Gemfields reveals promising auction results

Gemfields revealed promising results on Monday from a recent auction of predominantly higher quality rough emerald extracted by Kagem Mining, 75% owned by the firm and 25% by the Government of the Republic of Zambia.

The AIM-traded company said the auction also included higher quality amethyst from Kariba Minerals, in which Gemfields holds a 50% interest with the balance also belonging to the Zambian government.

Gemfields said the emerald auction brought in revenues of $33.1m, with a new record of $70.68 per carat for higher-quality auctions.

Of the 558,000 carats offered for sale, 469,000 were sold.

The company confirmed that the 21 Kagem auctions held since July 2009 had generated $412m in total revenues.

Its amethyst auction generated revenues of $0.22m, with the average realised price reaching $3.26 per carat.

Of the 9.4m carats offered for sale, 6.6m were sold.

"Our return to Lusaka has delivered another strong - and indeed record - result at a time when global commodity and diamond prices remain volatile and uncertain,” said Gemfields CEO Ian Harebottle.

“Demand for - and prices of - emeralds clearly remain as robust as ever and gemstone mining represents one of the healthier segments of the sector.

“We're delighted that, in collaboration with our partners, the Government of the Republic of Zambia, the Kagem and Kariba operations continue to perform strongly,” he added.

Gemfields’ next auction was expected to take place in May in Jaipur, India, and it was anticipated to be predominantly comprised of lower quality emerald and beryl from the Kagem mine.