Gemfields Group Limited

Good morning and welcome to Gemfield's 2025 Half Your Results Shareholder and Investor Webcast. Sean Gilbertson, CEO, and David Lovett, CFO, will present Gemfield's financial results to the end of June 2025. At the end of the presentation, we will go into Q&A. If you'd like to ask a question, please write it in via this webcast page by clicking the Ask a Question button. Before we start, please take a note of the important information in our disclaimer on slide two, with a full disclaimer in the appendix. And with that, I'll now pass you on to Sean to start on slide three.

Good morning and welcome. Thank you very much for joining us this morning after what has been a seriously challenging first half for Gemfields. MRM experienced lower premium ruby outputs, while Karjam suspended mining altogether at the end of 2024, with only limited operations resuming again in May of this year. The beginning of the year was also marred by civil unrest in the wake of Mozambique's disputed general election, and of course the surprise implementation of the 15% export duty on emeralds in Zambia. Both of those issues are now thankfully resolved. These factors, combined with Chinese luxury consumption effectively being offline, contributed to cash flow pressures and certainly tested both our team and our business. With thanks to the strong support from our shareholders for our June rights issue, Followed after the period end by the sale of Fabergé for a headline 50 million, we have a considerably improved balance sheet. Significantly, our new processing plant in Mozambique produced its first rubies earlier this month and is expected to be fully operational next month in October. We also reported earlier this month the remarkably strong results from Cardium's auction of higher quality emeralds, which was a pleasure to see. And as a result, we are now on a sturdier and more optimistic footing for the year ahead. Moving on to slide four, it's important to note that with the suspension of the Nairoto Gold Project and the divestment of Fabergé, we are now better able to focus on our longstanding core strategy of being an Africa-focused miner and marketer of emeralds, rubies, and hopefully, at an appropriate point in the future, sapphires. At this point, I'll hand you over to David for an update on the financials.

Thank you, Sean, and good morning, everybody. Starting on slide six, we will work through our six key financial KPIs across the past few years. Starting on the left-hand side, you can clearly see the challenges, as Sean has mentioned, that we've seen in the first half of the year and the impact that has had on the revenues. The group generated $64 million of revenue in the period, which is materially down against H1 in 2024 and H2 in 2024. AGM contributed $21 million of the $64 million, with MRM bringing in $39 million. The rest is down to direct sales. Please note that Fabergé revenues, which were $6 million in this period, are not included in here. The Fabergé results were moved to discontinued operations in advance of the sale. Operating expenses in the middle of this slide are down slightly at $69 million. That is primarily based on CADGEM's pause in mining between January and May in this period. If we combine the revenues and the operating expenses, we see an EBITDA loss of $4.9 million in the period. We can move to slide seven, please. Here we have some more of our financial KPIs, starting on the left-hand side with adjusted earnings per share, where we saw a loss of 1.5 cents per share when taking into account depreciation, interest costs and taxes. In the middle, we have free cash flow, where we saw a loss of $22 million in the period. This is largely based not only on reduced revenues, but also on the continued investment into PP2, the new plant at MRM. We are now coming to the end of that project, and we are past peak capex. We will come back to peak capex later in the presentation. Finally, on the slide, We have Genfield's net debt position at 30 June, which was $45 million. Again, we will come back to this later in the presentation. We'll now have a look at expenditure in more detail, starting with operating expenses on slide 8. The OPEX savings seen in H1 are largely due to savings at Kajem, as we paused operations between January and May. Development projects have also largely been paused, with corporate costs seeing a small increase due to fees in relation to the capital raise. OPEX remains a significant focus for management. But with CAGEM resuming mining operations, we should expect an increase in OPEX at CAGEM and at the group level in H2. We'll now have a look at CAPEX with particular focus on the new plant at MRM. Moving on to slide 9, you have CAGEM on the left-hand side and MRM on the right. CAGEM has seen very little CAPEX in 2025. based not only on financial constraints, but also the pause in mining. Whilst we don't expect CAGEM to return to the level seen in 2023, we would expect sustaining capex to increase against the current levels moving forward. MRM on the right-hand side has seen significant investment in the new plant, And that can clearly be seen in the graph. The orange bars are the expansionary capex. We are, as we mentioned, past peak capex now. There is approximately 10% due in the second half of this year moving into next year on the contract with consumer. And we'll have a look at the progress on the next slide and then later in the presentation. If we start with the financials of the plant, which is the bottom of this slide, as I mentioned, there is approximately 10% or $7 million left to pay. The final payment may run into 2026 based on progress over the next six months. In terms of operational updates, we are pleased to say that rubies have been produced and all key components of the plant are now operational. There are, however, ongoing delays in final completion, particularly starter integration, but we expect a fully operational plant by the end of October 2025. As we have mentioned previously, there is a significant stockpile of ore to be processed and ready to go. So once the plant is fully operational, we expect to be able to feed it and we expect to see significant increases in the quantity of rubies produced. We can now have another look at the net debt position over the history of Gemfields on the next slide. As discussed earlier, we are currently sitting on a net debt position of $45 million. This has improved since December, thanks largely to the rights issue, and will continue to improve with the proceeds from the sale of Fabergé and the recent Emerald auction, but we have a way to go to get back to a solid net cash position. The cyclical nature of the business can clearly be seen with the yellow dotted line here, which shows your net debt or net cash with auction receivables. But it should be noted that Genfield has only recently returned any funds to shareholders, which totaled $90 million between May 22 and June 2024. Finally, for me, we have a slide on the rights issue, which completed in this period. The $30 million rights issue was completed in June, with 82% of our shareholders taking up their rights. We would like to take this opportunity to thank shareholders for their understanding and support throughout this challenging period. I will now hand you back to Sean to run through the operational review for the first half.