Gemfields plc, in its operational update for the three-month period ending 30 September 2015 (Q1 FY 2016),  reported that  production of emerald and beryl from its 75%-owned Kagem mine in Zambia rose to 7.5 million carats from 6.3 million carats produced in the same period of the previous year. The average grade of the production improved to 237 carats per tonne, as compared to 214 carats per tonne in the quarter ending 30 September 2014.

In September 2015 the auction – of predominantly higher quality rough emerald – held in Singapore,  generated revenues of US$ 34.7 million, from 0.59 million carats (representing 88% of the value offered and 98% of the weight offered) that were sold, the Company reported. 

Gemfields' next auction of predominantly lower quality rough emerald and beryl from its Kagem mine is scheduled to take place later this month.

For the same period, production from the 75%-owned Montepuez mine in Mozambique stood at 0.5 million carats of ruby and corundum compared to 2.9 million carats in the quarter ending 30 September 2014.  Gemfields reported a 96% increase in the volume of higher quality rubies recovered.

“Average grade of 7 carats per tonne (versus 41 carats per tonne in the quarter ending 30 September 2014), (is) attributed to a greater proportion of higher quality but lower grade alluvial ore deposit processed during the quarter,” the Company explained.

Gemfields' next auction of predominantly higher quality rubies from its Montepuez deposit is expected to take place in December 2015. 

The September 2015 auction of predominantly higher quality rough amethyst held in Singapore generated revenues of US$ 0.44 million at an average realised price of 4.32 US cents per carat, “the highest ever achieved at any Gemfields' amethyst auction”, the Company reported.

Gemfields’ wholly owned Fabergé Ltd saw some high moments. “Gross profits from sales orders agreed during the quarter ending 30 September 2015 increased by 61% when compared to the quarter ending 30 September 2014,” the Company reported. “The gross profit margin on sales orders agreed increased from 30% to 51% over the same period. The number of items included in sales orders agreed increased by 241% while revenues from sales orders agreed fell by 4% (with the results for the quarter ending 30 September 2014 being skewed by the sale of a single exceptionally high value item).”

Ian Harebottle, CEO of Gemfields, commented: "Our production at Kagem achieved a 19% increase compared to the same period in the prior year, with the bulk sampling operations at Fibolele and Libwente progressing at a steady pace. Mining and bulk sampling operations at Montepuez were focussed on the Mugloto block, where the higher value deposit is spread over a large area, as well as a newly identified area with the potential to produce material of exceptional quality. The combination of these efforts resulted in an overall decrease in grade but is more than supported by a 96% increase in higher quality rubies recovered. We maintain our production target for the 2016 financial year of 25 to 30 million carats for rough emeralds and 8 million carats for rough ruby.”