Gemfields sells 30 of 43 lots in emerald auction
Gemfields Group Limited
9.11p
08:50 25/11/24
Gemfields reported revenues of $16.1m from its latest auction of higher-quality rough emeralds on Friday, held between 4 and 21 November.
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The AIM-traded firm said the sale saw 30 of the 43 lots offered successfully sold, representing 70% of the total.
A total of 141,084 carats, or 70% of the 200,460 carats on offer, were sold at an average price of $113.96 per carat.
The board said the auction contributed to a broader milestone for Gemfields’ Kagem gemstone operations, with its 50 auctions since July 2009 generating cumulative revenues of $1.068bn.
“While the top quality lots in this auction saw bidding within touching distance of our all-time records for emeralds, the overall result for this auction is very disappointing, driven by fewer and poorer bids for lesser quality grades,” said managing director of product and sales Adrian Banks.
“While the wider luxury and gemstone markets are undeniably facing challenging times, customer attendance and engagement at the auction were good, as is evidenced by the strength of bidding for the top quality lots on offer.
“As reported at the time of our September commercial-quality emerald auction, we continue to see emerald market dynamics considerably disturbed by a competing Zambian emerald producer who is holding regular auctions - September, October and November, with the latter commencing today, 22 November 2024, in Dubai and promoted as the 'largest emerald auction in history' -and selling through their emeralds at what customers are reporting as low prices.”
Banks said the company believed it was a “transient market dynamic”, and did not reflect a medium- or long-term structural change in supply or market demand.
“Gemfields remains committed to leadership and market stability. As demonstrated by today's auction, we have taken proactive steps to support the market by withholding certain lots that did not achieve satisfactory bidding.
“We believe this approach helps foster a more secure and sustainable market for all stakeholders including our customers.”
At 1533 GMT, shares in Gemfields Group were down 0.52% at 9.5p.
Reporting by Josh White for Sharecast.com.