Emeralds from the Kagem mine in Lufwanyama. File
Gemfields said yesterday that despite the lesser quality and quantity of emerald production at Kagem mine in Zambia in recent months, it was pleased to see yet another set of auction results that demonstrated that the emerald market remained in excellent shape.
Gemfields which is the owner of Fabergé, announced the results of an auction comprised of commercial quality rough emeralds held from August 29 to September 15.
The rough emeralds sold were extracted by Kagem, which is 75% owned by Gemfields and 25% 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.
According to the group, the highlights of the commercial quality emerald auction include the total auction revenues of $25.5 million (R486 million). Gemfields said 43 lots were offered for sale, of which all were sold, the average price of $7.51 per carat, and the 46 auctions of Kagem gemstones held since July 2009 had generated $9.894 billion in revenue.
“The specific auction mix and the 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. This most recent auction offering of commercial quality emeralds contained a higher than usual proportion of lower value grades,” it said.
Gemfields managing director of products and sales Adrian Banks said: “We are very pleased indeed to see yet another set of auction results that demonstrate that the emerald market remains in excellent shape and wish our auction partners much success during this important tradeshow season.
“Given the generally lower quality and quantity of emerald production at Kagem in recent months, we announced last week the withdrawal of our auction of higher quality emeralds originally scheduled for November 2023.”
He said this auction of commercial quality emeralds marked the third and final Kagem auction of 2023, bringing Kagem’s total auction revenues for 2023 to $90m.
“That represents Kagem’s third-best auction year ever, with 2021 yielding $92.3m and 2022 having been an exuberant stand-out at $149m,” he said.
Gemfields said the auction lots were made available for private, in-person viewings by customers in Jaipur.
“Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields, which permitted customers from multiple jurisdictions to participate in a sealed-bid process,” it said.
In its trading update last week, the group said its two key operating assets, the Kagem emerald mine in Zambia and the Montepuez Ruby Mine in Mozambique, generated lower interim revenues of $64.6m and $80.4m, respectively, they were down from $85.2m and $95.6m previously.
Gemfields, however, said commercial-quality emerald and mixed-quality ruby auctions saw robust demand for coloured gemstones, alongside June’s higher-quality emerald auction setting a new record for any Kagem auction.
BUSINESS REPORT