Gemfields Group to cut costs and streamline business activity

LONDON – Following Gemfields’ most recent emerald and ruby auctions (the results of which were published on 22 November and 12 December 2024 respectively), the Group announces that it has taken, and will continue to undertake, actions to cut costs and streamline business activity amid four key challenges being encountered concurrently, while maintaining focus on the Group’s principal growth project, completion of the second ruby processing plant at Montepuez Ruby Mining Limitada in Mozambique (“MRM”).

Gemfields’ most recent emerald and ruby auctions have earned revenues of USD 16.1 million and USD 46.2 million respectively, as previously announced. These revenues are materially lower than the company has experienced in recent years due to three principal factors:

1. disturbed emerald market dynamics arising from an 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 giving rise to a poor Zambian emerald market outlook during the first half of 2025;
2. lower production of premium rubies at MRM; and
3. a weaker luxury and gemstone market generally given economic difficulties in China and geopolitical turbulence.

The fourth challenge the Company faces relates to the ongoing civil unrest and associated supply chain and logistics interruptions in Mozambique as a result of the contested general election. While mining operations at MRM have thus far remained unaffected, the overall operating risk profile has increased with the Company’s priority remaining the safety and security of Gemfields’ employees, contractors and community members.

Gemfields regards the construction of the second ruby processing plant at MRM as a critical project to increase premium ruby production and deliver additional revenue for the Group by the end of 2025. Construction presently remains materially on budget and on schedule for completion by the end of H1 2025 and Gemfields is working closely with its partners to deliver this project as planned.