Gemfields clocks USD 33.1 million in emerald auction

Gemfields plc announced having clocked revenues worth USD 33.1 million at its recent emerald auction in Lusaka, Zambia. The auction unfolded from 30 March until 3 April 2016, offering predominantly higher quality rough emerald extracted by Kagem Mining Ltd. Gemfields holds a 75 percent stake in Kagem Mining Ltd and the remainder is held with the Government of the Republic of Zambia. The auction also included higher quality amethyst from Kariba Minerals Ltd. Gemfields has a 50 percent interest in Kariba Minerals Ltd with the balance also belonging to the Government of the Republic of Zambia.

The emerald auction was a success in creating a new record of USD 70.68 per carat for higher quality auctions. Of the 558k carats offered for sale, 469k carats were sold; also 16 of the 18 lots offered being sold, generating auction revenues of USD 33.1 million.. There was a good participation of 33 companies placing bids.

From the auction of amethysts, the company realised revenues worth USD 0.22 million and an average realised price of USD 3.26 per carat. The auction offered 9.4 million carats of higher quality amethyst extracted from Kariba, with 8 of the 14 lots offered being sold.

Ian Harebottle, CEO of Gemfields, said, "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. 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."