News Bureau

Gemfields maintains production!

According to the Final audited results for the year ended 30 June 2016 Gemfields revenue registers of US$193.1 million over the 2015 of US$171.4 million; EBITDA(a) of US$69.4 million over 2015 of US$64.4 million and Profit after tax bag of US$23.5 million over the previous 2015 for US$12.3 million.

75% owned Kagem’s Emeralds production of rough emerald and beryl maintained at 30.0 million carats as it was in 2015 too was of 30.1 million carat). Average grade, inclusive of ore from bulk sampling pits, of 241 carats per tonne against 2015 occurrence was of 242 carats per tonne.

Revenue of US$101.2 million with record US$70.68 per carat price achieved at higher quality auction & this led with continued focus on safety management, awarded the Green Award for exemplary environmental management.

75% owned Montepuez mine for Rubies continued production growth of rough ruby and corundum of 10.3 million carats over the 2015 production of 8.4 million carats. Higher grade achieved of 35 carats per tonne while in 2015 it was of 26 carats per tonne & revenue of US$73.1 million fetched, with an average price of US$45.50 per carat.

Comparatively 68% increase in higher quality rough rubies recovered against marginally lower unit operating costs (b) at US$2.54 per carat compared with US$2.57 per carat.

100% owned Fabergé continued recognition of quality and improving brand recognition & won the 'Ladies Hi-Mechanical' category at the prestigious Grand Prix d'Horlogerie de Genève ("GPHG") awards in October 2015, the Swiss watchmaking industry's highest honour, for its 'Lady Compliquée Peacock' timepiece.

The 'Lady Peacock Emerald' variant of the timepiece also won the 'Ladies Complication' award at Watchfair Luxembourg in June, 2016; and the highly acclaimed FabergéVisionnaire DTZ men's watch qualified as an entrant for the GPHG 2016 awards.

Increased revenue by 33% as Fabergé continued to expand its global presence and increased the number of agreements with multi-brand retail partners; and improved level of consumer awareness and demand, the number of units sold and delivered increasing by 81%.

Status of New projects of Emeralds in Ethiopia: A diamond drilling crew was mobilised at Dogogo South Block, Ethiopia, in June 2016 and drilling commenced in July 2016;Sapphires in Sri Lanka: Trading centres established in Colombo and Ratnapura; and Emeralds in Colombia: Gemfields expanded the size of its operating team and in-country footprint with further groundwork being undertaken.

Continued high-profile marketing projects including new partnerships with Bergdorf Goodman and High Jewellery designer collaborations with Chopard, Georg Jensen and VanLeles carried on and launched new integrated global ruby marketing campaign during the year by Gemfields. The campaign includes a triptych of films featuring up-and-coming global female talent from around the world which has been received to wide acclaim

Ian Harebottle, CEO of Gemfields, commented:"This financial year has seen Gemfields consolidate its position as an industry leader. The Company has achieved record operational progress which has translated into strong financial results for the Group, generating revenue of US$193.1 million, EBITDA of US$69.4 million and profit after tax of US$23.5 million.

In addition, US$64.1 million was generated in operating cash flow, an increase of 97% on the previous due to a rise in operating profit. Over the past five years, Gemfields revenue has increased 380% and total revenue generated since the Company's first auction in 2008 has reached US$717.6 million, an impressive achievement given the challenges faced by the mining and luxury goods industries.

Gemfields strategy is to grow production over time from two of its world class deposits, the Kagem emerald mine in Zambia and the Montepuez ruby operation in Mozambique, increasing consumer demand and achieving higher prices for its rough gemstones year on year. Operationally Gemfields succeeded in its ambition of producing 30 million carats of rough emerald and beryl from Kagem, as guided, and 10.3 million carats of rough ruby and corundum from Montepuez, exceeding guidance. Global imports of emeralds, rubies and sapphires also reached US$5.9 billion in 2015, up from US$5.2 billion in 2014, demonstrating a 13% increase in consumer demand on the previous year.

The Company continues to see opportunities in new and existing markets for further price escalation. For the coming financial year Gemfields is targeting four emerald and beryl, two high and two commercial quality, auctions and two mixed quality ruby and corundum auctions. In addition, to meet the rising demand for coloured gemstones, the Company secured financing in the year to realise its expansion programme which will see higher production at both the Kagem and Montepuez operations over the next three years

Lastly I would like to thank the entire Gemfields team who continue to work tirelessly in the Company's mission to be the world's foremost gemstone supplier, actively leading the growth and development of the industry and promoting trust and transparency throughout the supply chain."

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