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GEMFIELDS has awarded more than 51 million conditional shares to senior management under its long-term incentive plan, with most of the awards linked to earnings, shareholder returns and operational performance at its Montepuez Ruby Mining (MRM) operation in Mozambique.
The awards cover 51.1 million shares, equal to 2.96% of Gemfields’ issued share capital. Of each award, 75% consists of performance shares, while the remaining 25% is made up of restricted shares.
The awards normally vest after three years, subject to employment and other conditions.
The performance period runs from July 2026 to June 2029.
Gemfields said 35% of the performance shares would depend on cumulative adjusted earnings per share (AEPS), which strips out unrealised fair-value gains and losses from headline earnings per share.
None of these shares will vest if AEPS is below US3.25c, while all will vest if it reaches US4.06c or more.
Another 35% depends on total shareholder return (TSR). None will vest if annual TSR growth is below 8%, while all will vest if it reaches 12%.
A further 20% depends on ore processed at MRM. Full vesting requires cumulative processing of 11.39 million tonnes over the three-year period, while volumes below 10.31 million tonnes result in no vesting.
The remaining 10% is linked to the group’s lost-time injury frequency rate.
Interim CEO and CFO David Lovett received 14.24 million conditional shares, with a deemed value of R9.82m.
The incentive award comes as Gemfields works to improve production and cash generation at MRM, where weaker premium ruby recoveries and the ramp-up of its new processing plant have recently put pressure on cash flow.