Last checked at 4 Jul 2016 07:00
Gemfields plc
("Gemfields" or "the Company")
USD 65 million debt financing facilities
04 July 2016
Gemfields plc (AIM: GEM) is pleased to announce the finalisation of four debt financing facilities (the "Facilities"). Following evaluation of a number of proposals received by the Company, the board believes that these Facilities represent the best option for the Company in terms of cost and associated flexibility. The Facilities are as follows:
1) USD 45 million facility for the Ruby operations, Montepuez Ruby Mining Lda ("MRM"), 75% owned by Gemfields plc, which consist of:
a. USD 15 million unsecured overdraft facility was entered into by MRM, with Barclays Bank Mozambique S.A. ("Barclays S.A.") in April 2016. The facility has an interest rate of three months USD LIBOR plus 4% per annum. The Company issued a corporate guarantee for the facility.
b. USD 15 million overdraft facility was entered into by MRM with Banco Comercial E De Investimentos, S.A. ("BCI") in June 2016. This facility is valid for 18 months and is renewable. The facility has an interest rate of three months USD LIBOR plus 3.75% per annum. The facility is secured by a blank promissory note undertaken by MRM and a corporate guarantee by Gemfields Mauritius Ltd, a 100% subsidiary of the Company.
c. USD 15 million finance leasing facility was entered into by MRM with BCI in June 2016. This is a renewable facility with a drawdown period of 18 months and the amounts drawn down are repayable over a maximum period of 48 months. The facility has an interest rate of three months USD LIBOR plus 3.75% per annum. This facility is secured by a blank promissory note undertaken by MRM and a corporate guarantee by Gemfields Mauritius Ltd, a 100% subsidiary of the Company.
2) USD 20 million financing facility with Macquarie Bank Limited ("Macquarie") agreed in May 2016. This is a fixed term facility and has an interest rate of three months USD LIBOR plus 4.50% per annum. The loan is repayable in regular instalments over a 12-month period from the date of first drawdown of the loan. The security for this loan comprises a floating charge over the jewellery and cut and polished gemstones of Fabergé (UK) Limited and the Company.
The loan with Macquarie replaces the USD 25 million debt facility entered into in April 2015 and is used for general corporate purposes. The proceeds of the Facilities with Barclays S.A. and BCI will enable MRM to finance its capital expenditure requirements for the Montepuez ruby deposit in Mozambique and provide additional working capital.
Janet Boyce, CFO of Gemfields, commented:
"We are pleased to have agreed these financing facilities after having considered a number of alternatives as well as other offers from various banks. The Facilities, together with Kagem's existing revolving credit facility of USD 30 million with Barclays Bank in Zambia, provides Gemfields with the necessary funding to sustain its growth and expansion plans to increase annual production to approximately 20 million carats of rough rubies in MRM and more than 40 million carats of rough emeralds in Kagem within the next 3 years. Lastly they also assist in smoothing the Company's cash flows given the intermittent nature of revenue in-flows from the coloured gemstone auctions."
ENQUIRIES:
Gemfields | janet.boyce@gemfields.co.uk |
Janet Boyce, CFO | +44 (0)20 7518 7283 |
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Grant Thornton UK LLP |
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Nominated Adviser |
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Philip Secrett/Richard Tonthat/Jamie Barklem | +44 (0)20 7383 5100 |
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J.P. Morgan Cazenove |
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Joint Broker |
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Jamie Riddell | +44 (0)20 7742 4000 |
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BMO Capital Markets Limited |
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Joint Broker |
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Jeff Couch/Neil Haycock/Tom Rider/Jenny Wyllie | +44 (0)20 7236 1010 |
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Macquarie Capital (Europe) Limited Joint Broker Raj Khatri/Ken Fleming/Nick Stamp/Fergus Marcroft |
+44 (0)20 3037 2000 |
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Tavistock |
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Jos Simson/Emily Fenton | +44 (0)20 7920 3150 |
Notes to Editors:
Gemfields plc is the world's leading supplier of responsibly sourced coloured gemstones and is quoted on the AIM division of the London Stock Exchange (ticker: GEM) where it is a constituent of the AIM50 index.
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 a 50% interest in the Kariba amethyst mine in Zambia, as well as controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Colombia, Ethiopia, Madagascar and Sri Lanka.
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 quality coloured gemstones to the global downstream markets. This is a key component of the Company's business model which the Directors believe has played an important role in the appropriate distribution and associated resurgence of the global coloured gemstone sector.
www.gemfields.co.uk