Gemfields concludes auction of emeralds and amethyst in Singapore

Gemfields plc announced results of its auction of predominantly higher quality rough emerald extracted by Kagem Mining Ltd in Zambia and also higher quality amethyst from Kariba Minerals Ltd.

The auction was held in Singapore from 31 August to 4 September 2015.

Kagem is 75 percent owned by Gemfields and 25 percent by the Government of the Republic of Zambia. Gemfields holds a 50 percent interest in Kariba Minerals Ltd and the remainder is held with the Government of the Republic of Zambia.

The revenues from the Emerald auction resulted in USD 34.7 million, with the average realised price being USD 58.42 per carat, the third highest figure on record the company noted. There were 0.60 million carats offered for sale, of which 0.59 million carats were sold. A total of 37 companies placed bids in the first Gemfields auction of the current financial year, marking the return of Zambian emerald auctions to the broader international market.

The Amethyst auction revenues stood at USD 0.44 million with the average realised price at 4.32 US cents per carat (an increase of 144 percent compared to the 1.77 US cents per carat realised in the February 2015 auction). In this sale, of the 11.0 million carats offered for sale, 10.1 million carats were sold. This was the first to be held in Singapore for Gemfields, others being in Jaipur in March 2011 and in Lusaka in February 2015.

Ian Harebottle, CEO of Gemfields, stated: "Our Singapore auction has delivered another very strong result for our Kagem emeralds. Despite severely depressed global commodity prices, well-documented difficulties in the diamond sector and recent volatility across international financial markets, emerald prices remain as robust as ever. The counter-cyclicality often associated with precious gemstones, and their reputation as a store of value in turbulent times, have shone through. In addition it is pleasing to see the prices received for amethyst increase markedly since the last auction in February. I’m delighted that these results underscore the intended vision and trajectory for coloured gemstones, and for Gemfields.”

Proceeds of these auctions will be fully repatriated to Kagem Mining Ltd and Kariba Minerals Ltd in Zambia respectively, and with all royalties due to the Government of the Republic of Zambia being paid on the full sales price achieved at the auction.