REG - Gemfields Group Ltd - MRM Signs Second Processing Plant Contract

GemfieldsAnnouncement

07/08/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230807:nRSG4287Ia&default-theme=true

RNS Number : 4287I  Gemfields Group Limited  07 August 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")

 

MRM Signs Second Processing Plant Contract

LONDON, 7 AUGUST 2023

Gemfields announces that Montepuez Ruby Mining Limitada ("MRM"), in which the
Company holds a 75% interest, has entered into a legally binding contract with
Consulmet (Africa) Limited ("Consulmet") to construct an additional processing
plant at MRM's ruby mine in Mozambique.

The addition of the second plant will triple MRM's processing capacity from
the existing 200 tonnes per hour to 600 tonnes per hour, allowing MRM to
process its sizeable stockpile, bring to market additional size and colour
variations of rubies and to assess and expand into additional mining areas.

The contract is a 'lump-sum turnkey contract' based on industry standard
International Federation of Consulting Engineers ("FIDIC") terms, with MRM's
payment obligations agreed in South African Rands and equating to
approximately USD 70 million (at recent foreign exchange rates and excluding
VAT and government levies). Subject to specified milestones, it is estimated
that 30% of this cost will fall in 2023 and 60% in 2024, with the remainder
being paid in 2025. In addition, MRM expects a modest expansion of its mining
fleet through 2025, with notable additional capacity being added in 2026.

The new processing plant, funded by cash resources and debt, is expected to
become operational during the first half of 2025.

Prahalad Kumar Singh, General Manager of MRM, said: "This investment
constitutes the single-largest investment ever made by the Gemfields Group and
represents our ongoing commitment to the province of Cabo Delgado, to
Mozambique and to our local communities for whom additional jobs and economic
development are of pivotal importance. I extend my deep gratitude to all of
our stakeholders, including our hard-working team and our partners at Mwiriti
Limitada and in the Government of Mozambique for their ongoing support and
encouragement in making MRM a leading contributor in Cabo Delgado."

 

-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

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

(AIM) & JOINT BROKER      Christopher Raggett / Tim Redfern / Edward Whiley
                            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, advancing the wider group's
"mine and market" vision.

 

Gemfields has developed a proprietary grading system and a pioneering auction
and trading platform to provide a consistent supply of coloured gemstones to
downstream markets, a key component of Gemfields' business model and 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)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  CNTUNVNROAUWRAR