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GEMFIELDS GROUP LIMITED - Trading statement

Release Date: 18/09/2019 07:05
Code(s): GML     PDF:  
 
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Trading statement

GEMFIELDS GROUP LIMITED
 (Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: GML.BH ISIN: GG00BG0KTL52
Share code on the JSE: GML
("Gemfields" or the "Company")


Trading Statement


Gemfields is reasonably certain that its net profit after tax will be USD 12.4 million for the 6-month period to 30 June
2019 compared to a net profit after tax of USD 16.0 million for the comparative period of 6 months to 30 June 2018.
In ZAR terms, net profit after tax will be ZAR 177 million (ZAR 197 million net profit after tax for the comparative
period).

Earnings and headline earnings per share are expected to be USDc 1.0 for the 6-month period to 30 June 2019
compared to earnings and headline earnings per share of USDc 1.0 for the comparative period. In ZAR terms, earnings
and headline earnings per share will be ZAR 0.11 (ZAR 0.12 earnings and headline earnings per share for the
comparative period).

The Company’s weighted average shares in issue during the 6 months ending 30 June 2019 was 1,314,277,424
(1,318,856,096 at 30 June 2018).

Gemfields’ two key operating assets, MRM and Kagem, generated revenues of USD 50.0 million (USD 71.8 million for
the comparative period) and USD 33.2 million (USD 21.0 million for the comparative period) respectively during the
6-month period to 30 June 2019 and Fabergé recorded revenues of USD 3.8 million (USD7.0 million for the
comparative period). During the period the Company entered into an agreement to sell its entire stake in Jupiter
Mines Ltd (“Jupiter”) receiving 50% of the sale proceeds during the period with the remaining 50% of the sale
proceeds due in November 2019. The Company additionally received a dividend from Jupiter of USD 2.6 million and
recorded mark-to-market gains of USD 7.6 million from its Jupiter holding during the period due to a rise in the Jupiter
share price from the beginning of the period. Gemfields’ investment in SPM is maintained at the same valuation as
at 31 December 2018.

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 2019 are expected to be released on SENS on or around 20
September 2019.

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.

Further information on Gemfields Group Limited can be found at www.gemfieldsgroup.com
To join our press release mailing list, click here: gemfields@gemfields.com
For any press enquiries please contact us on investor.relations@gemfields.com



Guernsey
18 September 2019

Sponsor
Investec Bank Limited

Date: 18/09/2019 07:05:00
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