Wrap Text
Reviewed Interim Results for the Six Months Ending 30 June 2020
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")
Reviewed Interim Results for the Six Months Ending 30 June 2020
LONDON, 18 SEPTEMBER 2020
Gemfields hereby announces the Company's financial results for the six months ending 30 June
2020 ("2020 Interim Results"). The content of this short-form announcement is the responsibility
of the board of directors of the Company.
Shareholders are advised that this short-form announcement represents a summary of the
information contained in the full announcement and does not contain full or complete details of
the financial results.
Sean Gilbertson, CEO of Gemfields, commented:
“Our financial results in H1 2020 reflect the immense impact which Covid-19 and its associated
travel, quarantine and other restrictions have had on Gemfields’ operations and our ability to host
gemstone auctions. We have been able to host only one auction thus far this year – the February
2020 auction of commercial quality emeralds in Lusaka, yielding USD 11.4 million. Our auctions
originally scheduled for May, June and August 2020 have been cancelled.
We entered the pandemic with a strong balance sheet and have implemented measures to
progressively reduce costs to the extent that the pandemic protracts, with monthly operating
expenditure dropping significantly during the second quarter. Due to the ongoing levels of
uncertainty, Gemfields is unable to provide reliable guidance as to when it might be able to next
host auctions or generate meaningful revenue from gemstone sales. We continue to develop
alternative gemstone selling mechanisms but these too are considerably hampered by widespread
travel, quarantine and congregation restrictions. Work on an online auction platform is nearing
Gemfields Group Limited, Royal Chambers, St Julian’s Avenue, St Peter Port, GY1 4HP, Guernsey
T +44 (0)1481 731 554
gemfieldsgroup.com
completion, but this approach would still require in-person viewings of the gemstones by our
clients, potentially via ‘shuttle viewings’ in different cities. We also continue to seek alternative
cash sources, including additional debt and a sale of our 6.5% indirect stake in Sedibelo Platinum.”
Any investment decisions by investors and/or shareholders should be based on the consideration
of the full announcement as a whole and shareholders are encouraged to review the full
announcement which is available for viewing on the Company’s website www.gemfieldsgroup.com
and by following the below link:
https://senspdf.jse.co.za/documents/2020/jse/isse/GMLE/Interim20.pdf
The full announcement may also be requested at Gemfields’ registered office, PO Box 186, Royal
Chambers, St. Julian’s Avenue, St. Peter Port, Guernsey, GY1 4HP, at no charge, during office
hours from Monday, 21 September 2020. Investors and/or shareholders may also request copies
of the full announcement from the Company Secretary via companysecretary@gemfields.com.
Financial and Operating Results:
Six months ended Six months ended
30 June 2020 30 June 2019 change
USD’000 USD’000 %
Revenue 15,000 88,960 (83%)
Operating (Loss)/Profit (62,491) 23,497 (366%)
Net (Loss)/Profit (56,737) 12,443 (556%)
LPS/EPS(1) (0.04) 0.01 (500%)
HLPS/HEPS(1) (0.03) 0.01 (400%)
EBITDA(2) (22,466) 33,144 (168%)
30 June 2020 30 June 2019 change
USD’000 USD’000 %
Net Asset Value (Parent only) 442,728 487,971 (9%)
Net Cash 9,281 35,468 (74%)
(1) Earnings Per Share (“EPS”) and Headline Earnings Per Share (“HEPS”) disclosed to 2 d.p. in the table above.
(2) Earnings before interest, taxation, depreciation and amortisation.
The short-form announcement has itself not been audited. However, the financial information
included herein has been extracted from the interim financial statements which have
been reviewed by the Company’s auditors, BDO LLP. The auditor's report on those financial
statements was not qualified but included a material uncertainty over the going concern assumption
and a reference to the Directors’ disclosures on going concern.
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
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
M: +44(0) 20 3100 2222
FINANCIAL PR/ IR
Camarco
Gordon Poole / Jennifer Renwick / Nick Hennis
T: +44(0) 20 3757 4980
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields Group Limited
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.
Date: 18-09-2020 08:00:00
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