Gemfields achieves USD 19.2 million at 'Jaipur Emerald Auction'

Gemfields has announced the results of its auction of predominantly lower quality rough emerald extracted by Kagem Mining Ltd. in Zambia. The auction was held in Jaipur, India from November 18 to 21, 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 price achieved at the auction.

A total of 29 companies placed bids in Gemfields' second auction of Kagem production in the current financial year. This has been the first auction of predominantly lower quality rough emerald outside Zambia since June 2012.

The auction saw 5.07 million carats of lower quality emerald extracted from Kagem placed on offer, with 18 of the 23 lots offered being sold, generating auction revenues of USD 19.2 million.

The auction realised an overall average value of USD 4.32 per carat, a new record for lower quality auctions. The company's 20 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 379 million in total revenues.

Ian Harebottle, CEO, Gemfields said, "Our return to Jaipur has delivered a knock-out result at a time when global commodity and diamond prices are experiencing well-documented difficulties. Despite the volatility across international financial markets, demand for, and prices of, emeralds, clearly remain as robust as ever."

"The counter-market cyclicality often associated with precious gemstones, and their reputation as a store of value in turbulent times, have once again shone through," Harebottle added.

In addition to the auction of gemstones mined by Gemfields at Kagem, the Jaipur event was also used to host a traded emerald auction of predominantly higher quality emeralds originating from Zambia and Brazil and obtained by Gemfields in the open market from various sources. The traded auction yielded additional gross revenue of USD 1.1 million with 20,400 carats sold.

Positioned at the intersection of mining, marketing, exploration and ethics, Gemfields supports the delivery of a consistent supply of high-quality colored gemstones to jewelers, manufacturers and luxury brands worldwide.

Gemfields acquired Faberge in January 2013, aligning the world's largest colored gemstone producer with one of the most recognizable and iconic heritage brands of all time, to create what can readily be described as a true global colored gemstone champion.