Gemfields Reports Auction Revenues of $15.5 Million

Gemfields_logoLusaka: Gemfields plc reported auction revenues of $15.5 million, the second highest achieved at any lower quality auction, of its auction of mostly lower quality rough emerald and beryl held in Lusaka, Zambia, from August 5 to 8.

Excluding the sale of 1.5 tonnes of low grade beryl, the average realized price was $3.61 per carat, a new record for lower quality auctions (no beryl was sold in the prior three lower quality auctions).

There was an overall realized price of $1.34 per carat, including the sale of low grade beryl. Of the 12.1 million carats offered, 11.6 million carats were sold. The 16 Kagem auctions held since July 2009 have generated $276 million in total revenues.

A total of 21 companies attended and bid in what was the first Gemfields auction during the current financial year (ending 30 June 2015). The auction was the fifth to be held in Lusaka since April 2013.

The auction saw 12.1 million carats of emerald and beryl extracted from Kagem placed on offer, with 17 of the 21 lots offered being sold, generating auction revenues of $15.5 million. Gemfields’ next auction of emeralds is presently scheduled to take place before 31 December 2014.

Gemfields CEO Ian Harebottle commented: “Gemfields has now completed five successful auctions in Zambia, all during the last 17 months. We were pleased to see a significant quantity of our low grade beryl sold at this auction, something we have not seen at auction since November 2011. Excluding the effect of this material, we set a new record unit price of $3.61 per carat for our lower quality auctions, underlining yet again how robust demand remains for our Zambian emeralds.

“The role played by Zambian emeralds in the international market has never been more important and we remain delighted that they are the emerald of choice for so many. We will seek to further expand their reach with our determined marketing initiatives and by seeking a wider client base internationally, including our new audience of rough ruby buying clients.”