TIDMGEM
RNS Number : 0497W
Gemfields PLC
06 February 2017
Gemfields plc
("Gemfields" or the "Company")
Market Update - Quarter to 31 December 2016
6 February 2017
Gemfields plc (AIM: GEM) is pleased to present an operational
update for the three-month period ending 31 December 2016, the
second quarter of the 2017 financial year. All figures are
approximate and unaudited. Unless otherwise stated, the term
"carats" includes both emerald and beryl in relation to the Kagem
emerald mine, and both ruby and corundum in relation to the
Montepuez ruby mine.
Highlights
Emeralds
-- Production summary for 75%-owned Kagem Mining Limited
("Kagem") in Zambia for the quarter ending 31 December 2016:
-- Production of 4.7 million carats of emerald and beryl with an
average grade of 156 carats per tonne (versus 8.2 million carats
with an average grade of 272 carats per tonne in the quarter ending
31 December 2015), with the difference being attributable to the
varied nature of the mineralisation and a lower-grade zone mined in
the current quarter;
-- Total operating costs(a) of USD 10.2 million (versus USD 12.1
million in the quarter ending 31 December 2015);
-- Unit operating costs(b) of USD 2.17 per carat (versus USD
1.48 per carat in the quarter ending 31 December 2015), while on a
cash basis(c) unit operating costs were USD 1.60 per carat (versus
USD 0.98 per carat in the quarter ending 31 December 2015) with the
difference being primarily attributable to the lower number of
carats recovered in the current quarter when compared to the above
average number of carats produced in the previous quarter; and
-- Cash rock handling unit costs of USD 2.88 per tonne (versus
USD 2.86 per tonne in the quarter ending 31 December 2015).
-- The auction of predominantly higher quality rough emeralds
from Kagem mine that was initially scheduled in December 2016 is
now going to take place in February 2017 in Lusaka, Zambia.
Rubies
-- Production summary for 75%-owned Montepuez Ruby Mining
Limitada ("Montepuez") in Mozambique for the quarter ending 31
December 2016:
-- Production of 1.1 million carats of ruby and corundum with an
average grade of 12 carats per tonne (versus 1.6 million carats
with an average grade of 22 carats per tonne in the quarter ending
31 December 2015) as a result of the lower grade, but higher value
material being processed;
-- Total operating costs(a) of USD 6.6 million (versus USD 6.9
million in the quarter ending 31 December 2015);
-- Unit operating costs(b) of USD 6.00 per carat (versus USD
4.31 per carat in the quarter ending 31 December 2015) as a direct
result of the decrease in carats produced. On a cash basis(c) ,
unit operating costs were USD 5.00 per carat (versus USD 3.31 per
carat in the quarter ending 31 December 2015); and
-- Cash rock handling unit costs of USD 4.90 per tonne (versus
USD 5.02 per tonne in the quarter ending 31 December 2015).
-- A mixed quality auction of rough rubies and corundum
extracted from Montepuez ruby mine was held in Singapore from 12 to
16 December 2016. The auction generated revenues of USD 30.5
million at an average realised value of USD 27.88 per carat;
and
-- The next mixed quality auction of rough rubies and corundum
from the Montepuez ruby mine is expected to take place in June 2017
in Singapore.
Fabergé
-- Fabergé highlights for the quarter ending 31 December 2016:
-- Sales orders agreed(d) during the quarter ending 31 December
2016 increased by 95% when compared to the quarter ending 31
December 2015;
-- The number of sales transactions during the quarter ending 31
December 2016 increased by 48% when compared to the quarter ending
31 December 2015 while the average selling price per piece
increased by 12% over the same period;
-- Total operating costs for the quarter ending 31 December 2016
increased by 2% when compared to the quarter ending 31 December
2015, largely due to an increased marketing and events spend;
-- For the second year running Fabergé won the prestigious Grand
Prix d'Horlogerie de Genève (GPHG) held in November 2016, the Swiss
watchmaking industry's highest honour. This year the Visionnaire
DTZ timepiece won the award in the 'Travel Time' category. The
award cements Fabergé's position as a leader in the watch-making
industry; and
-- Fabergé's acclaimed Secret Garden suite won the 'Best
Colourful Jewellery' category at the Middle East Jewellery of the
Year Awards 2016 in November 2016, highlighting Fabergé's position
as a market leader in coloured gemstone jewellery.
