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 full announcement and does not contain full or complete details of the financial results.
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).
Gemfields is pleased to announce the result of an auction of predominantly commercial quality rough emerald held in Lusaka, Zambia from 19-22 August 2019. The emeralds were extracted by Kagem Mining Ltd in Zambia (“Kagem”, which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia). The proceeds of this auction will be fully repatriated to Kagem in Zambia, with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.
Gemfields shareholders are advised that the Company has released information about its business related and operational results and financial position up to and including 30 June 2019. The figures have been produced on a monthly‐basis for Gemfields’ 75% owned Kagem emerald mine, its 75% owned Montepuez ruby mine and Fabergé – the iconic luxury brand.
On 15 April 2019, GGL announced the conditional sale of its stake in Jupiter Mines Limited (“Jupiter”), together with its intention to announce, in June 2019, a special dividend together with the associated timetable. The proposed special dividend of USD 24,685,829 (the “Distribution Pool”) would represent a distribution of USD 0.0175 per share.
On 10 December 2018, Gemfields announced that Gemfields Canada Inc. (a 100% subsidiary of Gemfields) had agreed to sell its 50% stake in Kariba Minerals Ltd (“Kariba”), the Zambian amethyst mine, to ZCCM Investments Holdings plc (“ZCCM”). That transaction was subject to assorted administrative steps and regulatory approvals, including from the Zambian Competition and Consumer Protection Commission and the Zambian Ministry of Mines.
Gemfields is pleased to announce that it has agreed to establish a joint venture company with Mwiriti Limitada (‘Mwiriti’), a Mozambican registered company, in order to explore and progress opportunities arising from 12 greenfield licences presently held by Mwiriti. The new joint venture company will be incorporated in Mozambique with Gemfields owning 75% and Mwiriti 25%. Mwiriti is Gemfields’ existing partner in Montepuez Ruby Mining Limitada (“MRM”) where Mwiriti also owns 25%.
As previously disclosed in the Company’s Annual Report for the year ended 31st December 2018, Brian Gilbertson , a director, held an indirect shareholding in the Company’s shares via an interest in Pallinghurst (Cayman) Founder L.P. On 19th June 2019, 3,397,998 shares in the Company were transferred, off market and at nil cost, from Pallinghurst (Cayman) Founder L.P. to Affinity Trust Ltd (as trustee of the Brian Patrick Gilbertson Discretionary Settlement).
Gemfields is pleased to announce the results of an auction of rough rubies in Singapore from 11 – 15 June 2019. The rough rubies were extracted from the licence, held and operated by Montepuez Ruby Mining Limitada (“MRM”), which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada.
Shareholders are advised that Gemfields has commenced a share repurchase programme of the Company’s ordinary shares. The share repurchase programme has been implemented by the Company in accordance with the general authority received by way of shareholders’ resolutions passed at the annual general meeting held on 10 May 2019.