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Company : Gemfields 
Saturday, October 1, 2016 10:27AM IST (4:57AM GMT)
 
Gemfields is Pleased to Announce the Results of the Jaipur Emerald and Amethyst Auctions
Mumbai, Maharashtra, India

Gemfields plc (AIM: GEM) is pleased to announce 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 also included higher quality amethyst from Kariba Minerals Ltd in which Gemfields has a 50% interest, with the balance also belonging to the Government of the Republic of Zambia and with the revenues and royalties being similarly treated.
 
The auction, at which no beryl was placed on offer, was held in Jaipur, India, from 26 - 29 September 2016.
 
Highlights - Emerald Auction
 

  • Auction revenues of USD 10.7 million;
  • A robust USD 3.28 per carat for the specific auction mix offered;
  • Of the 4.05 million carats offered for sale, 3.27 million carats were sold (81%); and
  • 23 Kagem auctions held since July 2009 have generated USD 437 million in total revenues.
 
Highlights: The Amethyst Auction
 
  • Auction revenues of USD 0.4 million;
  • The average realised price was 3.73 US cents per carat; and
  • Of the 13.6 million carats offered for sale, 11.6 million carats were sold (86%).
 
 The Kagem Emerald Auction
 
A total of 30 companies placed bids in Gemfields’ first auction of Kagem production in the current financial year.
 
The auction saw 4.05 million carats of commercial quality emerald extracted from Kagem placed on offer, with 15 of the 19 lots offered being sold, generating auction revenues of USD 10.7 million. The auction realised a pleasing overall average value of USD 3.28 per carat, a robust figure considering the specific quality mix of goods placed on offer at the auction.
 
The Company's 23 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 437 million in total revenues. 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.
 
The results of the five most recent commercial quality Kagem auctions are summarised in the table below. Additional historic information regarding auctions of similar quality goods can be found in the 'Further Information' section of this announcement:
  
AUCTION RESULTS 
(COMMERCIAL QUALITY)
 
AUG '14 AUCTION FEB '15 AUCTION NOV '15 AUCTION MAY '16 AUCTION SEP '16 AUCTION
Dates 5-8 Aug 2014 24-27 Feb 2015 18-21 Nov 2015 17-20 May 2016 26-29 Sep 2016
Location Lusaka, Zambia Lusaka, Zambia Jaipur, India Jaipur, India Jaipur, India
Type Commercial Quality Commercial Quality Commercial Quality Commercial Quality Commercial Quality
Carats offered 12.11 million 10.13 million 5.07 million 3.67 million 4.05 million
Carats Sold 11.58 million 3.90 million 4.45 million  2.78 million  3.27 million
No. of companies placing bids 21 21 29 26 30
Average no. of bids per lot 7 5 6 7 7
No. of lots offered 21 26 23 18 19
No. of lots sold 17 19 18 14 15
Percentage of lots sold 81% 73% 78% 78% 79%
Percentage of lots sold by weight 96% 39% 88% 76% 81%
Percentage of lots sold by value 88% 88% 95% 79% 82%
Total sales realised at auction USD 15.5 million USD 14.5 million USD 19.2 million USD 14.3 million USD 10.7 million
Average per carat sales value USD 1.34/carat USD 3.72/carat USD 4.32/carat USD 5.15/carat USD 3.28/carat
 
 
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.
 
The Kariba Amethyst Auction
 
In addition to the auction of gemstones mined by Gemfields at Kagem, the Jaipur event was also used to host an auction of higher quality amethyst mined by Kariba Minerals Ltd (in which Gemfields has a 50% interest).
 
The auction saw 13.6 million carats of higher quality amethyst extracted from Kariba placed on offer, with 10 of the 14 lots offered being sold, generating auction revenues of USD 0.4 million from the 11.6 million carats sold. The amethyst auction realised an overall average value of 3.73 US cents per carat.
 
Gemfields has hosted only four prior rough amethyst auctions which took place in Jaipur in March 2011, Lusaka in February 2015, Singapore in September 2015 and Lusaka in April 2016.
 
