Gemfields’ latest auction of predominantly commercial-quality rough emerald took place in Jaipur, India between 19-22 February 2018. The auction saw 31 companies placing bids, generating total revenues of US$10.8 million, 95% of the offered carats being sold at an average value of US$3.05 per carat. The proceeds of this auction will be fully repatriated to Gemfields’ Kagem emerald mine 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.
Sean Gilbertson, CEO of Gemfields, commented:
“We’re very pleased to see the enduring demand that underpinned the sale of 95% of the carats offered. The results support our view that the fundamentals of the coloured gemstone sector remain in good shape despite thinner auction bidding, with some customers noting decreased availability of financing for gemstones in India. While the overall average price per carat for this auction appears somewhat lower due to the inclusion of lower quality grades not included in our prior auction, we’re very pleased with the quality-for-quality prices achieved.
This auction also sees Kagem pass US$500 million of aggregate revenue since Gemfields acquired its 75% stake. We believe this is the first time a coloured gemstone mine has transparently attained this milestone with publicly available data. The Zambian Government’s share of these revenues – in the form of royalties, corporation tax and dividends – exceeds US$105 million, or 21%. We congratulate our hard-working team and our partners in Kagem, the Government of the Republic of Zambia”.
In total, Gemfields’ 27 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$506 million in revenue. The specific auction mix and 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.