Enhanced Investments - Financial Portal

Trading Statement

Published: 2022-03-22 07:00:00 ET

Gemfields Group Limited (JSE:GML) News - Trading Statement

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 "Company")


Trading Statement


LONDON, 22 MARCH 2022


For the year ended 31 December 2021.

In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, Gemfields is
reasonably certain that its net profit after tax will be USD 65.0 million for the year ended 31
December 2021 (2020: USD 93.2 million net loss after tax; 2019: USD 39.1 million net profit after
tax). In ZAR terms, the net profit after tax is expected to be ZAR 961 million (2020: ZAR 1,535
million net loss after tax; 2019: ZAR 565 million net profit after tax).

Earnings per share is expected to be USDc 4.0 for the year ended 31 December 2021 (2020: USDc
7.0 loss per share; 2019: USDc 2.0 earnings per share). In ZAR terms, the earnings per share is
expected to be ZAR 0.64 (2020: ZAR 1.20 loss per share; 2019: ZAR 0.32 earnings per share).

Gemfields’ two key operating assets, Montepuez Ruby Mining Limitada (“MRM”) and Kagem
Mining Limited (“Kagem”) saw record-breaking auction results during 2021, generating revenues
of USD 147.4 million and USD 91.8 million respectively during the year (2020: MRM – Nil, Kagem
– USD 22.3 million; 2019: MRM – USD 121.5 million, Kagem – USD 79.0 million). Gemfields’
2020 auction schedule was severely hampered by the many travel, quarantine and congregating
restrictions put in place internationally to mitigate Covid-19 contagion. Gemfields, therefore, had
to adapt and find alternative ways of hosting gemstone auctions. After the success of Gemfields’
inaugural series of smaller, multi-city, online-based auctions for high-quality emeralds in November
and December 2020, Gemfields continued with the same format for its auctions of emeralds and
rubies during 2021.

During the year Fabergé Ltd recorded revenues of USD 13.8 million (2020: USD 7.1 million; 2019:
USD 10.5 million). A Group impairment charge of USD 4.9 million has been recognised, with
USD 4.4 million relating to the Group’s development project in Ethiopia. A review of Gemfields’
shareholding in Sedibelo Platinum Mines Ltd (“Sedibelo”) has resulted in a fair value write up of
USD 7.6 million to USD 37.2 million.

Excluding impairment charges during the year (and including the fair value gain against Sedibelo),
the headline earnings per share is expected to be USDc 5.0 for the year ended 31 December 2021
(2020: USDc 6.0 headline loss per share; 2019: USDc 1.0 headline earnings per share). In ZAR
terms, headline earnings per share is expected to be ZAR 0.70 (2020: ZAR 1.04 headline loss per
share; 2019: ZAR 0.15 headline earnings per share).

The Company’s weighted average shares in issue during the year ended 31 December 2021 was
1,168,938,030 (1,169,141,485 during the year ended 31 December 2020).

1 Net profit/(loss) after tax is reported on a 100% basis for the current period i.e. inclusive of the
minority interest.

2 Per Share metrics and earnings are based on parent only figures i.e. exclusive of the minority
interest.

The financial information upon which this trading statement is based is under review by Gemfields’
auditors. The Company’s financial results for the year ended 31 December 2021 are expected to
be released on SENS and RNS on or around 25 March 2022.

Shareholder and analyst webcast

There will be a shareholder and analyst webcast on Friday, 25 March 2022 at 08.30 am (UK) /
09.30 am (South African). Sean Gilbertson and David Lovett will present the Company’s 2021
Annual Results.

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

https://investorpresentations.co.za/gemfields/events/32-shareholder-and-analyst-webcast

Shareholders are requested to register for the event by 5pm BST on 24 March 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 BST on 24 March 2022 to obtain further
details.

companysecretary@gemfields.com

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


                          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 / Mark Lawrie
                                   T: +44(0) 20 7518 3400


 SPONSOR (JSE)                     Investec Bank Limited


 SEDIBELO SALE PROCESS             Liberum
                                   Nehal Patel
                                   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


Gemfields Group Limited                                                              
most significant recently discovered ruby deposits in the world). In addition, Gemfields also holds
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




                                                       

Date: 22-03-2022 09:00:00
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329 South Oyster Bay Road #2085
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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.