Corporate and cash
-- Cash and cash equivalents of USD 12.3 million at 31 December 2016; and
-- Total debt outstanding of USD 58.3 million at 31 December 2016.
Ian Harebottle, CEO of Gemfields, commented:
"This quarter has seen Montepuez continue to deliver strong
results, with a significant increase in ore processed relative to
the prior comparable period as a result of improved operational
efficiencies. This performance is particularly pleasing given the
results have been achieved despite a planned temporary shutdown of
the wash plant to allow for substantial upgrades. This included the
installation of a new scrubber, de-grit unit and Dense Medium
Separation ("DMS") unit. Traditionally used in the diamond sector,
this is the first time a DMS plant has been used in ruby
production. We are very pleased with the initial results and are
anticipating a significant uplift in processing rates over the
coming months.
Kagem has seen a mixed quarter with the reduced volumes of
production, as a direct result of the varied nature of the
mineralisation at the deposit, being countered to some extent by
the sterling efforts of our operating team on site. During the
current quarter their focus was on further improving operational
efficiencies while exploration and bulk sampling activities at the
Fibolele and Libwente sectors continued at a steady pace.
New projects continued at a steady pace including the addition
of a further 116 sq km of highly prospective ruby licencing being
added to the Company's Montepuez project via a 75% stake in the JV
Eastern Mining Ltd, as well as particularly good progress being
made in Ethiopia. Here, bulk sampling is expected to commence by
the end of 2017 following encouraging results from the Phase 1
diamond drilling programme.
It is also pleasing to see that the luxury market has started
off the year with a buoyant note with Fabergé showing solid January
sales demand and a positive market sentiment noted by our customers
who attended the Tucson gemstone fair. All of our customers are
confirmed to attend the next auction of predominantly higher
quality rough emeralds from 13 to 17 February 2017 in Lusaka,
Zambia, and I look forward to sharing with you the results."
Explanatory Notes:
(a) Total operating costs include mining and production costs,
selling, general and administrative expenses, depreciation and
amortisation, but exclude capitalised costs and mineral
royalties.
(b) Unit operating costs are calculated as total operating costs
divided by the total gemstone production during the period.
(c) Cash operating costs include mining and production costs,
capitalised costs, selling, general and administrative expenses,
and exclude property, plant and equipment capital expenditure,
depreciation, amortisation and mineral royalties.
(d) Sales orders agreed are sales that Fabergé has agreed and
confirmed with customers during the reporting period. Payment
and/or delivery may take place later.
KAGEM EMERALDS
Production and Operations Update
The 75%-owned Kagem emerald mine remains the single largest
producing emerald mine in the world. The key production parameters
by quarter are summarised below:
Quarter Half Year
------------------------ -------------------------------------------------------------- ----------------
KAGEM Quarterly Summary 2015-16 2016-17
to December-16 Units Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
------------------------ ------------- ------ ------ ------ ------ ------ ------ ------ ------ ------- -------
PRODUCTION
Gemstone Production million
(Emerald+Beryl) carats 9.9 8.1 7.5 8.2 7.1 7.2 6.0 4.7 15.7 10.7
Ore Production (Reaction
Zone) '000 tonnes 27.9 36.5 31.7 30.1 23.9 39.0 34.4 30.2 61.8 64.6
Grade
(Emerald+Beryl/Reaction
Zone) carats/tonne 355 222 237 272 297 185 174 156 254 166
Waste Mined (including million
TMS) tonnes 4.0 3.6 4.0 2.8 2.6 3.1 2.9 2.6 6.8 5.5
million
Total Rock Handling tonnes 4.0 3.6 4.1 2.8 2.6 3.1 3.0 2.6 6.8(e) 5.6
Stripping Ratio 143 99 126 93 109 79 84 86 110 85
