Gemfields’ Emerald Auction Realizes $34.7 Million

(IDEX Online News) – Gemstone miner Gemfields plc latest sale of higher quality emeralds from the Kagen mine in Zambia achieved revenues of $34.7 million. The average realized price was $58.42 per carat, which is the third-highest figure on record.

Of the 0.6 million carats offered for sale, 0.59 million carats were sold (98%), with only one of the 19 lots put up for auction going unsold.

The auction also included higher quality amethyst from Kariba Minerals Ltd in which Gemfields has a 50 percent interest, with the balance also belonging to the Government of the Republic of Zambia.

The amethyst auction revenues totaled 0.44 million, with an average per carat price of 4.32 cents. This was an increase of 144 percent compared to the 1.77 cents per carat realized in the February 2015 auction.

The company sold 10.1 million carats of the 11 million carats offered for sale, although five of the 16 lots put up for auction did not find buyers.   

“With 98 percent of the emeralds sold, it is very pleasing indeed to see Zambian emeralds continuing to enjoy such firm demand, aided by our return to running an auction in Singapore,” said CEO Ian Harebottle.  

“Despite severely depressed global commodity prices; well-documented difficulties in the diamond sector and recent volatility across international financial markets, emerald prices remain as robust as ever. The counter-cyclicality often associated with precious gemstones, and their reputation as a store of value in turbulent times, have shone through. In addition, it is pleasing to see the prices received for amethyst increase markedly since the last auction in February.”

Gemfields’ next auction is expected to take place in November and will comprise predominantly of lower quality emerald and beryl.