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Gemfields auction rakes in a record-breaking R619m

THE proceeds of the auction will be fully repatriated to Kagem in Zambia, with all royalties due to the government of Zambia being paid on the full sales prices achieved at the auction. File photo.

THE proceeds of the auction will be fully repatriated to Kagem in Zambia, with all royalties due to the government of Zambia being paid on the full sales prices achieved at the auction. File photo.

Published Apr 5, 2022

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Gemfields, the supplier of coloured gemstones, said on Monday that its emerald auction held in India recorded its best-ever revenue, an all-time record for any Kagem auction.

The precious metals group said the auction generated a record $42.3m (R619m). The auction, which took place between March 15 and April 1, also resulted in a sales record of $9.37 per carat.

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The ruby and emerald miner, which also owns Fabergé, produces emeralds from the Kagem mine in Zambia, and rubies from the Montepuez mine in Mozambique, with its revenue highly dependent on auction.

“The emeralds were extracted by Kagem Mining Ltd in Zambia, which is 75 percent owned by Gemfields and 25 percent by the Industrial Development Corporation of Zambia,” the group said.

According to the group, the proceeds of the auction will be fully repatriated to Kagem in Zambia, with all royalties due to the government of Zambia being paid on the full sales prices achieved at the auction.

The company said the auction saw 56 companies placing bids. The auction also saw 100 percent of the offered carats and several lots being sold.

Gemfields said it had held 40 auctions of emeralds and beryl mined at Kagem since July 2009, which have generated $792m in total revenues.

Gemfields managing director of product and sales, Adrian Banks, said: “Our most recent auction represents one of the most momentous outcomes I’ve experienced in my 23-year career. We’ve witnessed another breakthrough for Kagem emeralds, with an auction of predominantly commercial quality emeralds setting a new all-time revenue record for Kagem and surpassing even our higher-quality auctions.

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“When we announced Kagem’s August 2021 auction results, we pointed to a step-change in market demand and in the prices bid by our customers, paving the way for an exhilarating cycle in the coloured gemstone sector. Today’s result underscores just how big that step-change is and we’re delighted to see the coloured gemstone industry firing on all cylinders.”

Last month, the company announced that 2021 was a good year as it was able to allocate $20m, or $0.017 apiece, to be distributed as a special dividend for the year ended December 31, 2021.

After declaring the dividend, the miner said the demand in the coloured gemstone market was buoyant.

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The group said 2020 was a challenging year for it as it had to deal with the Covid-19 pandemic which had auctions disrupted and shuttered mines for almost a year.

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Related Topics:

miningCovid-19

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