Half Year 2024 Gemfields Group Ltd Earnings Call Transcript
Key Points
- Gemfields Group Ltd (STU:5PH) generated $128 million in revenue for the first half of 2024, showing resilience despite market challenges.
- The Kagem emerald mine in Zambia and Montepuez ruby mine in Mozambique reported no lost time injuries (LTIs) in 2024, highlighting strong safety performance.
- The processing plant upgrade at Kagem has increased capacity by 50%, leading to a significant boost in premium emerald production in August and September.
- The second processing plant at Montepuez Ruby Mining is on schedule and on budget, expected to triple ore processing capacity by the first half of 2025.
- Fabergé, a subsidiary of Gemfields, has not required any funding from the group since late 2022 and continues to generate significant marketing leverage and press coverage for Gemfields' gemstones.
- Production of premium gemstones at both Kagem and Montepuez was below expectations, impacting overall performance.
- The commercial-quality emerald auction in September saw weaker-than-expected results, with only 61% of lots sold.
- Gemfields Group Ltd (STU:5PH) is currently in a net debt position of $44.4 million, with expectations that net debt could exceed $100 million during the next year.
- Operating expenses, particularly fuel and labor costs, have increased, adding pressure on margins.
- The company has written down its 6.54% equity stake in Sedibelo to zero, citing dim medium-term prospects for the platinum group metals company.
Good morning, and welcome to Gemfields 2024 interim results shareholder and investor webcast. Today, Sean Gilbertson, CEO; and David Lovett, CFO, will present Gemfields' financial results for the first six months of the year to June 30, 2024. At the end of the presentation, we will go into Q&A. (Event Instructions)
Before we start, please take note the important information on our disclaimer on slide 2. And with that, I will pass it on to Sean to start on slide 3.
Thank you, Ian. Good morning, and welcome, everybody. On slide 3, this is a slide that many of you would have seen before, setting out our mission, strategic objective, and our key priorities. I won't dwell on this because our approach hasn't changed.
And while safety remains our top priority, we are in the midst, very clearly, of the third strategic objective shown at the bottom of the slide, namely investing for growth. And I'd like
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