Gemfields Group Limited · JSE:GML

Gemfields — Non-Deal Roadshow (September 2018)

48 slides from Gemfields's roadshow presentation, September 2018

  1. Slide 1: Investor Update September 2018

    INVESTOR UPDATE SEPTEMBER 2018 A story in every gemstone

  2. Slide 2: Gemfields Group Limited

    b GEMFIELDS GROUP LIMITED

  3. Slide 3: Important Notice and Disclaimer

    IMPORTANT NOTICE AND DISCLAIMER This document, which has been compiled by Gemfields Group Limited (the “Company”), comprises the written materials/slides for a presentation concerning the Company, including its business, results of operations and prospects. This document does not constitute or form

  4. Slide 4: GEMFIELDS GROUP LIMITED

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  5. Slide 5: Board Members

    GEMFIELDS GROUP LIMITED BOARD MEMBERS Non-Executive Chairman Executive Directors Non-Executive Director INVESTOR UPDATE / SEPTEMBER 2018 Brian Gilbertson Sean Gilbertson David Lovett Dr Christo Wiese Chairman Chief Executive Officer Chief Financial Officer Independent Non-Executive Directors 3 Audit

  6. Slide 6: The Transition from Pallinghurst Resources Limited to the Current Gemfields Group

    THE TRANSITION FROM PALLINGHURST RESOURCES LIMITED TO THE CURRENT GEMFIELDS GROUP Investec Pallinghurst Ophorst Van Marwijk Kooy Dr Christo Wiese NGPMR (Cayman) L.P.1 Gemfields Group Limited3 Oasis4 Other (Cayman) L.P.2 Vermogensbeheer N.V. No. of shares: 160,388,407 No. of shares: 138,469,735 No. o

  7. Slide 7: The Transition from the Current Gemfields Group to the Future Gemfields Group

    THE TRANSITION FROM THE CURRENT GEMFIELDS GROUP TO THE FUTURE GEMFIELDS GROUP Investec Pallinghurst Ophorst Van Marwijk Kooy Dr Christo Wiese NGPMR (Cayman) L.P.1 Gemfields Group Limited3 Oasis4 Other (Cayman) L.P.2 Vermogensbeheer N.V. No. of shares: 160,388,407 No. of shares: 138,469,735 No. of sh

  8. Slide 8: GEMFIELDS GROUP LIMITED

    6 GEMFIELDS GROUP LIMITED

  9. Slide 9: Gemfields Ltd: world's leading miner of responsibly sourced coloured gemstones

    GEMFIELDS LTD The world’s leading miner of responsibly sourced precious coloured gemstones. Africa-focussed, with three principal activities: mining, grading and marketing. 100% owned by Gemfields Group Ltd (JSE:GML, BSX:GML.BH) INVESTOR UPDATE / SEPTEMBER 2018 Montepuez Kagem Mining Ltd Web Gemston

  10. Slide 10: Kagem responsible mining

    Kagem prides itself on its ability to conduct mining in a responsible, transparent and safe manner with minimal impact on the natural environment. GEMFIELDS GROUP LIMITED 8

  11. Slide 11: Kagem Emerald Mine

    KAGEM EMERALD MINE • The world’s single largest producing emerald mine. • Located in the Copperbelt Province, Zambia. INVESTOR UPDATE / SEPTEMBER 2018 • It is 75% owned by Gemfields and 25% owned by the Government of the Republic of Zambia. • Producer of emeralds and beryl. • Produces around 25% of

  12. Slide 12: MRM CSR activities

    GEMFIELDS GROUP LIMITED 10 MRM’s CSR activities are aligned with the policies of the Government of the Republic of Mozambique and supplement the Government’s efforts in improving the quality of life of the community.

  13. Slide 13: Montepuez Ruby Mine

    MONTEPUEZ RUBY MINE • One of the most significant recently discovered ruby deposits in the world. • Located in the Montepuez district, Cabo Delgado province, Mozambique. INVESTOR UPDATE / SEPTEMBER 2018 • It is 75% owned by Gemfields and 25% owned by local Mozambican minority partner, Mwriti Limitad

  14. Slide 14: Fabergé

    GEMFIELDS GROUP LIMITED 12 Fabergé aims to establish itself as the preferred jeweller for emeralds, rubies and sapphires.

