7th Mar 2011 07:00
Gemfields Plc
("Gemfields" or the "Company")
Interim results for the six months ended 31 December 2010
7 March 2011
Gemfields Plc ("Gemfields" or "the Company", Ticker "GEM") presents its interim report for the six months ended 31 December 2010 (the "Period").
The Chairman's Statement and the primary financial statements are set out below. The full interim report can be viewed on the Company's website at www.gemfields.co.uk.
Key financial indicators:
- Profit for the period of US$ 15,547,789 (2009: Loss of US$5,814,609).
- Revenue from rough and finished emerald sales of US$ 29,051,279 (2009: US$ 12,060,731).
- Cash at bank of US$ 15,508,993 (2009: US$ 7,683,333).
- All bank loans and leases repaid, leaving the Group debt free.
Key operational developments during the financial year:
- Gemstone production in the first six months of the current financial year (18.7 million carats) has exceeded the entire prior year's production of 17.4 million carats.
- Significant increase in achieved per-carat prices as a result of the continuing increase in demand for consistently supplied ethical emeralds across all major markets.
- Grade of 527 carats per tonne for the 6 month period - significantly above the average of 351 carats per tonne recorded over the last 5 years.
- Unit production costs of approximately US$0.35 per carat versus an historic average of US$0.64 per carat.
Key developments since the end of the period:
- "Gem Mining Company of the Year Award" received at the 57th Annual Tuscon Gem and Mineral Show in January 2011.
- Diamond core drilling and bulk sampling on key targets re-commenced within the Kagem licence area.
- CCTV security system upgrade completed in various key sites, including pit, wash plant and sort house.
- New marketing initiatives implemented, including the Indian "Emeralds for Elephants" project in conjunction with the World Land Trust and Gemfields' "Uniquely You" emerald advertising campaign.
- Next emerald auction to be held in Jaipur, India, from 10-14 March 2011.
The Chairman's Statement and the primary financial statements are set out below and will be available to view on the Company's website at www.gemfields.co.uk.
Ian Harebottle, CEO of Gemfields, commented:
"Gemfields has enjoyed an excellent six month period in which our output fromthe Kagem mine exceeded the entire prior year's production. In addition, weare seeing a significant increase in global demand for Gemfields' ability toprovide a consistent supply of well graded and ethically sourced emeralds, asis clearly demonstrated by the record sales of USD 19.6 million achieved atthe December 2010 auction. Following the encouraging results reported at ourprevious year-end, the group has continued to enjoyed stronger margins,leaving us with a robust and debt free balance sheet. In line with our ongoinginventory and market building initiatives, we do not intend to host a furtherhigh grade auction in the coming half year, meaning that revenues during thesecond half will be derived ostensibly from the upcoming lower grade auctionon 10-14 March 2011."Enquiries:Dev Shetty, CFO [email protected] Plc Tel: +44 (0)20 7518 3402
Tarica Mpinga/Andrew Chubb Tel: +44 (0)20 7050 6500
Canaccord Genuity LimitedNeil Passmore Tel: +44 (0)20 7155 8630JP Morgan CazenoveJos Simson/Paul Youens Tel: +44 (0)20 7920 3150Tavistock CommunicationsDear Shareholder,
Considering the numerous challenges that we have faced during the past twoyears and the positive results we are now able to present to the market, it isimpossible not to be somewhat pleased with what we have achieved and in such ashort space of time. Gemfields' future is, however, not going to be determinedsimply by what we have overcome but more so by the way in which we manage thenumerous and varied opportunities now being presented to us, many of these asa direct result of our recent successes.I look forward to being able to update you on our continued growth andprogress in due course and, as always, would like to thank each member of ourteam for their hard work and dedication, and you our loyal shareholders, foryour continued support and commitment to our company and our vision.
Key financial indicators:
- Profit for the period of US$ 15,547,789 (2009: Loss of US$5,814,609).
- Revenue from rough and finished emerald sales of US$ 29,051,279 (2009: US$ 12,060,731).
- Cash at bank of US$ 15,508,993 (2009: US$ 7,683,333).
- All bank loans and leases repaid, leaving the Group debt free.