Next Auction
 
Gemfields’ next auction is expected to take place in December 2016 in Singapore. The auction will predominantly comprise of mixed quality rough ruby from the Montepuez ruby deposit in Mozambique.
 
Ian Harebottle, CEO of Gemfields, commented:
 
“With 81% of the gems offered successfully sold, Jaipur has yet again delivered a positive result in support of Gemfields' vision and reflecting the fact that the platform upon which the growth of the coloured gemstone sector is being built remains encouraging. While there is evidence of a softening in demand for some of the lower qualities in some markets, the overall average price per carat achieved was impacted on by this auction not having the benefit of some of the larger-size, higher quality gems that were placed on offer in our May 2016 auction.
 
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.”
 
Notes to Editors:
 
Gemfields plc is the world's leading supplier of responsibly sourced coloured gemstones and is quoted on the AIM division of the London Stock Exchange (ticker: GEM) where it is a constituent of the AIM50 index.
 
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 a 50% interest in the Kariba amethyst mine in Zambia, as well as controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Colombia, Ethiopia, Madagascar and Sri Lanka.
 
Gemfields’ outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the wider group's "mine and market" vision.
 
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of quality coloured gemstones to the global downstream markets. This is a key component of the Company's business model which the Directors believe has played an important role in the appropriate distribution and associated resurgence of the global coloured gemstone sector.
 
www.gemfields.co.uk
 
Further Information:
 
The results of earlier lower quality Kagem auctions are summarised below:
 
  AUCTION RESULTS (COMMERCIAL QUALITY)
Table 1 of 2
MAR '10 AUCTION MAR '11 AUCTION NOV '11
AUCTION
JUN '12
AUCTION
APR '13 AUCTION NOV '13 AUCTION
Dates 11-15 Mar 2010 10-14 Mar 2011 21-25 Nov 2011 9-13 Jun
2012
15-19 Apr 2013 11-15 Nov 2013
Location Jaipur, India Jaipur, India Jaipur, India Jaipur, India Lusaka, Zambia Lusaka, Zambia
Type Commercial Quality Commercial Quality   Commercial Quality Commercial Quality Commercial Quality Commercial Quality
Carats offered* 28.90 million 16.83 million 10.83 million 10.85 million 17.34 million 5.62 million
Carats Sold 22.80 million 12.98 million 9.82 million 3.47 million 6.30 million 4.94 million
No. of companies placing bids 25 44 27 20  
25
 
20
Average no. of bids per lot 8 14 9 3 6 7
No. of lots offered 56 35 26 33 28 21
No. of lots sold 49 34 19 17 23 19
Percentage of lots sold 88% 97% 73% 52% 82% 90%
Percentage of lots sold by weight 79% 77% 91% 32%  
36%
 
88%
Percentage of lots sold by value 89% 99% 80% 60%  
76%
 
91%
Total sales realised at auction USD 7.2 million USD 10.0 million USD 11.0 million USD 9.0 million USD 15.2 million USD 16.4 million
Average per carat sales value USD 0.31/carat USD 0.77/carat USD 1.12/carat USD 2.61/carat USD 2.42/carat USD 3.32/carat
 
 
ABOUT GEMFIELDS
 
Gemfields plc is a leading supplier of responsibly sourced coloured gemstones and is quoted on the AIM division of the London Stock Exchange (ticker: GEM) where it is a constituent of the AIM50 index.
 
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 a 50% interest in the Kariba amethyst mine in Zambia, as well as controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Colombia, Ethiopia, Madagascar and Sri Lanka.
 
Gemfields’ outright ownership of Fabergé an iconic and prestigious brand of exceptional heritage enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the wider group’s “mine and market” vision.
 
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of quality coloured gemstones to the global downstream markets. This is a key component of the Company's business model which the Directors believe has played an important role in the appropriate distribution and associated resurgence of the global coloured gemstone sector.
 
www.gemfields.co.uk

 
For News Release background on Gemfields click here
 
Media Contact Details
Tripti Pandey, Madison PR, tripti.pandey@madisonpr.in
 
 
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