Gemfields Grou. Share News (GEM)

(Sharecast News) - Gemfields said on Friday that its latest auction of higher-quality emeralds generated $26.8m, with demand described as stable but cautious amid geopolitical and macroeconomic uncertainty.

The AIM-traded coloured gemstones miner said 36 of the 37 lots offered at the auction were sold, representing 97% of lots.

By weight, 183,385 of the 185,135 carats offered were sold, equivalent to 99%.

The auction, held between 4 May and 21 May, achieved an average realised price of $146.08 per carat.

The rough emeralds were extracted from the Kagem mine in Zambia, which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia.

Proceeds would be fully repatriated to Kagem in Zambia, with royalties payable to the Zambian government on the full sales prices achieved.

Private viewings were held in Bangkok, with bidding conducted through Gemfields' online sealed-bid auction platform.

Gemfields said the result compared with $32.0m of revenue at its September 2025 higher-quality emerald auction, when all lots were sold at an average price of $160.78 per carat.

The latest auction also compared with $35.0m in May 2024 and $43.7m in June 2023, although the company noted that auction mixes varied by size, colour and clarity and were not always directly comparable.

Managing director of product and sales Adrian Banks said the auction showed that demand for higher-quality emeralds remained stable, but that the market was exercising caution.

"That said, competition and pricing for the top-tier emeralds remained particularly strong, reflecting the rarity and continued desirability of exceptional gems," he said.

Banks added that the Indian rupee had depreciated by around 10% against the US dollar since Kagem's previous higher-quality auction in September 2025, creating an additional headwind for many customers.

Gemfields also said it had reviewed its ruby auction schedule for the rest of 2026 because of lower-than-expected production at Montepuez Ruby Mining, concerns about liquidity in the ruby market and continued subdued Chinese demand.

The company currently expects to hold a smaller-than-usual June ruby auction of selected grades tailored to prevailing market demand, while retaining flexibility over the size, frequency and timing of ruby auctions for the remainder of the year.

Gemfields said it would provide a further update on the ruby auction schedule and broader outlook after the June auction.

At 0959 BST, shares in Gemfields Group were up 5.88% at 4.5p.

Reporting by Josh White for Sharecast.com.

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