Key operational developments during the financial year:
- Gemstone production in the first six months of the current financial year (18.7 million carats) has exceeded the entire prior year's production of 17.4 million carats.
- Significant increase in achieved per-carat prices as a result of the continuing increase in demand for consistently supplied ethical emeralds across all major markets.
- Grade of 527 carats per tonne for the 6 month period - significantly above the average of 351 carats per tonne recorded over the last five years.
- Unit production costs of approximately US$0.35 per carat versus an historic average of US$0.64 per carat.
Key developments since the end of the period:
- "Gem Mining Company of the Year Award" received at the 57th Annual Tuscon Gem and Mineral Show in January 2011.
- Diamond core drilling and bulk sampling on key targets re-commenced within the Kagem licence area.
- CCTV security system upgrade completed in various key sites, including pit, wash plant and sort house.
- New marketing initiatives implemented, including the Indian "Emeralds for Elephants" project in conjunction with the World Land Trust and Gemfields' "Uniquely You" emerald advertising campaign.
- Next emerald auction to be held in Jaipur, India, from 10-14 March 2011.
Strategic Review
Our focus over the past two years has been single-mindedly directed at:
- reducing operating costs;
- improving economies of scale;
- developing an efficient and sustainable route-to-market and sales pipeline for our product; and
- increasing consumer awareness and demand for Gemfields ethical Zambian emeralds.
We are now increasingly being presented with various opportunities for potential growth.
While continuing to deliver on the above targets, we will simultaneously beginto manage and evaluate these new opportunities in a positive, yet cautious andcontrolled manner. We will seek to maximise the inherent value containedwithin Gemfields' core and proprietary coloured gemstone competencies, most
notably:- exploration/mining;- distribution/sales; and- marketing/promotion.Operations- Mining - KagemThe Kagem emerald mine in Zambia is presently Gemfields' only operatingemerald mine and serves as the source of emeralds and beryl for our downstreambusiness. Given the level of uncertainty prevailing in the global markets atthe time, Gemfields took the decision early in 2009 to reduce the scale ofmining at Kagem, while improving operational efficiencies. Operating costs forthe period of US$189 per tonne of ore (known as "Reaction Zone") have remainedbelow the historic average of US$244 per tonne, and combined with cautiousplans to increase the scale of mining operations in the near term, furtherefficiencies will continue to be sought.
Kagem's key annual production parameters are summarised below:
KAGEM Annual Units Yr to 30 Yr to 30 Yr to 30 Yr to 30 6 monthsProduction Summary Jun 07 Jun 08 Jun 09 Jun 10 to 31 December 10 Gemstone Production million 9.4 9.9 28.0 17.4 18.7(Emerald + Beryl) caratsOre Production `000 tonnes 29 42 80 61 35(Reaction Zone)Grade (Emerald + carats/tonne 325 233 349 286 527Beryl/Reaction Zone)
Waste Mined (including million 2.8 5.1 4.0
2.5 1.7TMS) tonnesStripping Ratio 96 120 50 42 48Kagem's unaudited total operating costs for the six months ending 31 December2010 totalled US$6.6 million implying an average production cost during theperiod of US$0.35 per carat of emerald and beryl (compared with US$0.73 percarat for year ending 30 June 2010). These low operating costs are partiallyas a result of the exceptionally good production volumes achieved during theperiod. Given the companies projected growth plans, the fluid nature of thedeposit and the fact that mining activity is likely to be somewhat reducedbetween December through March on account of it being the rainy season (whichcomplicates open pit mining), operating costs, while expected to remain wellcontrolled, are not anticipated to remain at these very low levels over thelonger term.The stripping ratio is expected to increase in the short to medium term asareas of overburden are mined in order to expand the levels of available oreand as the Company seeks to expand its scale of operations. This will have acommensurate impact on total mining costs.Gemfields' underground mining project continues to make progress with a totalof 58.9 meters of horizontal advance during the six month period from 70.5blasts (versus 58.8 meters from 66 blasts in the six month period to June2010). The total linear development to date for the project (from December2009 to December 2010) is 135.5 meters. A total of 1,832 tonnes of ore wereproduced during the six month period with 48 tonnes of waste removal (versus406 tonnes of ore and 811 tonnes of waste for the six month period to June2010). Production reached 109,438 carats in the six month period ending 31December 2010 (versus 34,463.37 carats in the six month period to June 2010).
