Last checked at 16 Sep 2021 07:00
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, 16 SEPTEMBER 2021
Six months ending 30 June 2021
In accordance with paragraph 3.4(b) of the JSE Listings Requirements, Gemfields is reasonably certain that its net profit after tax will be USD 23.8 million for the six months ending 30 June 2021 (comparative six-month period: USD 56.7 million net loss after tax). In ZAR terms, the net profit after tax is expected to be ZAR 346 million (comparative period: ZAR 959 million net loss after tax).
Earnings per share is expected to be USDc 2.0 for the six months ended 30 June 2021 (comparative period: USDc 4.0 loss per share). In ZAR terms, the earnings per share is expected to be ZAR 0.24 (comparative period: ZAR 0.74 loss per share).
Gemfields' two key operating assets, MRM and Kagem, generated revenues of USD 58.9 million and USD 31.2 million respectively during the six-month period to 30 June 2021 (comparative period: MRM - nil; Kagem - USD 15.0 million). Gemfields' 2020 auction schedule was severely hampered by the many travel, quarantine and congregating restrictions put in place internationally to mitigate the 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 the first half of 2021.
Fabergé recorded revenues of USD 4.9 million (comparative period: USD 2.5 million). The increase in revenue is primarily due to the opening up of key countries for Fabergé after the Covid-19 restrictions in 2020 which hampered Fabergé's ability to deliver sales during various national lockdowns. A review of Gemfields' shareholding in Sedibelo Platinum Mines Ltd ("Sedibelo") has resulted in a fair value write up of USD 7.7 million to USD 37.3 million.
Headline earnings per share, which includes Sedibelo's fair value gain, is expected to be USDc 2.0 for the six months ending 30 June 2021 (comparative period: USDc 3.0 headline loss per share, which also excluded an impairment charge against the Fabergé intangible asset). In ZAR terms, headline earnings per share is expected to be ZAR 0.24 (comparative period: ZAR 0.57 headline loss per share).
The Company's weighted average shares in issue during the six months ending 30 June 2021 was 1,168,756,030 (1,169,526,939 during the six months ending 30 June 2020).
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 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 period ending 30 June 2021 are expected to be released on SENS and RNS on or around 23 September 2021.
Shareholder and analyst webcast
There will be a shareholder and analyst webcast on Thursday, 23 September 2021 at 08.30 am (UK) / 09.30 am (South African). Sean Gilbertson and David Lovett will present the Company's 2021 Interim Results.
Shareholders who wish to participate in the webcast are requested to register via the link below:
https://www.corpcam.com/Gemfields23092021
Shareholders are requested to register for the event by 5pm (UK) on 22 September 2021.
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 22 September 2021 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
GEMFIELDS | Sean Gilbertson / David Lovett / Mark LawrieT: +44(0) 20 7518 3400 |
SPONSOR (JSE) | Investec Bank Limited |
SEDIBELO SALE PROCESS | Liberum Nehal Patel T: +44(0) 20 3100 2222 |
NOMINATED ADVISER(AIM) & JOINT BROKER | finnCapChristopher Raggett / Tim Redfern / Edward WhileyT: +44(0) 20 7220 0500 |
JOINT BROKER | LiberumScott Mathieson / Kane CollingsT: +44(0) 20 3100 2222 |
FINANCIAL PR/ IR | CamarcoGordon Poole / Nick HennisT: +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 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