Wrap Text
Strategic Update
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 "Group" or the "Company")
Strategic Update
LONDON, 23 DECEMBER 2024
Following Gemfields' most recent emerald and ruby auctions (the results of which were published
on 22 November and 12 December 2024 respectively), the Group announces that it has taken, and
will continue to undertake, actions to cut costs and streamline business activity amid four key
challenges being encountered concurrently, while maintaining focus on the Group's principal
growth project, completion of the second ruby processing plant at Montepuez Ruby Mining
Limitada in Mozambique ("MRM").
Strategic Update
Gemfields' most recent emerald and ruby auctions have earned revenues of USD 16.1 million and
USD 46.2 million respectively, as previously announced. These revenues are materially lower than
the company has experienced in recent years due to three principal factors:
a) disturbed emerald market dynamics arising from an oversupply of Zambian emeralds at
discounted prices by a competing Zambian emerald producer during the second half of
2024, compounded by conflicting auction dates and giving rise to a poor Zambian
emerald market outlook during the first half of 2025;
b) lower production of premium rubies at MRM; and
c) a weaker luxury and gemstone market generally given economic difficulties in China and
geopolitical turbulence.
The fourth challenge the Company faces relates to the ongoing civil unrest and associated supply
chain and logistics interruptions in Mozambique as a result of the contested general election. While
mining operations at MRM have thus far remained unaffected, the overall operating risk profile
has increased with the Company's priority remaining the safety and security of Gemfields'
employees, contractors and community members.
Gemfields regards the construction of the second ruby processing plant at MRM as a critical project
to increase premium ruby production and deliver additional revenue for the Group by the end of
2025. Construction presently remains materially on budget and on schedule for completion by the
end of H1 2025 and Gemfields is working closely with its partners to deliver this project as planned.
As a result of these four challenges, each of which management view as being transient, Gemfields
is enacting Group-wide actions to cut costs and streamline the business. These actions include:
i. suspending, for a period expected to be up to 6 months, all mining at Kagem Mining
Limited ("Kagem"), the emerald mine in Zambia which is 75% owned by Gemfields.
Instead, Kagem will focus on processing ore from Kagem's significant ore stockpile
utilising the recently upgraded processing plant;
ii. halting all non-essential spend and suspending planned capital expenditure at its ruby
development assets in northern Mozambique, namely Megaruma Mining Limitada
("MML") and Campos De Joia Limitada ("CDJ"). Eastern Ruby Mining ("ERM") will
continue core developmental work but will delay the capital expenditure associated with
its originally planned processing plant;
iii. halting operations at Nairoto Resources Limitada ("NRL"), the gold project situated north
of MRM and seeking potential buyers. Interested parties should contact
preciousmetals@gemfields.com;
iv. assessing strategic options in respect of Fabergé, the iconic luxury-brand owned by the
Gemfields Group; and
v. targeted rationalisation of operations and businesses across the Group.
Gemfields continues to closely monitor its working capital as it navigates the prevailing challenges.
As stated in the 2024 Interim Report, management remains prepared to take additional cost
reduction measures and pursue external funding options as may be required.
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, please contact us on:
ir@gemfields.com
For any press enquiries, please contact Helena and Albertina:
helena.choudhury@gemfields.com / albertina.namburete@gemfields.com
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 / Kieron Hodgson / Amrit Mahbubani / John More
T: +44(0) 20 3100 2222
GEMFIELDS HEAD OFFICE Helena Choudhury / Albertina Namburete
PR, LONDON helena.choudhury@gemfields.com / albertina.namburete@gemfields.com
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: 23-12-2024 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