- Sales and Inventories
Gemfields has elected to offer its rough production to selected market participants by way of sealed bid auctions where all material tendered is certified by Gemfields as natural, untreated and of Zambian origin. Many of the world's top gem houses and emerald lapidaries are invited to attend these events.
During the period, Gemfields hosted high quality emerald auctions in July andDecember 2010. Some 30 companies drawn from Germany, India, Israel and the USAattended these events which saw 1.72 million carats of emerald and beryloffered in 46 separate lots. The sales from these auctions totalled US$27.1million with 42 out of the 46 lots being sold. The results of the auctionsheld to date are summarised below. AUCTION RESULTS JULY `09 NOVEMBER '09 MARCH '10 JULY `10 DECEMBER `10 SUMMARY AUCTION AUCTION AUCTION AUCTION AUCTIONDates 20-24 July 23-27 11-15 March 19-23 July 6-10 December 2009 November 2009 2010 2010 2010Location London, Johannesburg, Jaipur, India London, Johannesburg, England SA England SAType Higher Higher Lower Quality Higher Higher Quality Quality Quality QualityCarats offered 1.36 million 1.12 million 28.90 million 0.85 million 0.87 millionCarats Sold 1.36 million 1.09 million 22.80 million 0.80 million 0.75 millionNo. of companies 23 19 25 37 32placing bidsAverage no. of 10 13 8 18 16bids per lotNo. of lots 27 19 56 27 19offeredNo. of lots sold 26 14 49 24 18Percentage of lots 96% 74% 88% 89% 95%soldPercentage of lots 99.8% 97.2% 78.9% 94.2% 86%sold by weightPercentage of lots 82% 76% 89% 87% 99%sold by valueTotal sales USD 5.9 USD 5.6 USD 7.2 USD 7.5 USD 19.6realised at million million million million millionauctionAverage per carat USD 4.40 per USD 5.10 per USD 0.31 per USD 9.35 per USD 26.20 persales value carat carat carat carat carat Significant interest in attending the Gemfields' auctions provides soundevidence of an increase in demand for our products across all grades and allmarkets. This trend was further demonstrated in the positive results achievedat the auction held in December 2010.Due to the improving market conditions and the demonstrated sales success inthe December auction, the Group now values its unsold period-end inventoryarising from production during the period, at its production cost rather thanat the likely net realisable value (NRV). Some additional inventory alsoremains in stock from prior production periods, but this continues to be heldat the Directors' assessment of its likely net realisable value due to itslower quality and internal expectations of market prices for these grades. Thevaluation of our period end inventory is in line with the Company's preferredconservative approach to accounting policy. The internal valuation of the NRVof Gemfields' cut and polished emerald inventory has been assumed as theestimated value of the rough material consumed, plus the physical costs ofcutting and polishing.
- Geology and Exploration
Given the improving market and financial conditions, the decision has beentaken to re-initiate a number of geological and exploration projects, some ofwhich were put on hold in 2009 and some of which are new projects motivated byrecent developments that have taken place over the past year. These include:-- Fwaya Fwaya 3 ("FF3") - Work on the separate FF3 pit commenced in February2010. A pit was planned with a 100 metre strike length and a maximum verticaldepth of 35 metres, involving 511k tonne of rock handling. However due to thepotential of wall collapse as a result of the shallow depth and heavy rains,it was decided to place the operation at FF3 temporarily on hold. A total of329k tonne of rock handling was carried out with 1.9 tonnes of Reaction Zonemined and total 3,760 carats of emeralds and 23K carats of beryl was producedbefore the operation was abandoned.- Lushingwa - A new target exploration area that has recently been identifiedand is being given some level of priority as a result of the positive natureof the early test results. Exploration diamond core drilling was commenced onthis site in January 2011.
- Diamond-core drilling - an in-house drill team, including the acquisition of a diamond drill-rig to facilitate continued drilling of various key target sites within Gemfields' various Zambian emerald licence areas, was made operational during December 2010.
