REG - Gemfields Group Ltd - Interim Report for the six months to 30 June 2024

GemfieldsAnnouncement

27/09/2024 07:00

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RNS Number : 9003F  Gemfields Group Limited  27 September 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")

 

Reviewed Interim Report for the six months to 30 June 2024

LONDON, 27 SEPTEMBER 2024

Gemfields is pleased to announce the Company's financial results for the six
months to 30 June 2024 ("2024 Interim Results").

Highlights:

·    Total revenue for the six months to 30 June 2024 of USD 128.0
million.

·    EBITDA for the six months to 30 June 2024 of USD 49.6 million (an
EBITDA margin of 38.8% for the Group).

·    Free cash flow before working capital movements for the six months to
30 June 2024 of USD 3.3 million due primarily to significant investment
programme.

·    Group's net debt position at 30 June 2024 was USD 44.4 million
(before USD 65.5 million of auction receivables and which are now 100%
collected).

Sean Gilbertson, CEO of Gemfields, commented:

"Gemfields is working through a complex year, balancing the availability of
cash with the considerable investments we're making at the Kagem emerald mine
("Kagem") in Zambia, the Montepuez ruby mine ("MRM") in Mozambique and our
development assets.

"The construction of MRM's USD 70 million second processing plant is
materially on time and within budget for completion by the end of H1 2025. We
look forward to a tripling of our ore processing capacity allowing us to
unlock our considerable stockpile, bring to market additional size and colour
variations of rubies and provide us with the flexibility we need to better
understand ore from other ruby-containing areas on our vast licence. We have
completed and are now benefiting from Kagem's processing plant upgrade.

"Walking this narrow path is difficult but there is genuine excitement among
our management and team members about the position we aim to be in in 12
months' time and the increased revenues arising after the completion of our
ongoing investments.

"In the first half of 2024, Gemfields conducted two emerald auctions (one of
commercial quality in March and one of higher quality in May) followed by a
mixed-quality ruby auction in June. Despite slightly weaker sentiment from
some customers, all three auctions delivered healthy results with the emerald
auctions achieving USD 52 million and the ruby auction achieving USD 69
million. Fabergé earned USD 6.6 million in the period, has a solid customer
base and continues to unlock significant promotional opportunities for our
coloured gemstones.

"The weakness seen at our September commercial-quality emerald auction brings
some uncertainty but we consider it unlikely that the November higher-quality
emerald auction or the December mixed-quality ruby auction will yield below
par results of a similar scope. That said, if there are any material setbacks,
we are of course prepared to take additional measures, including cost
reduction measures and further financing options.

"We are confident that we provide the market with the leading selection of
graded emeralds and rubies worldwide and operate in a way that brings material
value to the countries of origin in a responsible manner. We hope that anyone
with one of our emeralds or rubies in a necklace, bracelet, ring or pendant
can say with pride that they own a "Gemfields" gemstone and know the good it
is doing."

Financial and Operating Results

                                            Six months to 30 June 2024  Six months to 30 June 2023
                                            USD'000                     USD'000
 Revenue                                    127,963                     153,619
 EBITDA(1)                                  49,648                      72,981
 Profit from operations                     26,483                      36,491
 Net Profit                                 13,659                      18,136
 Profit attributed to owners of the parent  7,350                       9,856

                                            USD cents                   USD cents
 Earnings per share                         0.6                         0.8
 Headline earnings per share                0.6                         0.8
 Adjusted Headline earnings per share       1.0                         1.9
 Dividend per share (1)                     0.86                        2.88

                                            USD'000                     USD'000
 Net Asset Value (Parent only)              435,257                     467,004
 Net (debt) / cash                          (44,395)                    61,837

( )

(1) Dividend paid in the periods (USD 10 million dividend paid in June 2024
and USD 35 million dividend paid in May 2023), rounded to two decimal points.

The content of this short-form announcement is the responsibility of the
Board. Shareholders are advised that this short-form announcement represents a
summary of the information contained in the full announcement and does not
contain full or complete details of the financial results.

Any investment decision by investors and/or shareholders should be based on
the consideration of the full announcement as a whole and shareholders are
encouraged to review the full announcement available for viewing on the
Company's website: www.gemfieldsgroup.com (http://www.gemfieldsgroup.com)

The results can also be accessed by following the link below:
https://senspdf.jse.co.za/documents/2024/jse/isse/GMLE/Interim24.pdf
(https://senspdf.jse.co.za/documents/2024/jse/isse/GMLE/Interim24.pdf)

The full announcement may also be requested at Gemfields' registered office,
PO Box 186, Royal Chambers, St. Julian's Avenue, St Peter Port, Guernsey, GY1
4HP, at no charge, during office hours. Investors and/or shareholders may also
request copies of the full announcement from Investor Relations via
ir@gemfields.com (mailto:ir@gemfields.com) .

The short-form announcement has itself not been audited or reviewed. However,
the financial information included herein has been extracted from the interim
financial statements which have been reviewed by the Company's auditors, Ernst
& Young LLP. The auditors report on the financial statements is not
qualified.

Shareholder and analyst webcast

There will be a shareholder and analyst webcast today at 09:00 am (UK) / 10:00
am (South Africa). Sean Gilbertson (CEO) and David Lovett (CFO) will present
the Company's 2024 interim results.

The Company will host a question and answer session following the
presentation. Should you wish to ask a question, please either email your
questions in advance to ir@gemfields.com (mailto:ir@gemfields.com) or use the
'Ask a question' link on the webcast page during the event.

Shareholders who wish to watch the webcast are requested to register via the
link below:
https://sparklive.lseg.com/GemfieldsGroupLtd/events/6382ea02-7352-446b-97c7-e29061da20e1/gemfields-group-limited-interim-results-2024
(https://sparklive.lseg.com/GemfieldsGroupLtd/events/6382ea02-7352-446b-97c7-e29061da20e1/gemfields-group-limited-interim-results-2024)

Should you have any further queries with regards to the proceedings of the
event, please contact Investor Relations (ir@gemfields.com
(mailto:ir@gemfields.com) ).

 

-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    Panmure 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/) |
X (https://x.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) | X (https://x.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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