07 Dec 2019
DiamondWorld Directory
Home |
News
Home
Gemfields announces Singapore auction results
The auction saw 48 companies placing bids and generating total revenues of USD 27.2 million with an overall average value of USD 85.26 per carat.
By: Diamond World News Service
|
Nov 27 2019 4:12PM
|
Reference: 24622  

DecreaseIncrease

Gemfields announces the results of an auction of higher quality rough emeralds held in Singapore from 18‐21 November 2019. The emeralds were extracted by Kagem Mining Ltd in Zambia (“Kagem”, which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia). The proceeds of this auction will be fully repatriated to Kagem in Zambia, with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.

 Highlights – Emerald Auction

  • Auction revenues of USD 27.2 million
  • Average price of USD 85.26 per carat, an all‐time record
  • Of the 38 lots offered, 33 were sold (87%)
  • 88% of the carats offered were sold
  • The 34 Kagem auctions held since July 2009 have generated USD 635 million in total revenues

 The auction saw 48 companies placing bids and generating total revenues of USD 27.2 million with an overall average value of USD 85.26 per carat. The auction saw 88% of the offered carats being sold (or 87% of the number of lots offered).

The specific auction mix and 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. Therefore, the results of each auction are not always directly comparable.

 Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented: “Kagem has realised USD 79 million of auction revenues in 2019, the second‐best calendar year performance since the auction system was introduced a decade ago. The recovery being experienced by our auction customers therefore appears to have solid foundations, as is further evidenced by the 48 companies placing bids, a record for any Gemfields emerald auction. While the auction’s overall price‐per‐carat was also a record, each auction has a slightly different composition and should not be directly compared.

 Despite the robust mining and sales performance, the Kagem team’s sterling efforts are unlikely to be rewarded given that the auction revenues of USD 79 million are poised to suffer both 15% export duty and 6% mineral royalty tax, totalling USD 17 million. The 6% mineral royalty tax itself is then again taxed at the corporation tax rate of 30%, as are Kagem’s profits. The effective tax rate is therefore crippling for any business.

 In addition to our stalwart clients from India, we also congratulate Caibaocheng of China and Gemstar of Israel, each of whom won three lots of fine quality Zambian emeralds.”

Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
Search News by City
Recent Issue
2019
AVAILABLE NOW...!
News in Pictures
Videos
Young Diamantaires
Pictures: 16
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 22486
GJEPC Chairman Interview
Views: 20537
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 27728
Promo for IJ Awards 2012 at NDTV Profit
Views: 40655
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 44398
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 17464
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 42535
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 40284
Advertisement
GIA_NEWS
Advertisement
Mohra India
Member of:
Supporter of: