Delay in publication of Audited Financial Results

RNS Number : 7562H

Gemfields Group Limited

26 March 2020

 

GEMFIELDS GROUP LIMITED

(Incorporated in Guernsey)

(Guernsey registration Number: 47656)

(South African external company registration number 2009/012636/10)

Share code on JSE:GML / AIM:GEM / BSX:GML.BH

  ISIN: GG00BG0KTL52  LEI: 21380017GAVXTCYS5R31

("Gemfields" or the "Company")

26 March 2020

Delay in the publication of Gemfields' Audited Financial Statements

Gemfields shareholders are advised that there will be a delay in the publication of the Company's audited financial results for the year ended 31 December 2019 ("2019 Results"). The Company has been advised by its auditors BDO LLP ("BDO") that, given the developments and prevailing circumstances surrounding COVID-19, the audit process in relation to the Board's going concern assessment and associated disclosures requires more time in order for a conclusion to be reached. 

It is also noted that announcements were made by the JSE on 25 March 2020 and by the UK's Financial Conduct Authority ("FCA") on 21 March 2020 whereby:

a.  The JSE encouraged issuers to carefully assess the pandemic on their financial reporting and audit processes; and

b.  the FCA requested that all London listed companies observe a moratorium on the publication of financial statements for a minimum of two weeks, as a result of the unprecedented events stemming from the COVID-19 outbreak.

The Company is required by the JSE Listings Requirements to release its 2019 Results by 31 March 2020.

In accordance with paragraph 3.4(b) of the JSE Limited Listings Requirements, Gemfields released its Trading Statement for the year ending 31 December 2019 on 24 March 2020 and the stated numbers remain the Company's expected results. Gemfields therefore remains reasonably certain that its net profit after tax will be USD 39.1 million (in ZAR terms, the net profit after tax is expected to be ZAR 565 million) and earnings per share are expected to be USDc 2.2 (in ZAR terms, the earnings per share are expected to be ZAR 0.32).

Gemfields emphasises that the delay arises from the additional going concern work BDO is required to perform as a result of COVID-19 and not as a result of concerns relating to 2019 Results.

At 29 February 2020, the Gemfields Group had cash balances of approximately USD 73.5 million, a net cash position of approximately USD 43.5 million and undrawn overdraft facilities of USD 30 million.

For more information on the JSE guidance, please visit: www.jse.co.za/content/JSEAnnouncementItems/JSE%20-%20COVID-19%20-%20Financial%20Reporting%20-%20March%202020%20final.pdf  

For more information on the FCA request, please visit:

www.fca.org.uk/news/statements/fca-requests-delay-forthcoming-announcement-preliminary-financial-accounts .

Shareholder and analyst conference call

The Company's scheduled conference call on Friday 27 March 2020 will be re-scheduled as soon as the Company is in a position to do so.

Further information on Gemfields Group Limited can be found at www.gemfieldsgroup.com

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For any press enquiries please contact us on [e-mail] 

Enquiries:

Gemfields	Nominated Adviser and Broker (AIM)
Sean Gilbertson / David Lovett / Mark Lawrie	finnCap
Tel: [phone]	Scott Mathieson / Edward Whiley
	Tel: [phone]
Sponsor (JSE)	IR / Financial PR
Investec Bank Limited	Camarco
	Gordon Poole / Jennifer Renwick / Nick Hennis
	Tel: [phone]

Additional information on Gemfields

Gemfields is a world-leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.

Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the wider group's "mine and market" vision.

Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields' business model that has played an important role in the growth of the global coloured gemstone sector.

 

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