--------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ ------- -------
CAPITAL EXPITURE
Property, Plant and
Equipment USD million 1.0 1.8 0.2 0.5 2.6 0.4 0.6 0.1 0.7 0.7
Capitalised Waste
Stripping (d) USD million 5.9 4.7 2.5 - - - - - 2.5 -
------------------------ ------------- ------ ------ ------ ------ ------ ------ ------ ------ ------- -------
CASH COSTS (a)
Total (Cash) Operating
Costs (a) USD million 11.4 10.5 8.4 8.0 6.8 8.1 7.1 7.5 16.4 14.6
Gemstone (Cash) Unit
Cost (Emerald+Beryl)
(a) USD/carat 1.15 1.30 1.12 0.98 0.96 1.13 1.18 1.60 1.04 1.36
Ore / Reaction Zone
(Cash) Unit Cost (a) USD/RZ tonne 409 288 265 266 285 208 206 248 265 226
Rock Handling (Cash)
Unit Cost (a) USD/tonne 2.85 2.92 2.05 2.86 2.62 2.61 2.37 2.88 2.41 2.61
------------------------ ------------- ------ ------ ------ ------ ------ ------ ------ ------ ------- -------
ACCOUNTING COSTS (b) (d)
Total Operating Costs
(b) (c) (d) USD million 9.8 12.8 11.4 12.1 11.2 12.6 10.2 10.2 23.5 20.4
Gemstone Unit Cost
(Emerald+Beryl) (b) (d) USD/carat 0.99 1.58 1.52 1.48 1.58 1.75 1.70 2.17 1.50 1.91
Ore / Reaction Zone Unit
Cost (b) (d) USD/RZ tonne 351 351 360 402 469 323 297 338 380 316
Rock Handling Unit Cost
(b) (d) USD/tonne 2.45 3.56 2.78 4.32 4.31 4.06 3.40 3.92 3.46 3.64
------------------------ ------------- ------ ------ ------ ------ ------ ------ ------ ------ ------- -------
(a) Cash operating costs include mining and production costs,
capitalised waste stripping costs, selling, general and
administrative expenses, and exclude property, plant and equipment
capital expenditure, depreciation, amortisation and mineral
royalties.
(b) Total operating costs include mining and production costs,
selling, general and administrative expenses, depreciation and
amortisation, but exclude capitalised waste stripping costs and
mineral royalties.
(c) As at 31 December 2016, a total of approximately USD 62.4
million of waste moving costs was capitalised and is being
amortised as and when the associated ore is mined. The balance of
capitalised waste moving costs, net of amortisation, as at 31
December 2016 amounted to USD 12.7 million.
(d) Following the updated JORC Reserves and Resource Statement
in September 2015, Kagem changed its mine plan from previously
undertaking significant high wall pushbacks to now undertaking
continuous waste removal and mining. The previous high wall
pushback campaigns whose costs were capitalised as deferred
stripping costs ceased in September 2015. The results of the three
quarters to March 2016 have been restated, to reflect this change
in accounting treatment.
(e) Half year 2015-16 figures don't equal the sum of Q1 2016 and
Q2 2016 figures due to rounding.
Total rock handling during the quarter ending 31 December 2016
was 2.6 million tonnes with total production of 4.7 million carats
(versus 2.8 million tonnes of rock handling with total production
of 8.2 million carats in the quarter ending 31 December 2015).
Despite the lower overall production, attributable to the varied
nature of the mineralisation and a lower-grade zone mined in the
current quarter, added focus was placed on continuous improvement
in operational efficiencies and the opening of new areas for future
production. Exploration and bulk sampling activities at the
Fibolele and Libwente sectors continued in the current quarter.
Health, Safety, Environment and Community Update
Kagem continues to maintain an excellent safety record, with no
reportable lost time injuries being recorded, supported by a
high-level commitment to the wellbeing of our employees. Kagem has
begun the process towards the establishment and certification of an
integrated Health, Safety & Environmental management system to
comply with ISO14001 and OHSAS18001 standards. Kagem has continued
to engage local stakeholders to assist in identifying community
needs and jointly developing project plans, roles and
responsibilities. Kagem also made a contribution to the Zambia
Carnivore Programme dedicated to conserving large carnivore species
in Zambia.
