Gemfields Group Limited · JSE:GML
Gemfields — Investor Presentation (November 2024)
39 slides from Gemfields's investor presentation, November 2024
Slide 1: Investor Update
Investor Update N OV E M B E R 2 0 2 4
Slide 2: Legal Disclaimer
Legal Disclaimer INVESTOR UPDATE – NOVEMBER 2024 This document, which has been compiled by Gemfields Group Limited (the “Company”), comprises Certain statements in this presentation, or given in response to questions, may constitute forward- written materials and information regarding the Company, i
Slide 3: Table of Contents
Table of Contents INVESTOR UPDATE – NOVEMBER 2024 Section One Introduction Slides 5 to 11 Section Two Investing in Growth Slides 13 to 16 Section Three Operational & Market Overview Slides 18 to 24 Section Four Financial Overview Slides 26 to 29 Section Five Summary Slide 31 Section Six Appendix Sli
Slide 4: Introduction
Introduction SECTION ONE A Story in Every Gemstone | Discover more about Gemfields at gemfields.com
Slide 5: Gemfields Group Limited – Introduction – Strategy in action
Gemfields Group Limited – Introduction – Strategy in action Our Mission Gemfields strives to be the global leader in African emeralds, rubies and sapphires, promoting transparency, trust and responsible mining, while creating a positive impact for our host communities and countries. 1 2 3 4 Our Stra
Slide 6: Gemfields Group Limited – Board of Directors
Gemfields Group Limited – Board of Directors Chair Executive Directors Appointed Chair 1 July 2024 Appointed CEO 17 July 2017 Appointed CFO 31 March 2018 Current Board Roles AngloGold Ashanti Vergelegen Wines Recent Career History De Beers Group Chief Executive (2016-2023) Bruce Cleaver Sean Gilbert
Slide 7: The Growth of Colour
The Growth of Colour UNComTrade global yearly exports and imports of rubies, sapphires and emeralds (UNComtrade HS 710391 & 710310) GLOBAL YEARLY EXPORTS AND IMPORTS OF RUBIES, SAPPHIRES AND EMERALDS UNCOMTRADE HS 710391 & 710310, USD MILLION, ANNUAL 2023 data not yet complete 10 1. Remarkable indus
Slide 8: World record auction prices (per carat) for rubies and emeralds exceed white diamonds
World record auction prices (per carat) for rubies and emeralds exceed white diamonds 1. The prices of rubies and emeralds are determined by many factors, including seven Cs: AUCTION WORLD RECORDS (Cut & Polished Gems) VIA WORLD-FAMOUS AUCTION-HOUSES, USD PER CARAT USD per carat 1,400,000 1,200,000
Slide 9: Two World-Class Coloured Gemstone Mines
Two World-Class Coloured Gemstone Mines World’s single-largest producing emerald and ruby mines Kagem emerald mine Montepuez ruby mine Zambia Mozambique 75% owned 75% owned ~25% ~50% global supply global supply of rough of rough emeralds rubies Licence Area: 42 km2 Licence Area: 349 km2 – Only 10% i
Slide 10: Gemfields Group revenue (2009 – 2024 YTD)
Gemfields Group revenue (2009 – 2024 YTD) KAGEM & MRM AUCTION REVENUE + FABERGÉ SALES ORDERS AGREED USD MILLION, ANNUAL USD million Two more a. Proven long-term growth auctions coming 350 in a previously fragmented this year. and underdeveloped market 300 b. USD 2+ billion of 250 emeralds and rubies
Slide 11: How Gemfields Operates in the Coloured Gemstone Market
How Gemfields Operates in the Coloured Gemstone Market Emeralds Rubies Sapphires Gemfields Assets (Zambia) (Mozambique) (Madagascar) Exploration Kagem MRM, ERM Assessing sites Mining Kagem MRM None currently Grading Propriety grading system There is no industry standard for grading coloured gemstone
Slide 12: Investing in Growth
Investing in Growth SECTION TWO A Story in Every Gemstone | Discover more about Gemfields at gemfields.com
Slide 13: Capital expenditure to continue into 2025 in Mozambique
Capital expenditure to continue into 2025 in Mozambique KAGEM (Emerald) - CAPITAL EXPENDITURE MRM (Ruby) - CAPITAL EXPENDITURE USD MILLION, ACTUAL CASH COST BASIS, MONTHLY USD MILLION, ACTUAL CASH COST BASIS, MONTHLY USD million USD million 16 16 14 14 July 2023 – June 2024 PP2 payments 12 Replaceme
Slide 14: Near peak rolling 12-month capital expenditure in current investment cycle
