://www.youtube.com/channel/UCArCE0JFtakTP-tHq6v0KVg)

 

FABERGÉ

FABERGÉ.COM (https://www.faberge.com/) | INSTAGRAM
(https://www.instagram.com/officialfaberge/)
(https://www.instagram.com/officialfaberge/) | FACEBOOK
(https://www.facebook.com/OfficialFaberge)
(https://www.facebook.com/OfficialFaberge) | TWITTER
(https://twitter.com/OfficialFaberge) (https://twitter.com/OfficialFaberge) |
YOUTUBE (https://www.youtube.com/user/officialfaberge)

 

KAGEM MINING LINKEDIN (https://www.linkedin.com/company/kagem-mining-ltd)

MONTEPUEZ RUBY MINING LINKEDIN
(https://www.linkedin.com/company/montepuez-ruby-mining)

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