Emerald Auction Update
To allow our rough emerald customers, who predominantly hail
from India, to adjust to the demonetisation programme initiated by
President Modi in November 2016, the higher quality emerald auction
originally scheduled to take place in December 2016 was postponed.
Consequently, the next auction of predominantly higher quality
rough emeralds from the Kagem mine is scheduled to take place from
13 to 17 February 2017 in Lusaka, Zambia.
MONTEPUEZ RUBIES
Production and Operations Update
The ongoing mining and bulk sampling operations continued during
the period at the Montepuez ruby deposit in Mozambique, in which
Gemfields has a 75% interest. The key production parameters by
quarter are summarised below:
Quarter Half Year
-------------------- ------------------------------------------------------------------ ----------------
MONTEPUEZ Quarterly
Summary to
December-16 Units Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 2015-16 2016-17
-------------------- ------------- ------ ------ ------- ------- ------ ------ ------- ------- ------- -------
PRODUCTION
Gemstone Production million
(Ruby+Corundum) carats 1.4 0.7 0.5 1.6 2.0 6.2 4.5 1.1 2.1 5.6
Ore Production
(Primary+Secondary) '000 tonnes 79.4 119.5 136.9 132.9 65.1 175.5 177.4 196.0 269.8 373.4
Ore Processed
(Primary+Secondary) '000 tonnes 78.6 75.5 72.8 71.7 67.6 83.1 102.6 89.4 144.5 192.0
Grade
(Ruby+Corundum/Ore
Processed) carats/tonne 18 9 7 22 30 75 44 12 15 29
Waste Mined '000 tonnes 441.7 859.7 996.8 922.0 406.3 693.2 923.0 927.3 1,918.8 1,850.3
Total Rock Handling '000 tonnes 521.1 979.2 1,133.7 1,054.9 471.4 868.7 1,100.4 1,123.3 2,188.6 2,223.7
Stripping Ratio 5.6 7.2 7.3 6.9 6.2 3.9 5.2 4.7 7.1 5.0
----------------------------------- ------ ------ ------- ------- ------ ------ ------- ------- ------- -------
CAPITAL EXPITURE
Property, Plant
and Equipment USD million 1.4 2.3 3.3 1.8 1.6 0.8 3.6 5.2 5.1 8.8
-------------------- ------------- ------ ------ ------- ------- ------ ------ ------- ------- ------- -------
CASH COSTS (a)
Total (Cash)
Operating
Costs (a) USD million 3.7 6.0 5.1 5.3 4.8 6.2 4.7 5.5 10.4 10.2
Gemstone (Cash)
Unit Cost
(Ruby+Corundum)
(a) USD/carat 2.64 8.57 10.20 3.31 2.40 1.00 1.04 5.00 4.95 1.82
Ore Production
(Cash)
Unit Cost (a) USD/tonne 46.60 50.21 37.25 39.88 73.73 35.33 26.49 28.06 38.55 27.32
Rock Handling (Cash)
Unit Cost (a) USD/tonne 7.10 6.13 4.50 5.02 10.18 7.14 4.27 4.90 4.75 4.59
-------------------- ------------- ------ ------ ------- ------- ------ ------ ------- ------- ------- -------
ACCOUNTING COSTS
(b)
Total Operating
Costs (b) USD million 4.6 7.0 6.1 6.9 5.8 7.4 5.8 6.6 13.0 12.4
Gemstone Unit Cost
(Ruby+Corundum)
(b) USD/carat 3.29 10.00 12.20 4.31 2.90 1.19 1.29 6.00 6.19 2.21
Ore Production Unit
Cost (b) USD/tonne 57.93 58.58 44.56 51.92 89.09 42.17 32.69 33.67 48.18 33.21
Rock Handling Unit
Cost (b) USD/tonne 8.83 7.15 5.38 6.54 12.30 8.52 5.27 5.88 5.94 5.58
-------------------- ------------- ------ ------ ------- ------- ------ ------ ------- ------- ------- -------
(a) Cash operating costs include mining and production costs,
capitalised costs, selling, general and administrative expenses,
and exclude property, plant and equipment capital expenditure,
depreciation, amortisation and mineral royalties.
(b) Total operating costs include mining and production costs
(including security costs), selling, general and administrative
expenses, depreciation and amortisation, but exclude capitalised
costs and mineral royalties.
