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Audited 2024 Annual Report Released
Gemfields Group Limited
Incorporated in Guernsey. Guernsey registration number: 47656
South African external company registration number: 2009/012636/10
Share code on JSE:GML (General Segment of JSE Main Board) / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Group" or the "Company")
Audited 2024 Annual Report Released
LONDON, 11 APRIL 2025
Gemfields announces the publication of the Company's audited Annual Report and Accounts for
the year ending 31 December 2024 ("2024 Annual Report"). 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 Annual Report and does not contain full or complete details of the
financial results.
Summary
• Total annual revenue of USD 213 million, down from USD 262 million, due to disrupted
market for emeralds in H2 2024 and lower production of premium rubies at MRM
impacting achievable auction revenues.
• Construction of second processing plant in Mozambique is materially on track and on
budget with completion expected by end of H1 2025.
• Mining at Kagem continues to be paused, with emeralds only produced by processing the
pre-mined stockpile. Reasonable emerald production achieved but with a lower rate of
premium emeralds to date.
• Operating costs down to USD 172 million (2023: USD 179 million). Significantly lower
operating costs expected in 2025.
• EBITDA margin of 19.2% (2023: 31.7%) due to lower revenues at MRM and Kagem.
• Significant impairment charges in year, primarily at Kagem (due to weaker emerald market
and pause of mining), MML and Nairoto (both due to halt of operations).
• Adjusted headline loss per share of USD cents 1.8 for the year (2023: Adjusted headline
earnings per share of USD cents 1.5)
Announcement of Proposed Rights Issue
As set out in the trading statement issued earlier today, Gemfields also announces it will be seeking
shareholder approval to, amongst other things, issue 556,203,396 New Shares to raise
approximately USD 30 million by way of a fully committed and underwritten Rights Issue (the
"Proposed Rights Issue"). The Proposed Rights Issue, which subject to shareholder approval, shall
be fully underwritten by Gemfields' two largest shareholders, Assore International Holdings
Limited ("AIH") and Rational Expectations (Pty) Ltd ("Rational"). Should shareholder approval
be obtained at an Extraordinary General Meeting ("EGM") of the Company, the Company will
launch the Proposed Rights Issue which will be offered at a UK Issue Price of 4.22 pence per New
Share and SA Issue Price of ZAR 1.06860 per New Share, on a 10 New Shares for every 21 Existing
Shares basis and will be available to all qualifying shareholders.
AIH and Rational have also entered into Pre-Funding Agreements with the Company, pursuant to
which each of AIH and Rational shall make loans equivalent to their pro-rata entitlement in the
Proposed Rights Issue in the amounts of USD 8,742,000 and USD 4,646,000, respectively (together
the "Loans") to the Company, subject to the publication of the EGM Circular. The Loans will
provide the Company with an immediate working capital injection pending the completion of the
Proposed Rights Issue.
The full announcement, Notice of EGM and publication of the EGM Circular setting out details
of the Proposed Rights Issue is expected to be released following the receipt of final regulatory
approval, and will also be made available on the Company's website at: www.gemfieldsgroup.com.
Sean Gilbertson, CEO of Gemfields, commented:
"2024 witnessed our 50th Zambian emerald auction, the 10-year anniversary of our first ever Mozambican ruby
auction and a new chapter of capital projects in Gemfields' growth trajectory as a world-leading responsible miner of
coloured gemstones.
Market conditions through 2024 were more challenging than we could have anticipated. Revenues at both emerald
and ruby auctions were materially lower than the Group experienced in recent years due to three principal factors:
a) disturbed emerald market dynamics arising from the oversupply of Zambian emeralds at discounted prices
by a competing Zambian emerald producer during the second half of 2024, compounded by conflicting
auction dates and so giving rise to a poor Zambian emerald market outlook for the first half of 2025;
b) lower-than-expected production of premium rubies at MRM; and
c) a weaker luxury and gemstone market generally, given economic difficulties in China and widespread Page 2 of 6
geopolitical turbulence.
Furthermore, the Group faced significant operational challenges in relation to civil unrest and associated supply chain
interruptions in Mozambique as a result of the contested general election in October 2024. Our increased risk profile
was reflected in a significant reduction in our share price. In line with the Company's commitment to the safety and
security of its personnel, mining operations at MRM were temporarily paused towards the end of the year following
an attempt to invade MRM's residential area.
Management views the present challenges as transient. While our planning of Gemfields' growth programme did not
envisage the requirement of additional funds from shareholders, the scope and scale of the difficulties we have
encountered contemporaneously has unfortunately necessitated a change in approach.
