Mar 07, 2018

Gemfields Jaipur Emerald Auction Revenue at US$ 10.8 Million

Announcing the results of the recent auction of predominantly commercial quality rough emerald held by Gemfields at Jaipur, Pallinghurst said that there was “enduring demand” for the gemstone with revenue reaching US$ 10.8 million. The gemstones auctioned were from the Kagem mine in Zambia, which is 75% owned by Gemfields and 25% by the Government of the Republic of Zambia.

The auction, which was held from February 19-22, 2018 at Jaipur, saw  31 companies placing bids. Robust demand resulted in 95% of the offered carats being sold (or 90% of the number of lots offered), Pallinghurst said. The average sale price was US$ 3.05 per carat.

Pallinghurst stated that these results cannot really be compared with earlier auctions as the specific auction mix and the exact quality of the lots offered vary in size, colour and clarity.

With this sale, Gemfields’ 27 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$ 506 million in total revenue.

Sean Gilbertson, CEO of Gemfields, commented, “We’re very pleased to see the enduring demand that underpinned the sale of 95% of the carats offered. The results support our view that the fundamentals of the coloured gemstone sector remain in good shape despite thinner auction bidding. While the overall average price per carat for this auction appears somewhat lower due to the inclusion of lower quality grades not included in our prior auction, we’re very pleased with the quality-for-quality prices achieved.”

He added that the Company believes that this is the first time a coloured gemstone mine has transparently attained the milestone of over US$ 500 million in sales based on publicly available data.

Gemfields reported that the Zambian Government’s share of these revenues – in the form of royalties, corporation tax and dividends – exceeds US$105 million, or 21%.

Pic courtesy: Gemfields