16 Sep - 5 min read

Trading Statement

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, 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-


                          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 / Nick Hennis
                                   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                                                                Page 3 of 4
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: 16-09-2021 08:00:00
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