In order to navigate this turbulent period and complete the construction of the second processing plant at MRM, a
project we consider to be pivotal to the Group's future, management undertook an extensive programme of cost cutting
across the Group, as announced in a strategic update towards the end of 2024, including the suspension of mining
at Kagem in light of the poor emerald market. We also confirmed we would consider options outside of the Group
for our wholly owned luxury jeweller Fabergé as a means of addressing a forecast near-term working capital shortfall.
This work did not yield the certainty of funds necessary within the desired time period and therefore, as announced
today, 11 April 2025, subject to regulatory and shareholder approvals, the Board has recommended a Proposed
Rights Issue to address the short-term funding requirements of the Group.
I remain of the opinion that Gemfields' mining operations are world-class assets and that the Group's strategic goals
remain wholly relevant. Once fully operational, MRM's second processing plant is expected to triple the processing
rate and therefore add considerably to the mine's ruby production and revenues. The coloured gemstone market is
expected to recover and continue its medium to long-term upward trajectory. I am confident that there is an exciting
growth phase for Gemfields on the other side of this near-term funding shortfall, and I am thankful to our shareholders
and our experienced operational teams for leaning into the challenges we are facing together."
Any investment decisions by investors and/or shareholders should be based on careful
consideration of the full announcement as a whole. The 2024 Annual Report is available for
viewing on the Company's website at www.gemfieldsgroup.com.
The Annual Report can also be accessed by following the link below:
https://senspdf.jse.co.za/documents/2025/jse/isse/GMLE/AR2024.pdf.
Key audit matters and unmodified opinion can be found in EY's full auditor's report within the
Annual Report.
Financial and Operating Results
2024 2023
USD'000 USD'000
Revenue 212,852 262,019
EBITDA[1] 40,843 83,081
(Loss)/profit from operations (97,953) 17,387
Net (loss)/profit (100,796) (2,829)
(Loss)/profit attributed to owners of the (82,143) (10,090)
parent
USD cents USD cents
(Loss)/earnings per share (7.0) (0.8)
Headline (loss)/earnings per share (2.1) (0.9)
Adjusted (loss)/earnings per share (1.8) 1.5
Dividend per share[2] - 0.857
USD'000 USD'000
Net Asset Value (Parent only) 345,723 438,172
Net (debt)/cash (80,431) 11,147
[1] Earnings before interest, taxation, depreciation and amortisation, adjusted to exclude one-off impairments made to the Group's non-
current assets, inventory, fair value gains or losses on the Group's non-core equity investments, share based payments, other impairments and
provisions.
[2] 2023 figure is based on the USD 10 million dividend announced on 25 March 2024 with a share count as at 22 March 2024 of
1,166,695,130.
Full year results shareholder and analyst webcast
The Company intends to schedule a shareholder and analyst webcast after receiving final regulatory
approval for the release of the Proposed Rights Issue shareholder Circular.
In the meantime, should you wish to ask a question, please contact ir@gemfields.com.
Forward Looking Information
This announcement contains certain forward-looking statements which relate to the possible future
performance and financial position of the Group. All forward-looking statements are solely based
on the views and considerations of the directors. These statements involve risk and uncertainty as
they relate to events and depend on circumstances that may or may not occur in the future. The
Group does not undertake to update or revise any of these forward-looking statements publicly,
whether to reflect new information, future events or otherwise. These forward-looking statements
have not been reviewed or reported on by the Group's external auditors.
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, please contact us on:
ir@gemfields.com
This announcement contains inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) no. 596/2014 which forms part of domestic UK law pursuant to the European
Union (withdrawal) act 2018 ("MAR").
ENQUIRIES
GEMFIELDS Sean Gilbertson / David Lovett / Ian Hughes
ir@gemfields.com
T: +44(0) 20 7518 3400
SPONSOR (JSE) Investec Bank Limited
NOMINATED ADVISER Panmure Liberum
(AIM) & BROKER Scott Mathieson / Amrit Mahbubani / John More
T: +44(0) 20 3100 2222
PRESS ENQUIRES, GEMFIELDS Helena Choudhury / Albertina Namburete
HEAD OFFICE, LONDON helena.choudhury@gemfields.com / albertina.namburete@gemfields.com
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields is a world-leading responsible miner and marketer of 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 licences 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 through Fabergé designs, advancing the wider group's "mine and market" vision.
Gemfields has developed a proprietary grading system and a pioneering auction platform to
provide a consistent supply of coloured gemstones to downstream markets, a key component of
Gemfields' business model that has played an important role in the growth of the global coloured
gemstone sector.
GEMFIELDS
GEMFIELDS.COM | INVESTORS |FOUNDATION
INSTAGRAM | FACEBOOK | X | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | X | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
Date: 11-04-2025 08:30:00
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