2018-03-05
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Business Wire


Gemfields Jaipur Emerald Auction Results

Gemfields (8:45PM) 

Business Wire India

Pallinghurst is pleased to announce the results of an auction of predominantly commercial quality rough emerald held by Gemfields Ltd ("Gemfields", which is 100% owned by Pallinghurst) in Jaipur, India from 19 – 22 February 2018. The emeralds were extracted by Kagem Mining Ltd in Zambia ("Kagem", which is 75% owned by Gemfields and 25% by the Government of the Republic 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$10.8 million

Of the 21 lots offered, 19 were sold (90%)

Average price of US$3.05 per carat

95% of the carats offered were sold

The Kagem auctions held since July 2009 have generated US$506 million in total revenue

The auction saw 31 companies placing bids, generating total revenues of US$10.8 million with an overall average value of US$3.05 per carat. Robust demand resulted in 95% of the offered carats being sold (or 90% of the number of lots offered).

Gemfields' 27 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$506 million in total revenues.

The results of the five most recent commercial quality Kagem auctions are summarised in the table below:

AUCTION RESULTS

Nov '15

May '16

Sep '16

May '17

Feb '18

(COMMERCIAL QUALITY)

AUCTION

AUCTION

AUCTION

AUCTION

AUCTION

18-21 Nov

17-20 May

26-29 Sep

15-18 May

19-22 Feb

Dates

2015

2016

2016

2017

2018

Location

Jaipur, India

Jaipur, India

Jaipur, India

Jaipur, India

Jaipur, India

Commercial

Commercial

Commercial

Commercial

Commercial

Type

Quality

Quality

Quality

Quality

Quality

Carats offered

5.07 million

3.67 million

4.05 million

3.10 million

3.73 million

Carats sold

4.45 million

2.78 million

3.27 million

3.10 million

3.55 million

No. of companies placing bids

29

26

30

33

31

Average no. of bids per lot

6

7

7

9

5

No. of lots offered

23

18

19

23

21

No. of lots sold

18

14

15

23

19

Percentage of lots sold

78%

78%

79%

100%

90%

Percentage of lots sold by weight

88%

76%

81%

100%

95%

Total sales realised at auction

US$19.2million

US$14.3 million

US$10.7 million

US$14.5 million

US$10.8 million

Average per carat sales value

US$4.32/carat

US$5.15/carat

US$3.28/carat

US$4.68/carat

US$3.05/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 and therefore the results of each auction are not always directly comparable.

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. 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."

Additional information on Gemfields

Gemfields is a world leading supplier of responsibly sourced coloured gemstones. 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 controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.

Gemfields' outright ownership of Fabergé – an iconic and prestigious brand of exceptional heritage – enables Gemfields to optimise the 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 coloured gemstones to downstream markets, a key component of Gemfields' business model and has played an important role in the growth of the global coloured gemstone sector.

Further information on Gemfields and Pallinghurst can be found at www.gemfields.com and www.pallinghurst.com.

Madison PR, Andrea Rebeiro, +91-9167228447
Madison PR, Tripti Pandey, +91-9820678871
andrea.rebeiro@madisonpr.in
tripti.pandey@madisonpr.in

Mumbai, Maharashtra, India

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