Gemfields Grou. Regulatory News (GEM)

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 

-ENDS-

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

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 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

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KAGEM MINING LINKEDIN

MONTEPUEZ RUBY MINING LINKEDIN