News Bureau

Jaipur emerald auction bags US$ 14.5 mn

Gemfields announced the results of its auction of predominantly commercial quality rough emerald extracted by Kagem Mining Ltd, which is 75% owned by Gemfields and 25% by the Government of the Republic of Zambia in Zambia.

The auction, at which no beryl was placed on offer, was held in Jaipur, India from 15 - 18 May 2017 and the proceeds of this auction will be fully repatriated to Kagem Mining Ltd in Zambia, and with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.

This auction was Gemfields' third and final auction of Kagem production in the current financial year. The auction saw 33 companies placing bids and generated total revenues of USD 14.5 million, with a strong overall average value of USD 4.68 per carat, the second highest price achieved for commercial quality emerald auctions.

A significant improvement in the market demand and sentiment resulted in 100% of the offered carats were 3.1 million carats across 23 lots being sold, a first for any Gemfields commercial quality emerald auction. The Company's 25 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 473.5 million in total revenues.

The specific auction mix and the exact quality of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of variations in mined production and market demand. Each auction naturally contains a degree of variation in overall quality composition, which is typically reflected in the average per carat sales value and means that the results of each auction are not always directly comparable.

Ian Harebottle, CEO of Gemfields, commented: "With 100% of the lots sold at near-record pricing, Jaipur has delivered a very positive result indeed. We experienced strong demand for Gemfields' emeralds, with a significant number of new customers wishing to attend the auction.

The primary driver of the healthy appetite we've seen remains the continued increase in global demand for coloured gemstones. This is further supported by an ever-increasing number of discerning customers and high-end brands recognising the inherent value associated with Gemfields' commitment to transparency and sustainability.

As always, we thank our partners in the Zambian Government for their vision and support in building and internationalising the Zambian gemstone sector by promoting transparent and globally-competitive practices".

Gemfields' next auction is expected to take place in June 2017 in Singapore, comprised predominantly of mixed quality rough ruby and corundum from the Montepuez ruby deposit in Mozambique.

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