  15. Slide 15: Fabergé Limited

    FABERGÉ LIMITED • Fabergé is one of the world’s most recognised luxury brand names. • Fabergé boosts the international presence and perception of coloured gemstones through its consumer- INVESTOR UPDATE / SEPTEMBER 2018 focussed marketing campaigns. • Fabergé directly operates two mono-brand boutiqu

  16. Slide 16: Share price vs Gemfields Ltd, rebased

    GEMFIELDS GROUP LIMITED 14 Rebased to 100 at 1 June 2014 0 20 40 60 80 100 120 140 160 2014/06/30 2014/07/31 2014/08/29 2014/09/30 2014/10/31 2014/11/28 2014/12/31 2015/01/30 2015/02/27 2015/03/31 2015/04/30 2015/05/29 2015/06/30 2015/07/31 2015/08/31 2015/09/30 2015/10/30 2015/11/30 REBASED TO 100

  17. Slide 17: Share price vs Gemfields Ltd, USD cents

    USD cents 0 10 20 30 40 50 60 70 80 90 100 2014/06/30 2014/07/31 2014/08/29 2014/09/30 2014/10/31 2014/11/28 2014/12/31 2015/01/30 2015/02/27 2015/03/31 2015/04/30 2015/05/29 2015/06/30 2015/07/31 2015/08/31 2015/09/30 2015/10/30 (CONVERTED TO USD CENTS AT 18 SEPTEMBER 2018) 2015/11/30 2015/12/31 20

  18. Slide 18: GEMFIELDS GROUP LIMITED

    GEMFIELDS GROUP LIMITED 16

  19. Slide 19: What is wrong with the Gemfields share price?

    WHAT IS WRONG WITH THE GEMFIELDS SHARE PRICE? NEGATIVE NEWS OVER THE PAST 6 MONTHS • Leigh Day – legal case brought against Gemfields Ltd. INVESTOR UPDATE / SEPTEMBER 2018 • Ethiopia – the over-running of the bulk sampling operations by a mob (estimated to be between 300–500 persons). • Zambian Reve

  20. Slide 20: Market cap of Gemfields compared to its peer group

    MARKET CAP OF GEMFIELDS COMPARED TO ITS PEER GROUP OF COMPANIES GEMFIELDS' PEER GROUP: REVENUE VS NET PROFIT VS MARKET CAPITILISATION (HALF YEAR FIGURES) GEMFIELDS GROUP LIMITED 300 250 USD 403 m USD 438 m 200 Petra Diamonds Revenue USD m USD 217 m 150 Blue Nile Gem Diamonds USD 202 m Gemfields Grou

  21. Slide 21: Group yearly revenue 2008–2018

    GEMFIELDS GROUP LIMITED GEMFIELDS' GROUP YEARLY REVENUE 2008–2018 INVESTOR UPDATE / SEPTEMBER 2018 250 000 200 000 Revenue USD ’000 150 000 Other Corporate 100 000 Fabergé Mozambique 19 Zambia 50 000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year All revenues are for the period 1 July

  22. Slide 22: Consolidated income statement

    CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2018 Investment Entity up to 31 July 2017 Operating Company Operating Company from 1 August 2017 Actual 6 months to 30 June 20181 Actual 12 months to 31 December 2017 2 USD '000 USD '000 Gross Revenue 102.1 81.7 Change in inventory and p

  23. Slide 23: Consolidated cashflow statement

    CONSOLIDATED CASHFLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2018 Investment Entity up to 31 July 2017 Operating Company Operating Company from 1 August 2017 Actual 6 months to 30 June 20181 Actual 12 months to 31 December 2017 2 USD '000 USD '000 INVESTOR UPDATE / SEPTEMBER 2018 Revenue 102.1 8

  24. Slide 24: GEMFIELDS GROUP LIMITED

    GEMFIELDS GROUP LIMITED 22

  25. Slide 25: Free cashflow performance

    GEMFIELDS GROUP LIMITED FREE CASHFLOW PERFORMANCE INVESTOR UPDATE / SEPTEMBER 2018 50 40 30 26 23 18 20 20 14 9 USD (m) 10 4 4 4 1 0 –2 –5 –10 –14 –20 –21 –30 23 –29 –34 –40 –45 –50 JUN 2011 DEC 2011 JUN 2012 DEC 2012 JUN 2013 DEC 2013 JUN 2014 DEC 2014 JUN 2015 DEC 2015 JUN 2016 DEC 2016 JUN 2017 D

  26. Slide 26: Gross debt analysis

    GEMFIELDS GROUP LIMITED 24 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 JUN 2012 JUL 2012 AUG 2012 SEP 2012 OCT 2012 NOV 2012 DEC 2012 JAN 2013 FEB 2013 MAR 2013 APR 2013 MAY 2013 JUN 2013 JUL 2013 AUG 2013 SEP 2013 OCT 2013 NOV 2013 DEC 2013 JAN 2014 FEB 2014 MAR 2014 APR 2014 G

