Gemfields plc reported a significant 12.7% rise in sales, a 7.7% rise in EBITDA and a massive 91% jump in profits after tax during the financial year ended June 30, 2016. The strong performance was driven by record breaking auction results and record breaking prices achieved for its coloured gemstones, the Company said.

During the 12 month period, Gemfields saw its revenue rise to US$ 193.1 million (2015: US$ 171.4 million), EBITDA to US$ 69.4 million (2015: US$ 64.4 million) and Profit after tax to US$ 23.5 million (2015: US$ 12.3 million).

At the 75% owned Kagem mine, production of rough emerald and beryl remained flat at 30.0 million carats (2015: 30.1 million carats) and the average grade, inclusive of ore from bulk sampling pits, realised remained stable at 241 carats per tonne (2015: 242 carats per tonne). Kagem operations yielded revenue of US$ 101.2 million with a record US$ 70.68 per carat price achieved at the auction of higher quality rough.

Production of ruby and corundum at the 75% owned Montepuez project reached 10.3 million carats (2015: 8.4 million carats) with a higher grade of 35 carats per tonne being achieved (2015: 26 carats per tonne). There was a 68% increase in higher quality rough rubies recovered, with revenue reaching US$ 73.1 million, with an average price of US$ 45.50 per carat.

The miner, which is positioned as the world’s leading ethical producer of coloured gemstones, said that its marketing strategies and the new relationships it is forging with manufacturers, jewellers and brands, have helped the Company consolidate its position as an industry leader.

Ian Harebottle, CEO of Gemfields, commented: "Over the past five years, Gemfields revenue has increased 380% and total revenue generated since the Company's first auction in 2008 has reached US$ 717.6 million, an impressive achievement given the challenges faced by the mining and luxury goods industries.”

He added, “Gemfields strategy is to grow production over time from two of its world class deposits, the Kagem emerald mine in Zambia and the Montepuez ruby operation in Mozambique, increasing consumer demand and achieving higher prices for its rough gemstones year on year. The Company continues to see opportunities in new and existing markets for further price escalation.”

The Company said that it is launching its expansion programme which will see higher production at both the Kagem and Montepuez operations over the next three years and also opening new projects including initial drilling in Ethiopia, sapphire trading centres in Sri Lanka and a growing incountry footprint for emeralds in Colombia.

During the current financial year the Company is targeting four emerald and beryl, two high and two commercial quality, auctions and two mixed quality ruby and corundum auctions.