Gemfields' December auction beats past records

Gemfields PLC has generated revenues worth USD 19.6 million from its rough emerald auction held at Johannesburg from 6 to 10 December 2010, an amount which crosses revenues from three emerald auctions it held in the 2009/10 financial year, which totaled USD 18.7 million. The company notes a strengthening demand for emeralds across all major markets, providing a level of confidence for continued increases in achievable emerald prices throughout 2011. While the December auction has set some remarkable records, the previous high was noted in July 2010 worth USD 7.5 million.

The December auction was attended by 32 companies drawn from India, Israel, Germany and the United States. Of the 0.87 million carats placed on offer in December, 0.75 million carats were sold. The auction also achieved a per carat price of USD 26.20 which was around 180 percent over the USD 9.35 per carat price achieved at the July 2010 auction in London.

The mining company attributes this price appraisal to ‘Kagem (Gemfields’ flagship mine in Zambia) experienced a period of high quality production’, and the company’s endeavour to market ethical emeralds to the industry. Ian Harebottle, CEO of Gemfields, said, “This was a highly successful auction indicative of the quality of some of our recent production and strong corroboration for our strategy of bringing a regular and reliable supply of ethically-mined emeralds and beryl, from a responsible source, to the market. There is a clear increase in demand for our ethical Zambian emeralds and while it is a little surprising that some parties are yet to grasp the inherent value in what Gemfields and our distribution partners are able to offer discerning consumers, today’s outstanding sales speak for themselves and demonstrate the progress we have made with our marketing strategies.” He further added, “ Today’s record auction follows Kagem’s recent record quarterly production of 12.8 million carats and underpins our belief that Gemfields is entering into an exceptionally exciting phase of its development.”

In particular, was an exceptionally rare and magnificent 720 carat emerald crystal set a new Gemfields record in terms of the achieved value per carat. The crystal was acquired by renowned father-and-son dealers Raj Kumar and Rishabh Tongya of Precious Jewels Corporation, who have since named it “The Divine Green of Zambia”.