Wrap Text
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, 25 MARCH 2021
For the year ended 31 December 2020.
In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, Gemfields is
reasonably certain that its net loss after tax will be USD 93.2 million for the year ended 31
December 2020 compared to a net profit after tax of USD 39.1 million for the comparative period.
In ZAR terms, the net loss after tax is expected to be ZAR 1,535 million (ZAR 565 million net
profit after tax for the comparative period).
Loss per share is expected to be USDc 7.0 for the year ended 31 December 2020 compared to
earnings per share of USDc 2.0 for the comparative period. In ZAR terms, the loss per share is
expected to be ZAR 1.20 (ZAR 0.32 earnings per share for the comparative period).
Gemfields’ 2020 auction schedule was severely impacted by the many travel, quarantine and
congregating restrictions put in place to mitigate Covid-19 contagion. The pandemic has meant
that no traditional Gemfields auctions have been held since February 2020, when USD 11.4 million
was realised from the sale of commercial quality emeralds in Lusaka. The Company subsequently
conducted a series of sequential emerald mini-auctions during November and December 2020,
generating total revenues of USD 10.9 million. In 2020 therefore, aggregate auction revenues were
USD 22.3 million, a fall of USD 178.2 million (or approximately 89%) when compared with USD
200.5 million in 2019. There was no ruby revenue in 2020. During the year Fabergé recorded
revenues of USD 7.1 million (USD 10.5 million for the comparative period). A USD 11.5 million
impairment charge has been recognised against Fabergé’s intangible asset for the year, driven by
reduced revenue expectations arising from Covid-19 and general market conditions. A review of
Gemfields’ shareholding in Sedibelo Platinum Mines Ltd (“Sedibelo”) has resulted in a fair value
write down of USD 27.9 million to USD 29.6 million.
Excluding the impairment charge against the Fabergé intangible asset (and including the fair value
loss against Sedibelo), the headline loss per share is expected to be USDc 6.0 for the year ended 31
December 2020 compared to headline earnings per share of USDc 1.0 for the comparative period.
In ZAR terms, headline loss per share is expected to be ZAR 1.04 (ZAR 0.15 headline earnings
per share for the comparative period).
The Company’s weighted average shares in issue during the year ended 31 December 2020 was
1,169,141,485 (1,264,903,398 during the year ended 31 December 2019).
1 Net (loss)/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 year ended 31 December 2020 are expected to
be released on SENS and RNS on or around 30 March 2021.
Further to the Company’s announcement on 1 March 2021, Gemfields is pleased to confirm that
operations at both its 75%-owned Kagem Mining Limited (“Kagem”) emerald mine and 75%-
owned Montepuez Ruby Mining Limitada (“MRM”) ruby mine have now restarted in a phased
manner. It is expected that mining operations at both Kagem and MRM will ramp back up to full-
scale by the end of April 2021.
The Company is also pleased to announce that its series of 7 ruby and 5 emerald auctions
commenced on 15 March 2021. As part of this programme, selected lots are being made available
for in-person and private viewings by customers in Bangkok, Dubai, Jaipur, Singapore and Tel
Aviv. The series of ruby and emerald auctions are expected to complete on 8 April 2021 and 17
April 2021 respectively.
Shareholder and analyst webcast
A shareholder and analyst webcast is presently scheduled to take place on Tuesday, 30 March 2021
at 08.30 am (UK) / 09.30 am (South African) during which Sean Gilbertson and David Lovett will
present the Company’s 2020 Annual Results.
Shareholders who wish to participate in the webcast are requested to register via the link below:
https://investorpresentations.co.za/gemfields/events/22-gemfields-group-limited-annual-
results-presentation
Shareholders are requested to register for the event by 5pm BST on 29 March 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 BST on 29 March 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 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
Clayton Bush / 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 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: 25-03-2021 12:00:00
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