- Geological and geotechnical assessment of the various Oriental Mining SARL licences areas in Madagascar.
- Security
Securing the Group's assets, protecting its people and limiting the theft of gemstones remain key operational priorities. While the various security initiatives implemented during the past year have begun to show positive results, and are attested to by a reduction in the volumes of material available in the informal markets neighbouring the mine, the reduction of theft and challenges of physically securing the mining licence area require continuous efforts by our security team and is an ongoing challenge. The installation of new and upgraded CCTV systems across various key sites, including the Chamapit, wash-plant and sort-house, and the associated IT infrastructure was commissioned and made fully operational by the of end January 2011. This system is already proving to be invaluable, delivering positive results, and is likely to be a vital component of the Company's overall security infrastructure in the longer term.
- Illegal mining activities within the Kagem Licence area
Kagem continues to experience organised illegal mining activity within theboundaries of the Kagem mining licence. While the matter is as yet not fullyresolved, Gemfields continues to work in cooperation with all key Zambianministries in its efforts to ensure that an amicable and peaceful solution isimplemented and Kagem's legal rights are protected and respected.
- Marketing and Promotions
Apart from our core focus on the production, distribution and sale of rough emeralds, Gemfields is also in the process of repositioning itself as a leader in the mining and marketing of ethically-produced "Premium Coloured Gemstones", gemstones that can be traced directly from mine to market.
Gemfields sponsored the "Retail Jeweller India Awards" in August 2010, whichhas since been aired on one of India's leading business news channels, with anestimated viewership of over 13.7 million people.Gemfields current marketing focus is directed at the Indian and Asian markets,where it will be launching a marketing, promotions and retailer trainingprogramme aimed at educating the Indian retail community on Gemfields andZambian emeralds. Since the launch, training has been given to sales staff inover 35 large Indian retailers in Western India.
Gemfields is moving forward with plans to recreate the successful "Emeralds for Elephants" project in India in 2011. The Company has appointed a PR company in India and the UAE to grow the emerald category and create aspiration for Gemfields Zambian emeralds in these two growing markets through product placement, media coverage, celebrity endorsement and industry collaborations.
Gemfields has been working on initiating ongoing partnerships between ourPreferred Distribution Partners and leading Indian jewellery manufacturers tocreate Zambian emerald collections for the US mass retailer market. We havealso been working with a number of US based jewellery television companies whohave visited the mine to understand how emeralds are mined, taking footage toair on their TV channels, including the mining, sorting and grading process,our community and environmental initiatives and interviews with keyindividuals in the Company.
- Environment and Corporate Social Responsibility
Kagem Mining Limited, in its continued effort to better the lives of thepeople in the communities of the Lufwanyama District, is currently supportinga community farming project, three schools and a medical clinic. The clinic,built some years ago, is now in the process of refurbishment and extensionincluding the construction of staff housing, a maternity wing, bathrooms,toilets, and a shelter for patients and guardians. The community is beingencouraged to fully participate in order to feel a sense of ownership.
Similarly, the schools are being upgraded and the farming community continues to receive support from Kagem through the provision of farming supplies and the purchasing of their produce for consumption at the Kagem mine site.
The company's own CSR contributions are now also being augmented by additionalcontributions from third party down-stream stakeholders. This is an excitingdevelopment and proof of the depth and breadth of value that can beforthcoming to local governments and communities when partnerships are managedin a formal, open and transparent manner.
- ENVIRONMENTAL COMPLIANCE
All projects remained compliant with prevailing environmental regulationsduring the period with all relevant environmental licenses being successfullyrenewed during 2011. The Underground Environmental Project Brief (EPB) wasalso approved on 9th July 2010 and all conditions have been adhered to and asstipulated by the Environmental Council of Zambia.
- ENVIRONMENTAL MONITORING
Drinking water is analysed on an on-going and regular basis in order to ensureits suitability for human consumption. Noise and dust levels are also measuredat all work and residential sites and continue to be well within normal limitsin the vast majority of instances (the standard noise limits are set at 85dB).Protective ear, nose and other gear is provided where necessary.