Operations commenced at a new pit within the Mugloto area during
the quarter. A new bulk sampling block, called Maninge Nice East,
has also been opened during the quarter. In the quarter ending 31
December 2016, a total of 196.0 thousand tonnes of ore was mined
(versus 132.9 thousand tonnes for the quarter ending 31 December
2015). The stripping ratio decreased to 4.7 (versus 6.9 for the
quarter to 31 December 2015) due to the mining of exposed ore in
Mugloto and Glass pits for which stripping had been completed in
previous quarters.
During the quarter ending 31 December 2016, the wash plant saw
89.4 thousand tonnes processed, a 25% increase over 71.7 thousand
tonnes processed in the quarter ending 31 December 2015. This
increase, despite the requisite shutdown period is attributable to
fewer plant stoppages, processing of pre-screened material and the
addition of the newly installed water treatment plant to the
circuit. Planned upgrades to the processing plant, including the
installation of a scrubber, de-grit unit and a DMS unit were
completed in December 2016. The enhanced processing plant is
expected to double the average operational throughput rate from 70
tonnes per hour to an operational throughput target rate of 150
tonnes per hour once fully operational.
The average grade during the quarter ending 31 December 2016
decreased to 12 carats per tonne (compared to 22 carats per tonne
in the comparative period) producing a total of 1.1 million carats
of rough rubies and corundum (versus 1.6 million carats in the
quarter to 31 December 2015). The decrease is due to the processing
of a greater proportion of lower grade but higher quality alluvial
ore, which was partially offset by a higher processing throughput
despite the planned shutdown of the wash plant to allow for the
inclusion of the scrubber, de-grit and DMS units into the
circuit.
The construction of the new Montepuez camp is proceeding
according to plan and is expected to be fully completed by June
2017.
Security Update
Additional security measures have been put into place to support
the expansion of the mining operations and upgraded processing
plant. New CCTV cameras have been installed at various critical
locations across the operation. In respect of industrial security,
improvements include the installation of back-up servers at the
control room, the separation of electrical connections from CCTV
connection and the installation of uninterrupted power supply
systems at the control room. An alarm system was also installed in
the sort house. Use of a helicopter for the transfer of products
from the mine to Pemba airport, in addition to road transport, was
also implemented and provided additional product security.
Health, Safety, Environment and Community Update
Regular employee training sessions covering human rights,
conflict resolution, housekeeping procedures and operation and
maintenance of heavy earth moving machinery continued during the
quarter. Montepuez has begun the process for the establishment and
certification of an integrated Health, Safety & Environmental
management system to comply with ISO14001 and OHSAS18001
standards.
Notable progress has been made regarding DUAT and the
Resettlement Action Plan ("RAP") applications. During the quarter,
DUAT for an area of 7,642 hectares was approved by the Mozambique
Government. DUAT application for the balance area of about 18,000
hectares is awaiting approval of the council of ministers and is
expected to be approved early this year. The RAP application is in
the advanced stages of approval. The RAP has been endorsed by the
Council of ministers and the approval is also expected to be
received later this year.
Montepuez launched a conservation farming initiative with
demonstration plots being delineated in each of the six main
villages within our concession, to encourage cooperatives to farm
higher value crops using traditional farming methods. The first
chicken farm built by Montepuez was handed over to the Nanune
women' association after the third cultivation cycle on 10 November
2016. The project is running satisfactorily and the women's
association has become self-reliant. Montepuez is also constructing
a second chicken farm, at Namanhumbir village, for another women's
cooperative which will start its first phase of cultivation in
February 2017.
Montepuez rehabilitated a local primary school and handed it
over to the government. With a view to create a primary school
infrastructure within the region, Montepuez is also in the process
of constructing three additional primary schools, which will be
completed during the next quarter. In order to improve the primary
health care of the local villages, Montepuez handed over a mobile
clinic to the District Health Department in January 2017.
Ruby Auction Update
The December 2016 auction of higher and commercial quality rough
rubies and corundum extracted from Montepuez ruby mine was held in
Singapore. The auction saw 1.09 million carats being sold, which
represented 92% of the value and 80% of the weight offered. The
auction generated revenues of USD 30.5 million at an average
realised value of USD 27.88 per carat.
