Gemfields Kagem Mining raises USD10.89million in 90% subscribed emerald sale

  • Appetite for Zambian emeralds still high
  • Proceeds of sale to be repatriated to Zambia and royalties due to the state to be paid in full

Gemfields Group Limited (GML: JSE) raised USD10.89million in emerald sales in the gemstone auction held in Lusaka on 30 July – 02 August. These emeralds on offer were extracted from Gemfields majority owned Kagem Mining Ltd. Of the 21 lots offered, 17 were sold representing 81%. Average price of per carat was USD4.21 with 90% of carats realised. Kagem has since 2009 held 29 auctions generating over half a billion dollars (USD527.5million).

See below results of the Gemfields auction for Emeralds held in Jaipur (India) and Lusaka (Zambia).

Results of the Gemfields emerald auctions since 2009.

Gemfields emerald sales trajectory graph

Commenting, Sean Gilbertson, CEO of Gemfields, said:

“Given the difficulties experienced by the Indian gemstone sector this year, the strong results from this auction underscore the enduring vigour of consumer demand for responsibly sourced Zambian emeralds and the accelerated recovery that this demand facilitates. While the Indian emerald trade is not out of the woods yet, we take significant comfort from these Lusaka auction results. We thank the very hardworking Gemfields and Kagem teams, our customers and our partners in Kagem, the Industrial Development Corporation of Zambia and look forward to furthering the Zambian emerald sector’s prominence internationally”.

Read also: Kagem auction flops on Indian market uncertainties

Gemfields is a world leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.

Read more: Gemfields in all time high Mozambique ruby sale

The indian gemstone market suffered a USD2billion scam earlier in 2018 that waned confidence of investors and as such proceeds of gemstones have plummeted. However demand for Zambian emeralds (the best in the world) has remained resilient. Emerald auctions have however suffered a USD5million decline to USD10.89million in July 2018 from USD14.5million  in May 2017 following the fraud scam experienced.

The proceeds of this auction will be fully repatriated to Kagem in Zambia, with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.

More articles on emerald sales.