Try our mobile app
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quality emerald auction being withdrawn from our schedule.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
Gemfields Group Limited, Royal Chambers, St Julian’s Avenue, St Peter Port, GY1 4HP, Guernsey
T +44 (0)1481 731 554
gemfieldsgroup.com
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
tax1 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 share2 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 share2, 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 share2, 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.
Gemfields Group Limited Page 2 of 5
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.
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.
Should you have any further queries with regards to the proceedings of the event, please contact
Investor Relations (ir@gemfields.com).
-ENDS-
Gemfields Group Limited Page 3 of 5
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 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
Gemfields Group Limited Page 4 of 5
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
Gemfields Group Limited Page 5 of 5