- ZERO CARBON PROJECT
Planting of indigenous and environmentally friendly saplings, as stipulated in the Company's Zero Carbon Project and adopted in 2008, continues at target sites and old inactive dumping areas.
- SAFETY AND HEALTH
Training formed a greater part of the overall safety and health aspects of theproject during the period under review. No reportable accidents were recordedduring the period.- Impairment
The Directors took the decision to write down the value of Kagem to zero in Gemfields' 2009 financial statements, driven largely by the ongoing uncertainty in the global economy, the loss-making performance of the Kagem mine during the preceding year and the lack of reliable emerald prices made it difficult to justify forecasts showing a positive cashflow with reasonable certainty.
With Gemfields now becoming increasingly optimistic that Kagem will become aconsistently viable operation in the foreseeable future, and in recognition ofthe fact that many of the previous uncertainties are either alleviating orbetter understood, Gemfields has initiated a re-assessment of the value ofthese assets.
- Kariba Amethyst Mine
Kariba amethyst mine (held in Kariba Minerals Ltd, and of which Gemfields own50%) continues to deliver noteworthy production volumes despite a heavy rainyseason. Demand for this product is stable in China and is growing steadily inIndia. Kariba is seeking to broaden its customer base and market footprint andis planning to hold a pilot rough amethyst auction in Jaipur in March 2011 inconjunction with Gemfields' low quality emerald auction. Proposed increasedfinancial commitments by Gemfields to further growth and development at Karibais pending a resolution of the proposed acquisition by Gemfields of a further25% stake in Kariba from the Government of Zambia.
Oriental Mining S. a. r. l.
In 2008, Gemfields exercised its option to acquire the entire issued share capital of Oriental Mining s.a.r.l., a company incorporated in Madagascar ("Oriental"). Gemfields was granted the option by Rox Limited (a company controlled by Pallinghurst Resources) ("Rox") pursuant to an agreement between Gemfields and Rox dated 18th December 2007.
Oriental has a total of 15 exploration licences covering emeralds, rubies, sapphires, tourmalines and garnets in the Antananarivo, Fianarantsoa and Toliara provinces of Madagascar, and the right to an additional five exploration licences that are pending approval from the Madagascan Ministry of Energy and Mines.
Madagascar is recognised as one of the most exciting colourgemstone provinces in the world today, with several key discoveries havingbeen made there during the last decade. Gemfields believes that, in the mediumto long term, gemstone-related activity in the country has the potential tobecome a valuable part of Gemfields' asset portfolio. Given Madagascar'simproving political and security environment, a preliminary geological andgeotechnical assessment of these areas, carried out by Mineralogical andPeterological Services ("M.A.P.S.") has classified the various licences intofour groups ranging from highly prospective to limited or no potential. Atotal of nine licences have been identified to fall into the prospective andhighly prospective categories and will be undergoing additional investigationin the coming year.
Post reporting period events
Gemfields' next auction of (predominantly lower quality) rough emeralds is scheduled to take place in Jaipur during March 2011.
Objectives and Outlook for the year ahead
Objectives:
- Build on the solid cost and efficiency management structures that are now well entrenched within the Company;
- Leverage the clear strategic advantages that we now have within the core aspects of exploration, mining, distribution, sales and marketing within the coloured gemstone sector. Look to use these to drive additional growth;
- Use the Company's improved cash flow status to support increased exploration within the existing portfolio of mining licences and the evaluation of potential acquisition sites;
- Implement an appropriate mine-plan within Kagem's Chama pit so as to allowfor a simultaneous increase in opencast production volumes and the initiationof larger scale underground mining in this same site and over the near termfuture;
- Continue to position Gemfields as the world leader in the Premium Coloured Gemstone sector; and
- Establish a trial cutting and polishing facility on the mine to establish the feasibility of local beneficiation.
Outlook:
- The Kagem mine plan continues to be driven by improving mining efficiencies,targeting of higher grade areas and further reducing relative operating costs.Possible expansion of mining activities within the Kagem mining licence willcontinue to be reviewed, assessed and implemented where appropriate.
- Gemfields continues to pursue its strategy of consolidating the Premium Coloured Gemstone supply chain and increasing consumer awareness and demand for premium transparent route to market products.