  27. Slide 27: Net cash/(debt) profile

    GEMFIELDS GROUP LIMITED GEMFIELDS GROUP NET CASH/(DEBT) PROFILE INVESTOR UPDATE / SEPTEMBER 2018 85 000 65 000 45 000 USD (m) 25 000 5 000 25 –15 000 –35 000 30 JUN 2010 30 JUN 2011 30 JUN 2012 30 JUN 2013 30 JUN 2014 30 JUN 2015 30 JUN 2016 30 JUN 2017 30 JUN 2018 Cash Debt Net Cash/(debt)

  28. Slide 28: GEMFIELDS GROUP LIMITED

    GEMFIELDS GROUP LIMITED 26

  29. Slide 29: Annual auction revenue

    GEMFIELDS GROUP LIMITED GEMFIELDS ANNUAL AUCTION REVENUE INVESTOR UPDATE / SEPTEMBER 2018 200 150 100 50 27 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 JAN–31 JULY Kagem Revenue MRM Revenue

  30. Slide 30: Kagem rough emerald and beryl auctions actual sales prices

    GEMFIELDS GROUP LIMITED 28 0 1 2 3 4 5 6 JUL 2009 NOV 2009 MAR 2010 JUL 2010 DEC 2010 MAR 2011 JUL 2011 NOV 2011 MAR 2012 JUN 2012 NOV 2012 APR 2013 JUL 2013 NOV 2013 Low Grade (left axis) FEB 2014 (USD/CARAT) CALCULATED AS: USD RECEIVED/TOTAL WEIGHT SOLD GEMFIELDS GROUP LIMITED AUG 2014 KAGEM ROUGH

  31. Slide 31: Kagem rolling 12 month total operating costs

    0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 JUN 2009 OCT 2009 FEB 2010 JUN 2010 OCT 2010 FEB 2011 JUN 2011 OCT 2011 FEB 2012 JUN 2012 OCT 2012 FEB 2013 JUN 2013 GEMFIELDS GROUP LIMITED OCT 2013 FEB 2014 JUN 2014 KAGEM EMERALD MINE PERFORMANCE OCT 2014 FEB 2015 JUN 2015 OCT

  32. Slide 32: Kagem 12 month rolling premium emerald production

    GEMFIELDS GROUP LIMITED 30 0 200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000 DEC 2005 MAY 2006 OCT 2006 MAR 2007 AUG 2007 JAN 2008 JUN 2008 NOV 2008 APR 2009 SEP 2009 FEB 2010 JUL 2010 DEC 2010 MAY 2011 grading system Final changes to OCT 2011 GEMFIELDS GROUP LIMITED KAGEM 12 MONTH ROL

  33. Slide 33: Kagem 12 month rolling gemstone production

    0 5 000 000 10 000 000 15 000 000 20 000 000 25 000 000 30 000 000 35 000 000 40 000 000 JAN 2006 MAY 2006 SEP 2006 JAN 2007 MAY 2007 SEP 2007 JAN 2008 MAY 2008 SEP 2008 JAN 2009 MAY 2009 SEP 2009 JAN 2010 MAY 2010 SEP 2010 JAN 2011 Beryl MAY 2011 SEP 2011 JAN 2012 GEMFIELDS GROUP LIMITED Emerald MA

  34. Slide 34: Kagem cumulative premium emerald production

    GEMFIELDS GROUP LIMITED KAGEM EMERALD MINE PERFORMANCE KAGEM CUMULATIVE PREMIUM EMERALD (PE) PRODUCTION (IN CARATS) BY CALENDAR YEAR 180 000 GEMFIELDS GROUP LIMITED 160 000 140 000 120 000 100 000 80 000 32 60 000 40 000 20 000 0 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NO

  35. Slide 35: Kagem cumulative emerald production

    GEMFIELDS GROUP LIMITED KAGEM EMERALD MINE PERFORMANCE KAGEM CUMULATIVE EMERALD (E) PRODUCTION (IN CARATS) BY CALENDAR YEAR INVESTOR UPDATE / SEPTEMBER 2018 10 000 000 900 000 800 000 700 000 600 000 500 000 400 000 33 300 000 200 000 100 000 0 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTE

