Gemfields Announces Auction Results

Mumbai: Gemfields plc has announced the results of its auction of predominantly commercial quality rough emerald extracted by Kagem Mining Ltd (which is 75% owned by Gemfields and 25% by the Government of the Republic of Zambia) in Zambia.

The auction also included higher quality amethyst from Kariba Minerals Ltd in which Gemfields has a 50% interest, with the balance also belonging to the Government of the Republic of Zambia and with the revenues and royalties being similarly treated.

The auction, at which no beryl was placed on offer, was held in Jaipur, India, from 26 – 29 September 2016.

Highlights of Emerald Auction:

  • Auction revenues of USD 10.7 million;
  • A robust USD 3.28 per carat for the specific auction mix offered;
  • Of the 4.05 million carats offered for sale, 3.27 million carats were sold (81%); and · 23 Kagem auctions held since July 2009 have generated USD 437 million in total revenues.

Highlights: The Amethyst Auction:

  • Auction revenues of USD 0.4 million;
  • The average realised price was 3.73 US cents per carat; and
  • Of the 13.6 million carats offered for sale, 11.6 million carats were sold (86%).


A total of 30 companies placed bids in Gemfields’ first auction of Kagem production in the current financial year.

The auction saw 4.05 million carats of commercial quality emerald extracted from Kagem placed on offer, with 15 of the 19 lots offered being sold, generating auction revenues of USD 10.7 million. The auction realised a pleasing overall average value of USD 3.28 per carat, a robust figure considering the specific quality mix of goods placed on offer at the auction.

The Company’s 23 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 437 million in total revenues. 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 prices achieved at the auction.

The results of the five most recent commercial quality Kagem auctions are summarised in the table below. Additional historic information regarding auctions of similar quality goods can be found in the ‘Further Information’ section of this announcement:




FEB ’15



NOV ’15



MAY ’16



SEP ’16



Dates 5-8 Aug 2014 24-27 Feb 2015 18-21 Nov 2015 17-20 May 2016 26-29 Sep 2016
Location Lusaka, Zambia Lusaka, Zambia Jaipur, India Jaipur, India Jaipur, India
Type Commercial Quality Commercial Quality Commercial Quality Commercial Quality Commercial Quality
Carats offered 12.11 million 10.13 million 5.07 million 3.67 million 4.05 million
Carats Sold 11.58 million 3.90 million 4.45 million  2.78 million  3.27 million
No. of companies placing bids 21 21 29 26 30
Average no. of bids per lot 7 5 6 7 7
No. of lots offered 21 26 23 18 19
No. of lots sold   17 19 18 14 15
Percentage      of sold lots 81% 73% 78% 78% 79%
Percentage      of sold by weight lots 96% 39% 88% 76% 81%
Percentage      of sold by value lots 88% 88% 95% 79% 82%
Total sales realised at auction USD 15.5 million USD 14.5 million USD 19.2 million USD 14.3 million USD 10.7 million
Average per carat sales value USD
















The specific auction mix and the exact quality of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of variations in mined production and market demand. Each auction naturally contains a degree of variation in overall quality composition, which is typically reflected in the average per carat sales value and means that the results of each auction are not always directly comparable.

The Kariba Amethyst Auction:

In addition to the auction of gemstones mined by Gemfields at Kagem, the Jaipur event was also used to host an auction of higher quality amethyst mined by Kariba Minerals Ltd (in which Gemfields has a 50% interest).

The auction saw 13.6 million carats of higher quality amethyst extracted from Kariba placed on offer, with 10 of the 14 lots offered being sold, generating auction revenues of USD 0.4 million from the 11.6 million carats sold. The amethyst auction realised an overall average value of 3.73 US cents per carat.

Gemfields has hosted only four prior rough amethyst auctions which took place in Jaipur in March 2011, Lusaka in February 2015, Singapore in September 2015 and Lusaka in April 2016.

Next Auction:

Gemfields’ next auction is expected to take place in December 2016 in Singapore. The auction will predominantly comprise of mixed quality rough ruby from the Montepuez ruby deposit in Mozambique.

Ian Harebottle, CEO of Gemfields, commented, “With 81% of the gems offered successfully sold, Jaipur has yet again delivered a positive result in support of Gemfields’ vision and reflecting the fact that the platform upon which the growth of the coloured gemstone sector is being built remains encouraging. While there is evidence of a softening in demand for some of the lower qualities in some markets, the overall average price per carat achieved was impacted on by this auction not having the benefit of some of the larger-size, higher quality gems that were placed on offer in our May 2016 auction.

As always, we thank our partners in the Zambian Government for their vision and support in building and internationalising the Zambian gemstone sector by promoting transparent and globally competitive practices.”