Enhanced Investments - Financial Portal

Trading Statement

Published: 2022-09-26 09:01:40 ET

                      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
LONDON, 26 SEPTEMBER 2022


Six months ending 30 June 2022

In accordance with paragraph 3.4(b) of the JSE Listings Requirements, Gemfields is reasonably
certain that its net profit after tax1 will be USD 56.7 million for the six months ending 30 June
2022 (comparative six-month period: USD 23.8 million). In ZAR terms, the net profit after tax is
expected to be ZAR 864 million (comparative period: ZAR 346 million).

Earnings per share2 is expected to be USDc 3.0 for the six months ended 30 June 2022
(comparative period: USDc 2.0). In ZAR terms, the earnings per share is expected to be ZAR 0.56
(comparative period: ZAR 0.24).

Gemfields’ two key operating assets, MRM and Kagem, generated revenues of USD 95.6 million
and USD 85.2 million respectively during the six-month period to 30 June 2021 (comparative
period: MRM – USD 58.9 million; Kagem – USD 31.2 million). 2022 saw the Group return to its
normal auction schedule of two emerald auctions and one ruby auction in the first half of the year.
Following on from the strong auction results in the second half of 2021, the auctions held in the
first half of 2022 saw a continuation of the robust demand for coloured gemstones with record
auction revenues and per carat prices being realised.

Fabergé recorded revenues of USD 9.5 million (comparative period: USD 4.9 million) driven by
stronger wholesale sales and the sale of the Fabergé X Games of Thrones objet egg for USD 2.2
million. A review of Gemfields’ shareholding in Sedibelo Resources Limited – previously known
as Sedibelo Platinum Mines Ltd - (“Sedibelo”) has resulted in a fair value write down of USD 4.2
million to USD 33.0 million. The write down of the asset reflects the uncertainty in the market
putting downward pressure on the enterprise values of Sedibelo and its peer group.

Headline earnings per share2, which includes Sedibelo’s fair value loss, is expected to be USDc 3.0
   Gemfields Group Limited, Royal Chambers, St Julian’s Avenue, St Peter Port, GY1 4HP, Guernsey
                                     T +44 (0)1481 731 554
                                        gemfieldsgroup.com
for the six months ending 30 June 2022 (comparative period: USDc 2.0). In ZAR terms, headline
earnings per share is expected to be ZAR 0.56 (comparative period: ZAR 0.24).

The Company’s weighted average shares in issue during the six months ending 30 June 2022 was
1,177,416,414 (1,168,756,030 during the six months ending 30 June 2021).

The financial information upon which this trading statement is based is under review by Gemfields’
auditors. The Company’s financial results for the period ending 30 June 2022 are expected to be
released on SENS and RNS on 29 September 2022.

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).



Shareholder and analyst webcast

There will be a shareholder and analyst webcast on Thursday, 29 September 2022 at 09.30 am (UK)
/ 10.30 am (South African). Sean Gilbertson and David Lovett will present the Company’s 2022
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 companysecretary@gemfields.com.

Shareholders who wish to participate in the webcast are requested to register via the link below:

https://investorpresentations.co.za/gemfields/events/35-shareholder-and-analyst-webcast

Shareholders are requested to register for the event by 5pm (UK) on Tuesday, 27 September 2022.

Should you have any further queries with regards to the proceedings of the event, kindly contact
the Company Secretary at the email address below by 5pm (UK) on Wednesday, 28 September
2022 to obtain further details.

companysecretary@gemfields.com




                                                          -ENDS


                     Further information on Gemfields Group Limited can be found at:
                                                GEMFIELDSGROUP.COM




Gemfields Group Limited                                                                                       Page 2 of 4
                          To join our investor mailing list, contact us on:
                                companysecretary@gemfields.com


                           For any press enquiries please contact us on:
                                    gemfields@camarco.co.uk
                                           ENQUIRIES



 GEMFIELDS                         Sean Gilbertson / David Lovett
                                   T: +44(0) 20 7518 3400


 SPONSOR (JSE)                     Investec Bank Limited


 SEDIBELO SALE PROCESS             Liberum
                                   Scott Mathieson
                                   T: +44(0) 20 3100 2222


 NOMINATED ADVISER                 finnCap
 (AIM) & JOINT BROKER              Christopher Raggett / Tim Redfern / Edward Whiley
                                   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 supplier of responsibly sourced 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




Gemfields Group Limited                                                                 Page 3 of 4
controlling interests in various other gemstone mining and prospecting licenses 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, advancing the wider 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 coloured gemstones to downstream markets, a key
component of Gemfields’ business model and 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 4 of 4

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.