REG - Gemfields Group Ltd - Trading Statement for year ended 31 December 2023

GemfieldsAnnouncement

22/03/2024 07:00

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RNS Number : 8973H  Gemfields Group Limited  22 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")

Trading Statement for the year ended 31 December 2023

LONDON, 22 MARCH 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 results for the year ended 31 December 2023.

Sean Gilbertson, CEO of Gemfields, commented:

"In what has been a year of both achievements and challenges, Gemfields
recorded its second highest annual revenues alongside seeing record prices
being paid for our rough coloured gemstones sold at auction.

"Production of premium rough gemstones has been weaker at both Kagem and
Montepuez Ruby Mining ("MRM") compared to 2022, and resulted in November
2023's planned higher-quality emerald auction being withdrawn from our
schedule. We look forward to completing our first auction of the year later on
today, with a commercial-quality emerald auction taking place in Jaipur, and
our next higher-quality emerald and mixed-quality ruby auctions to take place
in Q2.

"2023 also saw the start of a period of considerable investment across the
Group, from our position of financial strength at the end of 2022. We are
confident that the short-term impact of this investment on our financial
results and performance will lead to a stronger and genuinely transformed
business, particularly at MRM, where construction is ongoing for a second
processing plant."

Expected earnings per share and headline earnings per share for 2023

Gemfields' two key operating assets, Kagem and MRM, generated revenues of USD
89.9 million and USD 151.4 million respectively in 2023 (2022: Kagem - USD
148.6 million; MRM - USD 166.7 million). The total auction revenues in 2023 is
the second highest in the Group's history and indicated that the demand for
coloured gemstones remains strong, despite having one less higher-quality
emerald auction in the year.

Fabergé recorded revenues of USD 15.7 million (2022: USD 17.6 million) due to
a softer luxury market.

A review of Gemfields' 6.54% shareholding in Sedibelo Resources Limited
("Sedibelo"), the South African platinum group metals ("PGM") mining company,
has resulted in a fair value write-down of USD 28.0 million to USD 4.0
million. The write down of the asset reflects the reduced public market
valuations for comparable PGM companies and the reduced operating and
financial results for Sedibelo over the period. Sedibelo is non-core to the
Gemfields business.

Gemfields is reasonably certain that, after taking this write-down into
account, its net loss after tax(1) will be USD 2.8 million for the year ended
31 December 2023 (2022: Net profit after tax - USD 74.3 million). In ZAR
terms, the net loss after tax is expected to be ZAR 52 million (2022: Net
profit after tax - ZAR 1,214 million). The loss is driven primarily by the
Sedibelo unrealised non-cash write-down and the withdrawn higher-quality
emerald auction, the production of which will be offered for sale in 2024, and
is not a reflection on the overall strength of the Gemfields business.

Loss per share(2) is expected to be USDc 0.8 for the year (2022: Earnings per
share - USDc 4.8). In ZAR terms, the loss per share is expected to be ZARc
15.4 (2022: Earnings per share - ZARc 78.3).

Headline loss per share(2), which includes Sedibelo's fair value loss, is
expected to be USDc 0.9 for the year (2022: Headline earnings per share - USDc
4.8). In ZAR terms, headline loss per share is expected to be ZARc 16.0 (2022:
Headline earnings per share - ZARc 78.3).

Adjusted headline earnings per share(2), which excludes Sedibelo's fair value
loss, is expected to be USDc 1.5 for the year (2022: USDc 5.2). In ZAR terms,
headline earnings per share is expected to be ZARc 26.8 (2022: ZARc 85.5).

The Company's weighted average shares in issue in 2023 was 1,206,076,930
(Weighted average of 2022: 1,185,105,349).

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

The Company's financial results for the year ended 31 December 2023 are
expected to be released on SENS, RNS and the Company's website at 07:00am (UK)
/ 09:00am (South Africa) on Monday, 25 March 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).

 

Full year results shareholder and analyst webcast

There will be a shareholder and analyst webcast on 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. 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/40-gemfields-group-limited-full-year-results-presentation
(https://investorpresentations.co.za/gemfields/events/40-gemfields-group-limited-full-year-results-presentation)
.

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    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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