  36. Slide 36: GEMFIELDS GROUP LIMITED

    GEMFIELDS GROUP LIMITED 34

  37. Slide 37: Montepuez rough ruby total auction sales

    GEMFIELDS GROUP LIMITED MONTEPUEZ RUBY MINE PERFORMANCE MONTEPUEZ ROUGH RUBY TOTAL AUCTION SALES (USD MILLION) INVESTOR UPDATE / SEPTEMBER 2018 80 70 60 50 40 30 20 35 10 0 JAN 2014 DEC 2014 APR 2015 JUN 2015 DEC 2015 JUN 2016 DEC 2016 JUN 2017 NOV 2017 JUN 2018 Mixed Quality Higher Quality Commerci

  38. Slide 38: Montepuez rolling 12 month total operating costs

    GEMFIELDS GROUP LIMITED 36 0 5 000 10 000 15 000 20 000 25 000 30 000 JUN 2012 SEP 2012 DEC 2012 MAR 2013 JUN 2013 SEP 2013 DEC 2013 MAR 2014 JUN 2014 SEP 2014 DEC 2014 MAR 20155 JUN 2015 GEMFIELDS GROUP LIMITED SEP 2015 DEC 2015 MAR 2016 MONTEPUEZ RUBY MINE PERFORMANCE JUN 2016 SEP 2016 DEC 2016 MA

  39. Slide 39: Montepuez rolling month overall gemstone production

    GEMFIELDS GROUP LIMITED MONTEPUEZ RUBY MINE PERFORMANCE MONTEPUEZ ROLLING 12 MONTH OVERALL GEMSTONE PRODUCTION (CARATS) (PRODUCTION EXCLUDES SAPPHIRE AND LOW SAPPHIRE PRODUCTION) INVESTOR UPDATE / SEPTEMBER 2018 9 000 000 8 000 000 7 000 000 6 000 000 5 000 000 4 000 000 3 000 000 2 000 000 37 1 000

  40. Slide 40: GEMFIELDS GROUP LIMITED

    GEMFIELDS GROUP LIMITED 38

  41. Slide 41: Montepuez rolling 12 month premium ruby production

    0 20 000 40 000 60 000 80 000 100 000 120 000 140 000 OCT 2013 DEC 2013 FEB 2014 APR 2014 JUN 2014 AUG 2014 OCT 2014 DEC 2014 FEB 2015 APR 2015 JUN 2015 AUG 2015 OCT 2015 DEC 2015 GEMFIELDS GROUP LIMITED FEB 2016 MONTEPUEZ ROLLING 12 MONTH PREMIUM RUBY PRODUCTION (CARATS) APR 2016 JUN 2016 AUG 2016

  42. Slide 42: MRM cumulative premium ruby production

    GEMFIELDS GROUP LIMITED MONTEPUEZ RUBY MINE PERFORMANCE MRM CUMULATIVE PREMIUM RUBY (PR) PRODUCTION (CARATS) BY CALENDAR YEAR 140 000 GEMFIELDS GROUP LIMITED 120 000 100 000 80 000 60 000 40 000 40 20 000 0 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Actual

  43. Slide 43: MRM cumulative ruby production

    GEMFIELDS GROUP LIMITED MONTEPUEZ RUBY MINE PERFORMANCE MRM CUMULATIVE RUBY (R) PRODUCTION (CARATS) BY CALENDAR YEAR INVESTOR UPDATE / SEPTEMBER 2018 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 41 100 000 0 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEM

  44. Slide 44: GEMFIELDS GROUP LIMITED

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  45. Slide 45: Fabergé performance: sales orders and operating costs

    0 2 000 000 4 000 000 6 000 000 8 000 000 10 000 000 12 000 000 14 000 000 16 000 000 SEP 2010 FEB 2011 JUL 2011 DEC 2011 MAY 2012 OCT 2012 MAR 2013 AUG 2013 SEP 2013 JAN 2014 JUN 2014 NOV 2014 APR 2015 SEP 2015 12 MONTH ROLLING SALES ORDERS AGREED (USD, POST ANY DISCOUNTS, ALL CHANNELS) FEB 2016 JU

  46. Slide 46: Fabergé rolling 12 month funding required

    GEMFIELDS GROUP LIMITED 44 0 2 500 000 5 000 000 7 500 000 10 000 000 12 500 000 15 000 000 17 500 000 20 000 000 22 500 000 25 500 000 OCT 2014 NOV 2014 DEC 2014 2014 DEC 14 100 000 JAN 2015 FEB 2015 MAR 2015 APR 2015 JUN 2015 JUL 2015 AUG 2015 SEP 2015 2015 OCT 2015 NOV 2015 DEC FABERGÉ PERFORMANC

  47. Slide 47: Slide 47

  48. Slide 48: www.gemfieldsgroup.com

    www.gemfieldsgroup.com

Gemfields Group — Non-Deal Roadshow (September 2018) on 6ix