TIDMGEM
RNS Number : 3491N
Gemfields Group Limited
22 September 2023
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 Results for the six months ended 30 June
2023
LONDON, 22 SEPTEMBER 2023
Gemfields is pleased to announce the Company's financial results
for the six months ended 30 June 2023 ("2023 Interim Results").
Highlights:
-- Total revenue for the six months ended 30 June 2023 of USD 154 million.
-- EBITDA for the six months ended 30 June 2023 of USD 73 million.
-- Maintained a healthy EBITDA margin of 47.5%.
-- Free cash flow before working capital movements for the six
months ended 30 June 2023 of USD 25.2 million.
-- Strong balance sheet with net cash balance at 30 June 2023 of
USD 62 million, and USD 63.8 million of auction receivables now 97%
collected
Sean Gilbertson, CEO of Gemfields, commented:
"Gemfields' strong financial performance has continued in the
first six months of 2023. Our rough emeralds and rubies continue to
be in demand after the step-change in market pricing seen across
last year. Coloured gemstone prices continue to rise given their
rarity, increasing global desirability and a market long bifurcated
into two vastly different price brackets for natural and lab-grown
gemstones. Gemfields is uniquely positioned to benefit from these
trends and to further develop the coloured gemstone market.
Recent production at our Kagem emerald mine has been lower than
we would have hoped, both in quality and quantity. This resulted in
our decision to withdraw November's higher-quality emerald auction
from this year's schedule and bring the available production to
market in 2024. This is understandably disappointing, but such
periods have been seen in the past and we always wish to ensure we
have an optimal offering when we bring our gemstones to auction.
Given the withdrawal of this auction, we are not presently
positioned to match 2022's standout financial performance in
2023.
We have started construction at our Montepuez ruby mine of the
second processing plant, the single largest ever investment as a
Group. The plant is expected to become operational during the first
half of 2025 and will be a gamechanger in terms of our ability to
process our sizeable stockpile, and to bring new ruby products to
market and explore more of our licence area.
On a corporate level, we were pleased with the payment of our
dividend in May, rewarding shareholders with a 13.5% yield. The
standout auction results and robust production in 2022 led to the
Board declaring - as an exceptional occurrence - an interim
dividend. In light of the challenging gemstone production in recent
months, the Board is not announcing an interim dividend with
today's results.
As we look to the rest of 2023 and into 2024, our unique
business model and strategy continues to bear fruit with the hard
work of our employees and the support of our customers and host
countries in Mozambique and Zambia."
Financial and Operating Results
Six months Six months
ended 30 ended 30
June 2023 June 2022
USD'000 USD'000
----------- -----------
Revenue 153,619 193,176
----------- -----------
EBITDA(1) 72,981 104,822
----------- -----------
Profit from operations 36,491 85,914
----------- -----------
Net Profit 18,136 56,693
----------- -----------
Profit attributed to owners
of the parent 9,856 43,495
----------- -----------
USD cents USD cents
----------- -----------
Earnings per share 0.8 3.7
----------- -----------
Headline earnings per share 0.8 3.7
----------- -----------
Adjusted Headline earnings
per share 1.9 4.1
----------- -----------
Dividend per share (1) 2.88 1.70
----------- -----------
USD'000 USD'000
----------- -----------
Net Asset Value (Parent only) 467,004 487,837
----------- -----------
Net cash 61,837 81,796
----------- -----------
(1) Dividend paid in the periods (USD 35 million dividend paid
in May 2023 and USD 20 million dividend paid in May 2022), 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
which is 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/2023/jse/isse/GMLE/Interim23.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 African). Sean Gilbertson and David
Lovett will present the Company's 2023 Interim 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
.
Shareholders who wish to participate in the webcast are
requested to register via the link below:
https://investorpresentations.co.za/gemfields/events/39-gemfields-group-limited-interim-results-presentation
-S-
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 Cavendish Capital Markets Limited
(AIM) & JOINT BROKER Neil McDonald / Edward Whiley / Tim
Redfern
T: +44(0) 20 7220 0500
-------------------------------------
JOINT BROKER Liberum
Scott Mathieson / Kane Collings
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 | TWITTER | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
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