Mumbai: Gemfields plc has announced the results of its auction of predominantly lower quality rough emerald extracted by Kagem Mining Ltd in Zambia (which is 75% owned by Gemfields and 25% by the Government of the Republic of Zambia). The auction was held in Jaipur, India from 18th – 21st of November, 2015 and the proceeds of this auction will be fully repatriated to Kagem Mining Ltd in Zambia, and with all royalties due to the Government of the Republic of Zambia being paid on the full sales price achieved at the auction.
A total of 29 companies placed bids in Gemfields’ second auction of Kagem production in the current financial year. This has been the first auction of predominantly lower quality rough emerald outside Zambia since June 2012. The auction saw 5.07 million carats of lower quality emerald extracted from Kagem placed on offer, with 18 of the 23 lots offered being sold, generating auction revenues of USD 19.2 million. The auction realized an overall average value of USD 4.32 per carat, a new record for lower quality auctions. The Company’s 20 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 379 million in total revenues.
- Record auction revenues for lower quality auctions of USD 19.2 million;
- New record of USD 4.32 per carat for lower quality auctions
- Highest number of companies placing bids (since Jaipur auction of March 2011);
- Of the 5.07 million carats offered for sale, 4.45 million carats were sold (88%); and
- 20 Kagem auctions held since July 2009 have generated USD 379 million in total revenues.
Ian Harebottle, CEO of Gemfields, commented saying, “Our return to Jaipur has delivered a knock-out result at a time when global commodity and diamond prices are experiencing well-documented difficulties. Despite the volatility across international financial markets, demand for, and prices of, emeralds, clearly remain as robust as ever. The counter-market cyclicality often associated with precious gemstones, and their reputation as a store of value in turbulent times, have once again shone through.
Kagem is a partnership between the Zambian Government and Gemfields, and we’d like to thank the Government for their vision and support in internationalizing the Zambian emerald industry and for supporting an ‘international auction circuit’ that will see Lusaka remain one of the key hubs for hosting emerald auctions in order to ensure we reach an expanded client base to optimize the prices achieved.”
In addition to the auction of gemstones mined by Gemfields at Kagem, the Jaipur event was also used to host a traded emerald auction of predominantly higher quality emeralds originating from Zambia and Brazil and obtained by Gemfields in the open market from various sources. The traded auction yielded additional gross revenue of USD 1.1 million with 20,400 carats sold.
Gemfields’ next auction is expected to take place in December 2015 in Singapore and, based on current market demand, is anticipated to be predominantly comprised of mixed lots of ruby and corundum from the Montepuez ruby deposit in Mozambique.