Appointment of Non-Executive Director

Gemfields is pleased to announce that Mary Reilly will join the Board as an independent non-executive director with immediate effect. Mary also joins Gemfields’ Audit Committee in place of its Non-Executive Chairman, Martin Tolcher.

Invitation to shareholders: the Company’s Remuneration Policy

At the Company’s AGM on 24 June 2020, more than 25% of votes were cast against non-binding advisory vote number 1 (to endorse the Company’s Remuneration Policy) and more than 25% of votes were cast against non-binding advisory vote number 2 (to endorse the Company’s Remuneration Implementation Report).

Proposed Sale of Stake in Sedibelo Platinum

Gemfields Group Limited (“Gemfields”) announces that it has commenced a sale process for its 23.65% equity holding in Pallinghurst Ivy Lane Capital S.à r.l, a company incorporated in Luxembourg (“Ivy Lane”). Ivy Lane in turn owns 27.64% of Sedibelo Platinum Mines Limited (“SPM”) giving Gemfields an effective and indirect interest in SPM of approximately 6.54%. As previously announced, SPM is not considered a core part of Gemfields’ strategy.

Update on Gemfields’ Auction Programme

Gemfields Group Limited (“Gemfields”) hereby provides an update regarding its auction programme. Gemfields’ typical auction schedule consists of five to six auctions per year: two of mixed-quality rubies and three to four of emeralds (split between higher quality and commercial quality). In 2019, Gemfields’ six auctions accounted for 93% of total group revenue (approximately USD 200 million out of some USD 216 million) with USD 120 million of revenue derived from two ruby auctions and USD 80 million derived from four emerald auctions. The average number of lots offered at Gemfields’ emerald and ruby auctions to date is 24 and 72 respectively.

Invitation to shareholders Re: proposed changes to Articles of Incorporation

Gemfields Group Limited (“Gemfields”) is pleased to advise that it has completed an external review of its Articles of Incorporation (“Articles”). The review arose as a result of specific suggestions received from a shareholder group, and which Gemfields then expanded to include a general review taking into account AIM and JSE practices, Guernsey law (where Gemfields is registered) and the governance benchmarks set by a peer group of other, including large diversified, mining companies. The intention is to better align Gemfields with appropriate market practice and further improve the corporate governance framework.

Reviewed Interim Results for the Six Months Ending 30 June 2020

Gemfields hereby announces the Company’s financial results for the six months ending 30 June 2020 (“2020 Interim Results”). 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.

Trading Statement

In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, Gemfields is reasonably certain that its net loss after tax will be USD 56.7 million for the six months ending 30 June 2020 compared to a net profit after tax of USD 12.4 million for the six months ending 30 June 2019. In ZAR terms, the net loss after tax is expected to be ZAR 959 million (ZAR 177 million net profit after tax for the comparative period).

Disclosure of beneficial interests in securities

In compliance with paragraph 3.83(b) of the JSE Listings Requirements, shareholders are advised that Gemfields has received formal notification from Rational Expectations (Pty) Ltd (“Rational”) on 5 August 2020, that Rational and related parties acquired a beneficial interest in the ordinary shares of the Company, such that the total beneficial interest in ordinary shares of the Company held by Rational is now 7.05% of the total issued shares of the Company. Following the acquisition, Rational held a total of 82,371,221 ordinary shares in the Company.

Appointment of Joint Broker

The Company is pleased to announce the appointment of Liberum Capital Limited (“Liberum”) as the Company’s Joint Broker with immediate effect. finnCap will continue to act as the Company’s Nominated Adviser and Joint Broker.

Trading, Corporate & COVID-19 Update

The Company hereby provides a trading and corporate update including in respect of the COVID-19 pandemic. Gemfields’ priority remains the health and wellbeing of its employees, host communities and customers while striving to safeguard the viability and value of the Company. In each of its countries of operation, Gemfields continues to monitor closely the guidance and advice of the relevant authorities.
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