Gemfields announce second highest revenues in its history
Gemfields has announced second highest annual revenues in Gemfields’ history at USD 262 million, despite withdrawal of one higher-quality emerald auction.
OTHER HIGHLIGHTS:
- Healthy prices paid at 2023 auctions of Gemfields’ rough coloured gemstones
- Lower production of both premium emeralds and rubies in 2023 compared to 2022
- Construction of second processing plant in Mozambique is fundamentally on track and on budget with completion expected during H1 2025
- Operating costs broadly flat at USD 179 million (2022: 175 million)
- EBITDA margin of 31.7% (2022: 48.6%) due primarily to the withdrawn November 2023 higher-quality emerald auction due to lower production
- Non-core 6.54% equity stake in Sedibelo Resources Ltd written down from USD 32 million by USD28 million to USD 4 million due to peer valuations and Sedibelo’s cessation of mining and processing operations
- Adjusted headline earnings per share of USD cents 1.5 for the year (2022: USD cents 4.8)
- USD 45 million of capital returned to shareholders during 2023 (USD 35 million dividend paid and USD 10 million share buy-back) reflecting the previous year’s outstanding results
- New dividend of USD 10 million declared (USD cents 0.857 per ordinary share) and payable in June 2024
Sean Gilbertson, CEO of Gemfields, commented: “Gemfields had a year of both achievements and challenges in 2023. The Group recorded its second highest annual revenues and saw healthy prices paid at our auctions of rough emeralds and rubies. Production of gemstones in the premium quality category has been weaker at both Kagem and Montepuez Ruby Mining (“MRM”) when compared with 2022 and resulted in one auction of higher quality emeralds being withdrawn from our schedule in November 2023, negatively affecting our results for 2023.
“2023 also saw the start of a period of considerable investment across the Group spurred by the position of financial strength prevailing at the end of 2022. We believe that the short-term impact of these investments on our financial performance and position will lead to a stronger and expanded business, particularly at MRM, where construction of a second processing plant – tripling our throughput capacity – is well underway.
“2024 will continue to see considerable investment across our mining and development operations. Our colleagues are hard at work to optimise the value of these investments.
“We continue our commitment to return capital to shareholders, with a smaller USD 10 million dividend payable in June 2024.
“The market for coloured gemstones can and does shift from year to year. While prices for our emeralds and rubies remain healthy, they are certainly down on the remarkable figures we saw in 2022. We are convinced that we have the right strategy and will continue our efforts of raising the profile and attractiveness of coloured gemstones on a global basis.
