News

Mar 25, 2020

Gemfields Provides Trading Update for 2019; Says Schedule for Upcoming Auctions Uncertain

Gemfields has announced that it is “reasonably certain” thatits net profit after tax will be US$ 39.1 million in 2019 compared to a net loss after taxof US$ 60.4 million in the previous year. However, the company said that due to the COVID-19 pandemic and current travel restrictions in different parts of the world, it cannot be certain when the next emerald and ruby auctions scheduled for the coming month will take place.

For 2019, Gemfields reported that its two key operating assets, MRM and Kagem, generated revenues of US$ 121.5 million (US$ 127.1 millionfor the comparative period) and US$ 79.0 million (US$ 60.3 million for the comparative period) respectively duringthe year to 31 December 2019 and Fabergé recorded revenues of US$ 10.5 million (US$ 13.4 million for thecomparative period).

Further, the company noted that due to the recent suspension of the 15% export duty payable in Zambia throughout 2019, animpairment reversal of US$ 21.6 million has been recognised against our Kagem asset.

The Company’s audited financial results for the year ended 31 December 2019 are expected tobe released on or around 27 March 2020.

In addition, Gemfields said that it cannot at this time provide anycertainty or guidance in relation to revenue generation and overall financial performance for the remainder of theyear to 31 December 2020 due to the current global travel restrictions in the wake of the COVID-19 pandemic.

It announced that he Board and management of the Company will continue to assess all options in relationto selling gemstones in the current climate and will provide further updates in due course.