The auction results are summarised below:
RUBY AUCTION RESULTS December 2016
------------------------ ----------------------
12-16 December
Dates 2016
Location Singapore
Higher and commercial
Type quality
Carats offered 1.37 million
Carats sold 1.09 million
No. of lots offered 71(a)
No. of lots sold 59(a)
Percentage of lots
sold 83%(a)
Percentage of lots
sold by weight 80%
Percentage of lots
sold by value 92%
Total sales realised
at auction USD 30.5 million(a)
Average per carat
sales value USD 27.88/carat(a)
------------------------ ----------------------
(a) Please note that the December 2016 ruby and corundum auction
results have been amended to include a lot that was not previously
included in the original announcement made on 19 December 2016.
Revenues have increased by USD 0.1 million.
Gemfields' next mixed quality auction of rough rubies and
corundum extracted from Montepuez ruby mine is expected to take
place in June 2017 in Singapore.
FABERGÉ
Fabergé saw a 95% increase in sales orders agreed during the
quarter ending 31 December 2016 when compared to the quarter ending
31 December 2015, and a 48% increase in the number of sales
transactions in the same period. Total operating costs for the
quarter ending 31 December 2016 increased by 2% when compared to
the quarter ending 31 December 2015 following the increased
investment in marketing in the current period.
For the second year running Fabergé won the prestigious Grand
Prix d'Horlogerie de Genève (GPHG) held in November 2016, the Swiss
watchmaking industry's highest honour. This year the Visionnaire
DTZ timepiece won the award in the 'Travel Time' category. The
award cements Fabergé's position as a leader in the watch-making
industry.
Fabergé's acclaimed Secret Garden suite won the 'Best Colourful
Jewellery' category at the Middle East Jewellery of the Year Awards
2016 in November 2016, highlighting Fabergé's position as a market
leader in coloured gemstone jewellery.
COLOMBIA
The Company continues to progress the conclusion of the Cosquez
transaction with further due diligence at an advanced stage.
Gemfields continued pre-completion exploration, mine planning and
administrative activities. These included geochemical analysis of
rock samples and other operational aspects such as equipment,
explosives magazine, expansion of current environmental licence to
match future projections and workforce requirements. Several
meetings were held with the Colombian National Mining Agency
("ANM") to discuss modalities of transferring the mining title to
the joint venture in good standing. The operations team is also
developing near-term social plans through Suna Verde, a two-way
digital communications platform created by Gemfields.
Gemfields has a number of active operations, and is currently
exploring many more interests globally. The feasibility of
progressing each prospective operation is examined carefully and in
line with our established business practices. In this instance, and
in the context of our world leading global asset portfolio, it has
been decided to focus on major assets which have the best prospects
of delivery in the near term. A misalignment of commercial
objectives between the shareholders in the ISAM transaction, and
consequent project delays, have led to an agreement by the parties
not to complete the acquisition on an amicable basis. Consequently,
all legal and administrative aspects of the share transfer process
to ISAM, including return of documents, change of legal
representatives and board of directors, and changes in the registry
of the Colombian Chamber of Commerce were finalised by the team in
Colombia in full accordance with Colombian law. Gemfields remains
focused on finalising all matters in relation to the Coscuez
transaction.
ETHIOPIA
The exploratory diamond core drilling programme initiated in
July 2016 at the Dogogo-South block was completed in early December
2016. A total of 3,538 metres was drilled over 45 closed drill
holes. Pegmatite was intersected in all sections along 800 metres'
strike length. Furthermore, a level plan at 1,300 metres Reduced
Level (about 25 metres below surface) confirms the presence of
three sets of pegmatitic bodies. Drilling also confirms the depth
continuity of the ore body that was exposed during trenching and
pitting exercise up to 50 metres vertical depth. Geochemical
analysis of the drilled core is in progress using a handheld XRF
machine, and samples will be checked by laboratory procedure. The
Company submitted an annual progress report, a work programme for
2017, and an application for the extension of its exploration
license by a further year to the Ministry of Mines. Ground
preparation is underway for commencement of bulk sampling in the
next financial year.
