Gemfields Group Limited

Good morning and welcome to Genfield's 2026 Interim Results Shareholder and Investor Webcast. David Lovett, Interim CEO and CFO, and Becky Tate, Head of Finance, will present Genfield's financial results. At the end of the presentation, we will go into Q&A. If you'd like to ask a question, please write it via the webcast page by clicking the Ask a Question button. Before we start, please take note of the important information in our disclaimer on slide 2. And with that, I'm going to pass you on to David.

Thank you, Heinrich, and good morning, everybody. Thank you for joining us for Genfield's interim results for the six months ended 30th of June, 2026. I'm David Lovett, Genfield's interim CEO and CFO, and I'm joined by Becky Tate, our head of finance, who has been with Genfield for five years and brings a strong understanding of our financial reporting and Zambian operations. We'll take you through the key developments from the first half of the year and then open the call for questions. It's fair to say that the first half was difficult and the reported loss is clearly disappointing, principally due to the challenges at MRM. Premium review recoveries remained below expectations and the operating environment remained testing. Those factors are reflected in the MRM impairments, which Becky will cover shortly. There are, however... reasons for measured optimism. PP2 is now largely operational and has shown that it can run at, and at times above, the 400 tonnes per hour target. Ruby recoveries have also improved recently. Our CADGEM production was strong, supported by good premium emerald recoveries and a positive higher quality emerald auction. Looking forward, our priorities are clear. We need to stabilize operations at MRM, sustain CADGEM's strong performance, reserve cash, and rebuild balance sheet resilience. That means staying focused on safe operations, reliable production, tight cost control, and disciplined capital allocation. With that, I'll hand you over to Becky to take you through the first half numbers.

Thanks, David, and good morning, everyone. So starting on slide five, As David has just set out, the first half of 2026 has continued to be challenging for the Group. However, these challenges are not fully reflected in the headline figures shown on this slide, primarily due to the deferral of the December 2025 Ruby auction to February 2026, which meant MRM had two auctions in the first half where traditionally it has just had one. As shown on the slide, The group generated $106 million of revenue in the period, of which 50%, or $53 million, was contributed by the February 2026 auction held by MRM. MRM also conducted its first Trade Select auction in June 2026, which provided an additional $23 million to MRM's total revenue for the first half. Its newly introduced Trade Select auctions are aimed at offering a broader mix of Ruby qualities as well as the newly introduced Sapphire categories to the market. Hadgen contributed just under $27 million to revenues in the first half from one higher quality auction held in May. Overall, auction results for the first half of 2026 were promising and showed the continued strong underlying demand for high quality coloured gemstones. Then on the right of the slide, either dark, EBITDA showed positive movements in the first half with $40.7 million achieved in the period. This good performance reflects the strong auction results in the year to date. Moving on to slide 6 Adjusted earnings per share saw a gain of 0.6 cents per share when taking into account depreciation, interest costs and taxes but excluding the non-cash impairment charge against MRM which we will come back to later. Turning to cash the first half saw a $17.4 million free cash inflow, again, primarily due to the auction timings in the first half of the year. Moving to net debt on slide 7. The graph on the slide shows the evolution of Genfield's net cash or debt position going back to 2010. The grey line depicts net cash or debt, with the yellow line depicting net cash or debt with the auction receivables balance included. What can clearly be seen here is the cyclical nature of our business. As shown on the far left, we remain in a net debt position at the 30th of June, closing the period with net debt of $44 million, which is more or less in line with where we were at the end of 2025. Taking auction receivables into consideration, improves the net debt to $10.6 million, our lowest position since June 2024. Although we still have some way to go to get back to a net cash position, we have made some encouraging progress during the first half of 2026. Looking forward to December, we've already secured revenues of almost $30 million from the September Commercial Quality Emerald Auction, with a high-quality Emerald Auction and two Ruby Auctions still to come before the end of the year. We remain optimistic, therefore, that this positive trajectory will continue as we progress towards year-end. Next to slide 8, which shows OPEX across the key segments in the period. For Cajun, on the top left of the slide, mining production costs were up compared to the second half of 2025, reflecting the inflationary pressures of diesel prices in the period in line with global trends. and the dual impact of the implementation of the Currency Directives introduced in Zambia combined with an appreciating quater which has put upward pressure on Kajum's cost base. As a reminder for Kajum, we had paused mining in the first half of 2025, therefore the OPEX presented for that comparative period is artificially low. Cost increases at MRM also reflects the increase in diesel prices alongside the increase in the period in mining and processing activity as PP2, MRM's second processing plant, has ramped up towards its full operating capacity. We have made good progress on stabilising PP2 over the last few months, which David will be expanding on in his operational review shortly. The relevant project costs in the chart in the top right have remained low as we continue winding down activities at the site, whilst corporate costs remain in line in the second half of 2025. Cost control will remain a key focus as we move through the second half of 2026. Moving to a quick look at cash flow expenditure on slide 9. These graphs show capex at CAGRM on the left and at MRM on the right. CAGRM has seen very little capex in 2026 to date. However, this was largely due to the implementation of Statutory Instrument 68 in Zambia from the start of the year, which has meant expenditures delayed whilst the team ensured vendors were compliant with the new legislation. A catch-up is therefore expected across the second half of the year, and we expect CADM to end the year in line with 2025's total spend. MRM's significant investment in its new plant can clearly be seen in the graph on the right. However, capital spend is now tapering as the project nears completion. The final payment of circa $4 million to ConsulNet is expected to be made by the end of the year, with all non-critical spend paused as we navigate the current operational challenges. Which brings me finally onto MRM and the non-cut impairment of $125.2 million made in the period on slide 10. As we have previously announced to the market, MRM has continued to experience a number of operational challenges during 2026, which include one of the wettest rainy seasons recorded since we began operations, which limited access to certain production areas and forced mining to be concentrated in lower-grade areas, a commissioning and ramp-up period for PP2 proving more challenging and prolonged than initially anticipated, and the continued low recoveries of premium rubies, which have been significantly below operational targets. The combination of these factors has meant that, overall, premium ruby production for the period was a shortfall of 13% against the first half of 2025, despite a 133% increase in the ore produced over the same period. The decline in premium grade that has been observed causes us to reassess the key judgments used in MRM's life of mine model, and As a result, we have adopted more conservative grade assumptions that place greater weight on recent operational results, future mine scheduling plans and bulk sampling data. This downward revision in forecast grades in the Life of Mine model, particularly in premium ruby recoveries, was the main contributing factor to the $125.2 million impairment recorded as at 30 June 2026. Following the impairment recorded, the carrying value of MRM was written down to $80.3 million. In addition to the current period impairment, we have also restated the impairment recorded in the 2025 annual report by $30 million, increasing the impairment charge that was recognised as at 31 December 2025 from $35 million to $65 million. The restatement arose following the identification of some inconsistencies while reviewing the 30 June 2026 Life of Mind model that were also found to exist in the 31 December 2025 model upon review. All errors identified have been corrected with the Life of Mind model that supports the 30 June impairment review. I will now hand you back across to David, who will take you through the operational review and provide more detail on recent progress at MRN.