Oct 04, 2016

Gemfields Positive Results from Jaipur Auction of Emerald and Amethyst

Gemfields plc has stated that its recent auction of emerald and amethyst, held at Jaipur from Sept 26-29, 2016 delivered a positive result. Sale of emeralds yielded revenue of US$ 10.7 million and amethyst sales yielded revenue of US$ 0.4 million, the company said.

Goods at the auction were predominantly commercial quality rough emeralds from the Kagem mine in Zambia and higher quality amethyst from the Kariba mine. Gemfields has a 75% interest in Kagem and a 50% interest in Kariba.

A total of 30 companies placed bids.

While 4.05 million carats of emeralds were offered for sale, 3.27 million carats were sold (81%), the Company said, adding that the average realised price of US$ 3.28 per carat was “robust for the specific auction mix offered”.

Similarly, while 13.6 million carats of amethyst were offered for sale, 11.6 million carats were sold (86%), with the average realised price being 3.73 US cents per carat.

The Company's 23 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$ 437 million in total revenues.

Gemfields' next auction is expected to take place in December 2016 in Singapore. The auction will predominantly comprise of mixed quality rough ruby from the Montepuez ruby deposit in Mozambique.

Ian Harebottle, CEO of Gemfields, commented, "With 81% of the gems offered successfully sold, Jaipur has yet again delivered a positive result in support of Gemfields' vision and reflecting the fact that the platform upon which the growth of the coloured gemstone sector is being built remains encouraging. While there is evidence of a softening in demand for some of the lower qualities in some markets, the overall average price per carat achieved was impacted on by this auction not having the benefit of some of the larger-size, higher quality gems that were placed on offer in our May 2016 auction.”