SRI LANKA
Gemfields has always viewed the joint venture with East West Gem
Investments Limited as a test project to increase its knowledge in
advance of a larger scale expansion into sapphires. While positive
progress had been achieved during the previous quarter, various
factors have impacted Gemfields ability to progress these projects
to the extent that the Company would ideally have liked during the
quarter under review. The long term future of the project therefore
is currently under review and a more definitive decision is likely
to be made in the near to medium term.
MOZAMBIQUE
The exploration licence 5061L held by Eastern Mining Ltd, a JV
company registered in Mozambique with Gemfields holding 75%
interest, was converted and issued by the Ministry of Mines as a
mining title with identification number 8277C on 29 November 2016,
valid for 25 years. The licence covers an area of 116 sq km and
shares its western boundary with the southern licence of Megaruma
Mining Ltd, another joint venture of Gemfields.
MARKETING
Marketing has seen the Ruby Inspired Stories campaign building
positive brand awareness via global digital and print platforms.
Gemfields has also had a glamorous quarter, frequently featuring on
the red carpet thanks to its ongoing collaborations with Chopard
and Eco-Age, and its recently initiated campaign with Fred
Leighton. Oscar, Bafta and Golden Globes nominated actress Ruth
Negga has selected to wear Gemfields gemstones, drawing much
attention for her stylish choices and generating considerable
awareness for the Company's products.
CORPORATE & CASH
At 31 December 2016, Gemfields had cash and cash equivalents of
USD 12.3 million. The total debt outstanding at 31 December 2016
was USD 58.3 million, which includes USD 10.0 million with
Macquarie Bank Limited (UK Branch), USD 5.0 million with
Pallinghurst Resources Limited, Kagem's outstanding debt balance of
USD 30.0 million with Barclays Bank and USD 13.3 million
outstanding with BCI and Barclays in Mozambique for Montepuez Ruby
Mining Limitada. Gemfields had total sales, general and
administrative expenses of USD 14.8 million in the quarter to 31
December 2016.
ENQUIRIES:
Gemfields janet.boyce@gemfields.co.uk
Janet Boyce, CFO +44 (0)20 7518 7283
Grant Thornton UK LLP
Nominated Adviser
Philip Secrett/Richard Tonthat/Jamie Barklem +44 (0)20 7383 5100
JP Morgan Cazenove
Joint Broker
Jamie Riddell/James Deal +44 (0)20 7742 4000
BMO Capital Markets Limited
Joint Broker
Jeff Couch/Neil Haycock/Tom Rider/Jenny Wyllie +44 (0)20 7236 1010
Macquarie Capital (Europe) Limited
Joint Broker
Raj Khatri/Nick Stamp/Guy de Freitas +44 (0)20 3037 2000
Tavistock
Jos Simson/Emily Fenton/Barnaby Hayward +44 (0)20 7920 3150
Notes to Editors:
Gemfields plc is a leading supplier of responsibly sourced
coloured gemstones and is quoted on the AIM market of the London
Stock Exchange (ticker: GEM).
Gemfields is the operator and 75 per cent. owner of both the
Kagem emerald mine in Zambia (believed to be the world's single
largest producing emerald mine) and the Montepuez ruby deposit in
Mozambique (one of the most significant recently discovered ruby
deposits in the world). In addition, Gemfields also holds a 50 per
cent. interest in the Kariba amethyst mine in Zambia, as well as
controlling interests in various other gemstone mining and
prospecting licenses in Zambia, Mozambique, Colombia, Ethiopia,
Madagascar and Sri Lanka.
Gemfields' outright ownership of the Fabergé brand - an iconic
and prestigious brand of exceptional heritage - enables Gemfields
to optimise positioning, perception and consumer awareness of
coloured gemstones, advancing the 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 quality coloured gemstones to the global downstream
markets. This is a key component of the Company's business model
which the Directors believe has played an important role in the
appropriate distribution and associated resurgence of the global
coloured gemstone sector.
www.gemfields.co.uk
"The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014."
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDBUGDDLXGBGRU
(END) Dow Jones Newswires
February 06, 2017 02:00 ET (07:00 GMT)
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