Gemfields auctions $14.3m rough emerald from Zambia

Gemfields auctions $14.3m rough emerald from Zambia

Natural resources company Gemfields (LSE:GEM) has successfully auctioned its lower quality rough emerald extracted for US$14.3m from its 75 per cent-owned Kagem mine in Zambia.

The auction took place in Jaipur, India and of the 3.67 million carats offered for sale, 2.78 million carats, or 76 per cent were sold.

The average value was found to be $5.15 per carat, a new record for lower quality emerald auctions. In addition, the sale pushed Kagem’s overall revenues up to over $100 million for the year.

All of the auction’s proceeds will be fully recovered to Kagem Mining and all the royalties due to the Government of the Republic of Zambia will be paid on the full sales prices reached at the auction.

Ian Harebottle, Gemfield’s CEO said: “The results from this auction mean that the Kagem mine has exceeded $100 million of declared revenues for the current financial year, and while we are confident that these numbers will be well surpassed in the years to come, we remain grateful for the part that each of our loyal staff members have played in ensuring that Kagem is the first mine to reach anywhere near this milestone in the history of the Zambian gemstone sector.”

Gemfield’s next auction is anticipated to take place in June in Singapore and will be made up of mixed quality rough ruby from the Montepuez deposit in Mozambique.