REG - Gemfields Group Ltd - Interim Results for six months ended 30 June 2023

GemfieldsAnnouncement

22/09/2023 07:00

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RNS Number : 3491N  Gemfields Group Limited  22 September 2023

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 Results for the six months ended 30 June 2023

LONDON, 22 SEPTEMBER 2023

Gemfields is pleased to announce the Company's financial results for the six
months ended 30 June 2023 ("2023 Interim Results").

Highlights:

·    Total revenue for the six months ended 30 June 2023 of USD 154
million.

·    EBITDA for the six months ended 30 June 2023 of USD 73 million.

·    Maintained a healthy EBITDA margin of 47.5%.

·    Free cash flow before working capital movements for the six months
ended 30 June 2023 of USD 25.2 million.

·    Strong balance sheet with net cash balance at 30 June 2023 of USD 62
million, and USD 63.8 million of auction receivables now 97% collected

Sean Gilbertson, CEO of Gemfields, commented:

"Gemfields' strong financial performance has continued in the first six months
of 2023. Our rough emeralds and rubies continue to be in demand after the
step-change in market pricing seen across last year. Coloured gemstone prices
continue to rise given their rarity, increasing global desirability and a
market long bifurcated into two vastly different price brackets for natural
and lab-grown gemstones. Gemfields is uniquely positioned to benefit from
these trends and to further develop the coloured gemstone market.

Recent production at our Kagem emerald mine has been lower than we would have
hoped, both in quality and quantity. This resulted in our decision to withdraw
November's higher-quality emerald auction from this year's schedule and bring
the available production to market in 2024. This is understandably
disappointing, but such periods have been seen in the past and we always wish
to ensure we have an optimal offering when we bring our gemstones to auction.
Given the withdrawal of this auction, we are not presently positioned to match
2022's standout financial performance in 2023.

We have started construction at our Montepuez ruby mine of the second
processing plant, the single largest ever investment as a Group. The plant is
expected to become operational during the first half of 2025 and will be a
gamechanger in terms of our ability to process our sizeable stockpile, and to
bring new ruby products to market and explore more of our licence area.

On a corporate level, we were pleased with the payment of our dividend in May,
rewarding shareholders with a 13.5% yield. The standout auction results and
robust production in 2022 led to the Board declaring - as an exceptional
occurrence - an interim dividend.  In light of the challenging gemstone
production in recent months, the Board is not announcing an interim dividend
with today's results.

As we look to the rest of 2023 and into 2024, our unique business model and
strategy continues to bear fruit with the hard work of our employees and the
support of our customers and host countries in Mozambique and Zambia."

Financial and Operating Results

                                            Six months ended 30 June 2023  Six months ended 30 June 2022
                                            USD'000                        USD'000
 Revenue                                    153,619                        193,176
 EBITDA(1)                                  72,981                         104,822
 Profit from operations                     36,491                         85,914
 Net Profit                                 18,136                         56,693
 Profit attributed to owners of the parent  9,856                          43,495

                                            USD cents                      USD cents
 Earnings per share                         0.8                            3.7
 Headline earnings per share                0.8                            3.7
 Adjusted Headline earnings per share       1.9                            4.1
 Dividend per share (1)                     2.88                           1.70

                                            USD'000                        USD'000
 Net Asset Value (Parent only)              467,004                        487,837
 Net cash                                   61,837                         81,796

( )

(1) Dividend paid in the periods (USD 35 million dividend paid in May 2023 and
USD 20 million dividend paid in May 2022), 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 which is 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/2023/jse/isse/GMLE/Interim23.pdf
(https://senspdf.jse.co.za/documents/2023/jse/isse/GMLE/Interim23.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 African). Sean Gilbertson and David Lovett will present the
Company's 2023 Interim Results. The webcast will contain a telephone dial-in
option. Questions will only be taken in writing via the webcast page. The
Company will also accept questions received before the webcast via email to
ir@gemfields.com (mailto:ir@gemfields.com) .

Shareholders who wish to participate in the webcast are requested to register
via the link below:
https://investorpresentations.co.za/gemfields/events/39-gemfields-group-limited-interim-results-presentation
(https://investorpresentations.co.za/gemfields/events/39-gemfields-group-limited-interim-results-presentation)

 

-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          Cavendish Capital Markets Limited

(AIM) & JOINT BROKER      Neil McDonald / Edward Whiley / Tim Redfern
                            T: +44(0) 20 7220 0500
 JOINT BROKER               Liberum

Scott Mathieson / Kane Collings
                            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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