Gemfields Group Limited (GML) investor relations material

Executive summary

• H1 2025 was challenging due to lower premium gemstone output, mining suspensions at Kagem/Cardium, civil unrest in Mozambique, and a new 15% Zambian export duty, all now resolved.

• Revenue for H1 2025 was $64.2m, down 47% year-over-year, with EBITDA at a loss of $4.9m, reflecting lower auction volumes and softer market demand.

• Rights issue and Fabergé divestment raised $30m and $50m, respectively, improving liquidity and focusing on core mining.

• Cost-cutting and streamlining, including a temporary halt to Kagem/Cardium mining, lowered operating costs by up to 30% year-over-year.

• MRM's second processing plant (PP2) is nearing completion, expected to triple ruby processing capacity and drive new revenue in late H2 2025.

Financial highlights

• Group revenue for H1 2025 was $64.2m, down 18–47% year-over-year; Adjem contributed $21m, MRM $39m.

• EBITDA loss of $4.9m; adjusted EPS loss of 1.5¢ per share; net loss after tax was $24.6m.

• Free cash flow loss of $22.1m, mainly due to reduced revenues and investment in the new MRM plant.

• Net debt at June 30 was $45.1m–$61.2m, improved since December due to the rights issue.

• Operating expenses were $69.1m, down 3% year-over-year; capex was $28.2m, mainly for MRM's PP2.

Outlook and guidance

• MRM’s PP2 is expected to be fully operational by October 2025, tripling processing capacity and supporting future growth.

• Three further auctions planned for H2 2025, including ruby and emerald auctions; auction volumes may be impacted by PP2 ramp-up.

• Capital allocation in 2026 will prioritize strengthening the balance sheet over dividends.

• Management remains cautiously optimistic for H2 2025, citing improved auction demand and pricing trends.