Wrap Text
Reviewed Interim Report for the six months to 30 June 2024
Gemfields Group Limited
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 Six months
to 30 June to 30 June
2024 2023
USD'000 USD'000
Revenue 127,963 153,619
EBITDA1 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
The results can also be accessed by following the link below:
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.
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 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
Should you have any further queries with regards to the proceedings of the event, please contact
Investor Relations (ir@gemfields.com).
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, contact us on:
ir@gemfields.com
For any press enquiries please contact us on:
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 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 | INVESTORS |FOUNDATION
INSTAGRAM | FACEBOOK | X | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | X | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
Date: 27-09-2024 08:00:00
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