Near peak rolling 12-month capital expenditure in current investment cycle KAGEM (Emerald) - CAPITAL EXPENDITURE MRM (Ruby) - CAPITAL EXPENDITURE USD MILLION, ACTUAL CASH COST BASIS, ROLLING 12 MONTHS USD MILLION, ACTUAL CASH COST BASIS, ROLLING 12 MONTHS USD million USD million 45 45 ~Mid-2025 40 4
Slide 15: Major Growth Driver – MRM’s Second Processing Plant
Major Growth Driver – MRM’s Second Processing Plant Triples MRM’s processing capacity from 200 tonnes per hour to 600 tonnes per hour On budget (~USD 70 million) and on target to be operational by end of the first half of 2025. First revenues during H2 2025. Part of the construction for MRM’s second
Slide 16: Additional Growth Drivers: Kagem plant upgrade and ERM
Additional Growth Drivers: Kagem plant upgrade and ERM Kagem processing plant upgrade Eastern Ruby Mining (“ERM”) a. ~50% increase in processing capacity from a. Pits for bulk-sampling and production of ore have 50 tonnes per hour to 75 tonnes per hour been established (see top picture) b. Increased
Slide 17: Operational & Market Overview
Operational & Market Overview SECTION THREE A Story in Every Gemstone | Discover more about Gemfields at gemfields.com
Slide 18: Kagem Emerald Mine Montepuez Ruby Mine
Kagem Emerald Mine Montepuez Ruby Mine 11-Nov-24 gemfields.com 18
Slide 19: Revenue comes from ‘premium’ gemstones, not total weight
Revenue comes from ‘premium’ gemstones, not total weight VARIATION IN KAGEM PRICING (Rough Emeralds) VARIATION IN MRM PRICING (Rough Rubies) Rough gemstone, USD per gram Rough gemstone, USD per gram ~USD 58,000 78% of auction revenue 91% of auction revenue ~USD 700,000 per gram comes from just comes
Slide 20: Premium gemstone production to September 2024
Premium gemstone production to September 2024 CUMULATIVE PREMIUM EMERALD PRODUCTION CUMULATIVE PREMIUM RUBY PRODUCTION CARATS, BY CALENDAR YEAR CARATS, BY CALENDAR YEAR 280,000 100,000 2022 259,501 2021 240,000 2021 83,972 230,545 80,000 August 2024 2022 Kagem’s best premium emerald 78,427 200,000 p
Slide 21: Only 10% of MRM’s licence is within current Life-of-Mine
Only 10% of MRM’s licence is within current Life-of-Mine Known gravel-bed area determined by MRM’s licence area - 349km2 - 6x the size of Manhattan island auger drilling and geological modelling Mined area Auger Drill Outline Unexplored Unexplored We have mined about 20% of the known Auger Drill “gr
Slide 22: Growth in revenue from emeralds and ruby far outweighs production
Growth in revenue from emeralds and ruby far outweighs production KAGEM MRM PRODUCTION AUCTION REVENUES PRODUCTION AUCTION REVENUES PREMIUM EMERALDS + EMERALDS PREMIUM RUBIES + TUMBLE RUBIES + (USD MILLION) (USD MILLION) (CARATS PRODUCED) RUBIES (CARATS PRODUCED) ‘000 Carats USD million ‘000 Carats
Slide 23: Historic auction revenue and price paid per carat for Kagem and MRM
Historic auction revenue and price paid per carat for Kagem and MRM KAGEM MRM 100 100 90 Commercial-quality auction Higher-quality auction 90 Commercial-quality auction Mixed-quality auction 80 80 Ruby Auction Revenues 70 Emerald Auction Revenues 70 USD MILLIONS 60 USD MILLIONS 60 50 50 40 40 30 30
Slide 24: China Leads Concerns about the Luxury Sector
China Leads Concerns about the Luxury Sector RECENT NEWS HEADLINES ON LUXURY GROUPS LUXURY GROUPS’ RECENT SHARE PRICE PERFORMANCE Share Price % Change vs % Change vs % Change vs Stock 12-Month 12-Month Current 12-Month 12-Month 12 Months High Low (at 5 Nov 2024) High Low Ago Hermes International SCA
Slide 25: Financial Overview
Financial Overview SECTION FOUR A Story in Every Gemstone | Discover more about Gemfields at gemfields.com
Slide 26: 2024 H1 – Interim Results Summary
2024 H1 – Interim Results Summary Revenues - USD Operating expenses - USD EBITDA1 - USD 128.0 million 17% 78.3 million 3% 49.6 million 32% 20% 41% 2023 H1: 153.6 million 2023 H1: 80.6 million 2023 H1: 73.0 million EBITDA Margin – 38.8% USD million USD million USD million 200 (200) 200 One auction wi
Slide 27: 2024 H1 – Interim Results Summary
2024 H1 – Interim Results Summary Adjusted Earnings Per Share Free Cash Flow1 Net Cash + Auction Receivables2 USDc USD USD 1.0 cents 49% 3.3 million 87% 21.1 million 83% 20% 41% 2023 H1: 1.9 cents 2023 H1: 25.2 million 2023 H1: 121.1 million USD cents per share USD million USD million 5.0 200 200 4.
