Company hosts second sale in Jaipur of higher quality rough stones.
Gemfields has announced the results of its recent rough emerald auction in Jaipur, ending May 2, with gross auction revenues hitting US$13.5 million (£7.95m), a 59% increase on the mining company’s previous emerald auction in September 2013.
The stones sold at the auction were of predominantly higher quality and comprised Zambian and Brazilian emeralds obtained by Gemfields in the open market from various sources.
The company reports that the average realised price was $50 (£30) per carat, and of the 41 lots offered, 21 were sold, representing approximately 86% of the market value.
A total of 40 companies attended and placed bids at the Jaipur auction. However, owing to the mix and quality of the lots offered at the traded auction, Gemfields said that direct comparisons between traded auctions and Kagem-only (Zambian) auctions "cannot be reliably drawn".
Its next auction of mined rough emeralds and beryl is scheduled to take place in Lusaka, Zambia during the second half of calendar 2014. The auction will consits of predominantly lower quality emerald and beryl, and will be made up only of material mined, processed, graded and owned by Kagem.
Gemfields’ first auction of rough rubies and corundum from its 75%-owned Montepuez ruby deposit in Mozambique is scheduled to take place in Singapore in mid June 2014.
Gemfields chief executive Ian Harebottle said of the Jaipur sale: "Gemfields’ second standalone auction of traded rough emeralds, again held in Jaipur, demonstrates considerable growth in our vision of being able to deliver gems from various sources to our valued customers within the framework of our transparent and well proven auctions.
"We’re pleased with the auction revenue of $13.5 million which saw increased bidder numbers as well as significant growth in both the quantity of emeralds offered and sold. Thanks to favourable market conditions and strong demand for higher quality emeralds, we have generated another solid trading profit and it was pleasing to see the contribution made by Brazilian emeralds. We will continue the expansion of our international trading and sourcing activities accordingly."
Harebottle added that Gemfields’ sales during the current financial year of rough emerald and beryl have now reached US$109.9 million (£64.7m).
Gemfields H1 revenue rose from US$27.7 million (£16.5m) in the last six months of 2012 to US$65.7 million (£39.3m) in the latter half of 2013, hailing positive growth for the precious gemstone company that boasts Mila Kunis as its celebrity ambassador.