Gemfields’ Latest Auction Generates Total Revenues of US$10.89 Million

Gemfields announced the results of an auction of predominantly commercial quality rough emerald held in Lusaka, Zambia from 30 July – 2 August 2018. The emeralds were extracted by Kagem Mining Ltd in Zambia (“Kagem”, which is 75% owned by Gemfields and 25% owned by the Industrial Development Corporation of Zambia).
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. 

Highlights – Emerald Auction

• Auction revenues of US$10.89 million
• Of the 21 lots offered, 17 were sold (81%)
• Average price of US$4.21 per carat
• 90% of the carats offered were sold
• The 29 auctions of Kagem gemstones held since July 2009 have generated US$527.5 million in total revenues

The auction saw 22 companies placing bids, generating total revenues of US$10.89 million with an overall average value of US$4.21 per carat. Solid demand resulted in 90% of the offered carats being sold (or 81% of the number of lots offered).Gemfields’ 29 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$527.5million in total revenues. The results of the five most recent commercial quality Kagem auctions are summarised in the table below:

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. Therefore the results of each auction are not always directly comparable. Sean Gilbertson, CEO of Gemfields, commented, “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 repsonsibly 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 comfort from these Lusaka auction results. We thank the every hardworking Gemfields and Kagem teams, our customers and our partners in Kagem, the industrial Development Corporation of Zambia 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.”