Slide 28: Costs remain an area of focus
Costs remain an area of focus Total Operating Expenses per cash flow statement Kagem MRM Development Corporate USD 23.7 million USD 32.3 million USD 6.9 million USD 12.4 million Down 28% Down 28% Up 36% Down 6% Up 87% Up 13% Up 5% Down 20% vs H1 2023 vs H2 2023 vs H1 2023 vs H2 2023 vs H1 2023 vs H2
Slide 29: Net Debt – Will deepen as investment continues
Net Debt – Will deepen as investment continues USD million 200 180 160 At 30 June 2024 140 120 Gross cash: USD 22.3 million 100 Gross debt: 66.7 million Net debt: USD 44.4 million 80 60 Outstanding auction receivables: 40 USD 65.5 million 20 Net cash with receivables: USD 21.2 million - (20) (40) 10
Slide 30: Summary
Summary SECTION FIVE A Story in Every Gemstone | Discover more about Gemfields at gemfields.com
Slide 31: Four Key Takeaways
Four Key Takeaways We operate two world-class mines (in an exciting sector) and which enjoy solid track-records over more than 10 years. We continue to invest in future growth with additional revenue drivers expected to be online in H2 2025. MRM’s second processing plant (completion expected by the
Slide 32: Appendix
Appendix SECTION SIX A Story in Every Gemstone | Discover more about Gemfields at gemfields.com
Slide 33: Gemfields Group Limited – Corporate Structure
Gemfields Group Limited – Corporate Structure Assore International Ophorst Van Marwijk Van Lanschot Kempen Diacolor International Rational Expectations Oasis 1 Fidelity International Other Holdings Limited Kooy Vermogensbeheer N.V DMCC No.of shares: No. of shares: No.of shares: No. of shares: No.of
Slide 34: Fabergé - Finger on the pulse of the luxury-goods market
Fabergé - Finger on the pulse of the luxury-goods market Fabergé is one of the world’s most renowned names in Fabergé luxury, underscored by a well-documented, rich, illustrious heritage. As a wholly owned subsidiary of Gemfields, Fabergé provides direct access to the end consumer of Iconic and pres
Slide 35: Summary of 2023/2024 Auctions
Summary of 2023/2024 Auctions Gemfields – Auction schedule 2023/2024 Auction lots split into multiple ‘auction parts’. Sealed bids entered on specialised online system 2023 2024 March June September December March June September December 1 2 Auction location Jaipur Bangkok Jaipur Bangkok Jaipur Bang
Slide 36: Considerable royalties, tax and dividends paid to host countries
Considerable royalties, tax and dividends paid to host countries G-FACTOR FOR NATURAL RESOURCES - UPDATED FIGURES A Gemfields-developed measure to promote greater transparency regarding the level of natural resource wealth shared with the governments of host countries, recognising the royalties, tax
Slide 37: Committed to making capital returns when possible
Committed to making capital returns when possible CAPITAL RETURNS TO SHAREHOLDERS CAPITAL RETURNED, USD MILLION, PER CALENDAR YEAR USD million 50 45 40 35 30 25 20 15 10 5 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD Dividends Buy-backs USD 90 million returned to shareholders be
Slide 38: Competent Persons Reports (SRK Consulting – 2019)
Competent Persons Reports (SRK Consulting – 2019) KAGEM MRM Effective Date 1 July 2019 1 July 2019 Competent Person SRK Consulting SRK Consulting Reporting code - mineral resources and mineral reserves JORC Code (2012 edition) JORC Code (2012 edition) Net Present Value (post-tax -10% Discount Rate)
Slide 39: Inclusion image courtesy of Richard Hughes / Lotus Gemology
1 CATHEDRAL PI AZZA LONDON SW1E 5BP UNITED KINGDOM T +44 20 7518 3419 Inclusion image courtesy of Richard Hughes / Lotus Gemology
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