Gemfields Group (GML) Trading update summary

Operational performance and challenges

• Lower-than-expected premium ruby recoveries at MRM significantly impacted financial performance, prompting management to focus on improving grade performance, mine planning, and operational reliability.

• Early signs of improvement in ruby recoveries have emerged following operational changes, while Kagem delivered solid emerald recoveries despite elevated costs.

• PP2 achieved and occasionally exceeded design throughput levels, though final commissioning and optimisation are ongoing.

Financial results and impairments

• MRM and Kagem generated revenues of USD 76.1 million and USD 26.7 million, respectively, with total auction revenues at USD 102.8 million, boosted by the deferral of a ruby auction.

• Net loss after tax is expected to be USD 73.5 million, mainly due to a non-cash impairment charge of USD 125.2 million at MRM and a restatement of the FY2025 impairment from USD 35.0 million to USD 65.0 million.

• Loss per share is expected at USDc 4.3 (ZARc 70.55), up from USDc 1.7 (ZARc 30.12) in H1 2025.

• Headline earnings per share are expected to improve to USDc 0.6 (ZARc 9.84) from a headline loss per share of USDc 1.5 (ZARc 26.60) in H1 2025.

Outlook and upcoming events

• Management aims to sustain recent operational improvements at MRM and maintain financial discipline for the remainder of 2026.

• Interim financial results will be released on 30 September 2026, with a webcast and Q&A session scheduled for the same day.

• Weighted average shares in issue for the period were 1,724,230,526.