REG - Gemfields Group Ltd - Trading Statement for 6 months ended 30 June 2024

GemfieldsAnnouncement

25/09/2024 07:00

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RNS Number : 5138F  Gemfields Group Limited  25 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")

 

Trading Statement for six months ended 30 June 2024

LONDON, 25 SEPTEMBER 2024

In accordance with paragraph 3.4(b) of the JSE Listings Requirements,
Gemfields shareholders are advised that the Company is reasonably certain of
its expected financial interim results for the six months ended 30 June 2024.

Sean Gilbertson, CEO of Gemfields, commented:

"Further to our operational update for the six months to 30 June 2024, which
was published on 26 July, we are pleased to provide this trading statement
ahead of the release of our Interim Results on Friday 27 September 2024.

"As previously disclosed, the Group generated auction revenues during the
period of USD 120.6 million, as well as USD 6.6 million from Fabergé,
contributing to another profitable period albeit at a reduced level when
compared to the same period last year. This month we experienced a
weaker-than-expected commercial-quality emerald auction. While this increases
the uncertainty we face, management considers it unlikely that the November
higher-quality emerald auction or the December mixed-quality ruby auction will
see below par results of a similar scope.

"While higher-quality gemstones typically remain more robust than
lower-quality gemstones in challenging times, we remain vigilant given that
the luxury and gemstone sectors are facing greater uncertainty than we have
seen in the last three years.

"While we continue to invest in our future having completed the Kagem
processing plant upgrade, and with the construction of MRM's second processing
plant materially on time and within budget, for completion by the end of H1
2025, we will maintain a keen focus on working capital and capital allocation.

"We look forward to presenting our half year results in full detail to our
shareholders and the market on Friday morning."

Expected revenues and net profit

Gemfields' two key operating assets, Kagem Mining Limited ("Kagem") and
Montepuez Ruby Mining Limitada ("MRM"), generated revenues of USD 51.9 million
and USD 68.7 million respectively in the six months to 30 June 2024 (2023 H1:
Kagem - USD 64.6 million; MRM - USD 80.4 million). The demand for rough
emeralds and rubies remained healthy, while production of the highest-quality
gemstones at both mines over this period was below the Group's expectations.
Kagem's production in August saw a considerable uptick alongside the
completion of its upgraded processing plant while MRM continues to be
challenged by weaker gemstone production.

Fabergé recorded revenues of USD 6.6 million (2023 H1: USD 8.4 million) in a
softer luxury-goods market and against a comparative 2023 H1 period that
included a one-off sale of legacy jewellery.

Gemfields' 6.54% shareholding in Sedibelo Resources Limited ("Sedibelo"), the
platinum group metals ("PGM") company, has now been written down to nil from
USD 4.0 million at the end of 2023. The write-down reflects the fact that
there has been no further positive news from Sedibelo, that their operations
remain suspended and Gemfields management's view that the prospects in the
medium term remain dim. The Sedibelo stake is non-core to the Gemfields
business.

Gemfields is reasonably certain that, after taking this write-down into
account, its net profit after tax(1) will be USD 13.7 million for the six
months ended 30 June 2024 (2023 H1: net profit after tax of USD 18.1 million).
In ZAR terms, the net profit after tax is expected to be ZAR 255.6 million
(2023 H1: net profit after tax ZAR 333.7 million). The lower profit is driven
by the lower revenues and higher costs at both operations, the Sedibelo
write-down and an increase in net financing costs as the Group's debt
increases to help fund the construction of MRM's second processing plant.

Expected earnings per share and headline earnings per share

Earnings per share(2) is expected to be USDc 0.6 for the first six months of
the year (2023 H1: Earnings per share - USDc 0.8). In ZAR terms, the earnings
per share is expected to be ZARc 11.8, down 21% (2023 H1: Earnings per share -
ZARc 14.9).

Headline loss per share(2) is expected to be the same as earnings per share -
USDc 0.6 (2023 H1: Headline earnings per share - USDc 0.8). In ZAR terms,
headline earnings per share is expected to be ZARc 11.8, down 21% (2023 H1:
Headline earnings per share - ZARc 14.9).

Adjusted headline earnings per share(2), which excludes Sedibelo's fair value
loss, is expected to be USDc 1.0 (2023 H1: USDc 1.9). In ZAR terms, adjusted
headline earnings per share is expected to be ZARc 18.2, down 48% (2023 H1:
Adjusted headline earnings per share - ZARc 35.1).

The Company's weighted average shares in issue in the six months ended 30 June
2024 was 1,166,695,130 (Weighted average for 2023 H1: 1,214,296,090).

The financial information upon which this trading statement is based has not
been reviewed or reported on by the Company's auditors and is the
responsibility of the Company's directors.

The Company's financial results for the six months ended 30 June 2024 are
expected to be released on SENS, RNS and the Company's website at 07:00am (UK)
/ 08:00am (South Africa) on Friday, 27 September 2024.

(1) Net profit after tax is reported on a 100% basis for the current period
(i.e. inclusive of the minority interest).

(2) Per share metrics based on weighted average number of shares over the
period and earnings are based on parent-only figures (i.e. exclusive of the
minority interest).

 

Interim results shareholder and analyst webcast

There will be a shareholder and analyst webcast on Friday, 27 September 2024
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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