- In an effort to ensure a consistent quality mix of well graded roughemeralds to the downstream market, aligned to a measured growth in consumerdemand, no plans exist for an additional high quality emerald auction duringthe coming half year. Anticipated revenues during the second half of the yearwill thus stem primarily from the lower quality auction to be held in March2011 and finished goods sales.
- Increasing demand for Gemfields' products, supported by targeted marketing initiatives, is likely to continue for the near to medium term and should deliver continued prices increases and improved operating margins.
- While the year ahead will offer a number of challenges Gemfields is reasonably optimistic of its ability to achieve its internal growth and expansion targets.
Graham Mascall4 March 2011Gemfields PLC
Consolidated statement of comprehensive income
for the six months ended 31 December 2010
6 months ended 6 months ended Year ended 31 December 31 December 30 June 2010 2009 2010 (Unaudited) (Unaudited) (Audited) Note US$'000 US$'000 US$'000 Revenue 29,051 12,061 19,906 Decrease in inventory (3,180) (7,369) (1,169)Mining and production costs (7,777) (6,152) (11,784) ________ ________ ________Total cost of sales (10,957) (13,521) (12,953) ________ ________ ________ Gross profit/(loss) 18,094 (1,460) 6,953 Other income 61 200 199 Administrative expensesOther administrative expenses (2,583) (2,989) (5,134)Depreciation (1,231) (1,618) (3,248)Revaluation of available-for-sale 1,246 539 (1,018)investmentsRelease of decommissioning - - 4,561liabilitiesTotal Administrative expenses (2,568) (4,068) (4,839) ________ ________ ________ Profit/(loss) from operations 15,587 (5,328) 2,313 ________ ________ ________ Finance income 12 7 10Finance expenses 3 (51) (494) (822) ________ ________ ________ Profit/(loss) before taxation 15,548 (5,815) 1,501 ________ ________ ________ Tax credit - - 1,082 ________ ________ ________ Profit/(loss) and totalcomprehensive income/(loss) forthe period 15,548 (5,815) 2,583 ________ ________ ________Attributable to:Equity shareholders of the parent 12,445 (5,815) 2,068Non-controlling interests 3,103 - 515 ________ ________ ________ 15,548 (5,815) 2,583 ________ ________ ________ Earnings/(loss) per shareBasic 4 US$0.04 US$(0.02) US$0.01Diluted 4 US$0.04 US$(0.02) US$0.01All amounts relate to continuingactivities. Gemfields PLC
Consolidated statement of changes in equity
for the six months ended 31 December 2010
Attributable to equity holders of the parent Cumulative Non- Share Share Merger Option Translation Retained Total controlling Capital Premium Reserve Reserve Reserve Defecit Interest Equity $000s $000s $000s $000s $000s $000s $000s $000s $000s
Balance at 31 December 2009 6,160 96,823 121,005 2,286 (7) (213,740) 12,527
- 12,527Total comprehensive income for - - - - -
7,883 7,883 515 8,398the six monthsShare based payments - - - 20 - - 20 - 20Expired options - - - (693) - 693 - - - ____ _______ ______ ______ ________
_______ _____ _______ _____ Balance at 30 June 2010 6,160 96,823 121,005 1,613 (7) (205,164) 20,430 515 20,945
____ _______ ______ ______ ________ _______ _____ _______ _____Total comprehensive income for - - - - -
12,445 12,445 3,103 15,548the six monthsShare based payments - - - 77 - - 77 - 77 ____ _______ ______ ______ ________ _______ _____ _______ _____Balance at 31 December 2010 6,160 96,823 121,005 1,690 (7) (192,719) 32,952 3,618 36,570 ____ ______ ______ ______ ________ ______ _____ _______ _____
The nature and purpose of each reserve within Shareholders' equity is described as follows:
Reserve Description and purposeShare capital Amount subscribed for share capital at nominal value.Share premium Amount subscribed for share capital in excess of nominal value.Merger reserve The difference between the fair value of the shares issued as consideration for acquisition of subsidiaries in excess of the nominal value of the shares, where 90% or more of shares are acquired.Option reserve Cumulative fair value of options charged to the statement of comprehensive income.Cumulative translation reserve Cumulative gains and losses on retranslating the net assets of overseas operations to the presentation currency.Retained deficit Cumulative net gains and losses recognised in the consolidated statement of comprehensive income.Non-controlling interest Amounts attributable to non-controlling shareholders.Gemfields PLC
Consolidated statement of financial position
at 31 December 2010 31 December 31 December 30 June 2010 2010 2009 (Unaudited) (Unaudited) (Audited) US$'000 US$'000 US$'000Non-current assets
Property, plant and equipment 7,091 6,601
6,008
Available-for-sale Investments 2,658 2,968
1,412 ________ ________ ________ 9,749 9,569 7,420 ________ ________ ________Current assetsInventory 14,316 11,076 17,380Trade and other receivables 4,340 992 3,051Cash and cash equivalents 15,509 7,683 2,879 ________ ________ ________Total current assets 34,165 19,751 23,310 ________ ________ ________Total assets 43,914 29,320 30,730 ________ ________ ________Non-current liabilitiesDeferred taxation (46) (1,134) (46)
Other non-current liabilities (489) (8,985)
(1,579) ________ ________ ________ (535) (8,985) (1,625) Current liabilitiesTrade and other payables (2,461) (3,195) (2,204)Current tax - - (31)Borrowings - (3,561) (3,506)Other current liabilities (4,348) (1,052) (2,419) ________ ________ ________ (6,809) (7,808) (8,160) ________ ________ ________Total liabilities (7,344) (16,793) (9,785) ________ ________ ________ ________ ________ ________Total net assets 36,570 12,527 20,945 ________ ________ ________Capital and reserves attributable toequity holders of the parentShare capital 6,160 6,160 6,160Share premium 96,823 96,823 96,823Merger reserve 121,005 121,005 121,005Option reserve 1,690 2,286 1,613
Cumulative translation reserve (7) (7)
(7)Retained deficit (192,719) (213,740) (205,164) ________ ________ ________ 32,952 12,527 20,430Non-controlling interests 3,618 - 515 ________ ________ ________Total equity 36,570 12,527 20,945 ________ ________ ________
The financial statements were approved by the Board of Directors and authorised for issue on 4 March 2011.
Devidas Shetty
Director
Company Registration Number 05129023
Gemfields PLC
Consolidated statement of cash flows
for the six months ended 31 December 2010
At 31 December At 31 At 30 June December 2010 2009 2010 (Unaudited) (Unaudited) (Audited) US$'000 US$'000 US$'000
Cash flows from operating activities
Profit/(loss) for the year before tax 15,548 (5,815)
1,501 Depreciation 1,231 1,618 3,248Share-based payments 77 254 274Finance income (12) (7) (10)Finance expense 51 494 822
Profit on sale of property, plant and 9 -
(148)
equipment
Release of decommissioning liabilities - -
(4,561)
(Gain)/Impairment of available for sale (1,246) (539)
1,018
investments
(Increase)/decrease in trade and other (2,685) 629
(1,431)
receivables
Increase/(Decrease) in trade and other 440 (1,175)
(518)payablesIncrease in provisions 625 - 369Decrease in inventory 3,064 7,369 1,065 ________ ________ ________
Net cash flow from operating activities 17,102 2,828
1,629
Cash flows from investing activitiesInterest received 12 7
10
Purchase of property, plant and equipment (927) (2,375)
(3,262)
Sale of property, plant and equipment - 150
147
________ ________
________
Net cash flow from investing activities (915) (2,218)
(3,105)
Cash flows from financing activitiesRepayment of borrowings (3,506) (1,386) (3,777)Receipt of loans - 2,085 2,085Finance expense 72 (305) (559) ________ ________ ________
Net cash flow from financing activities (3,434) 394
(2,251)
Net increase/(decrease) in cash and cash 12,753 1,004
(3,727)
equivalents
Cash and cash equivalents at start of 2,879 6,869
6,869
period
Exchange differences on translation (123) (190)
(263)
________ ________
________
Cash and cash equivalents at end of period 15,509 7,683
2,879
________ ________
________
vendorRelated Shares:
Gemfields Grou.