Gemfields obtains record prices at two emerald auctions

Zambia-focused miner Gemfields saw record prices for its stones at its two most recent auctions. The predominantly higher quality emeralds sold at an auction between July the 15th and 19th, in Lusaka, Zambia, fetched a record average price of 54 US dollars per carat, for a 26% increase over the previous high paid for each carat in a July 2011 sale carried out in Singapore.In parallel, a further auction of traded rough emeralds (predominantly of higher quality) was held in Jaipur, India, between September 26th and 30th.That auction achieved record prices of 58.00 US dollars per carat, the highest unit value achieved at any Gemfields auction to date, the company highlighted.Gemfields sources emeralds from its 75%-owned Kagem mine, situated in the landlocked African country. Total ore output from Kagem was lower in the first quarter of this fiscal year, coming in at 6.5m carats of emerald and beryl, instead of the 7.9m carats obtained in the same quarter of a year ago.The average grade obtained in Zambia, however, improved to 302 carats per tonne, from 259 last year.Production costs per carat of production decreased on a cash-cost basis to 1.06 US dollars from 1.08 dollars in 2012. Lastly, the outfit's Chief Executive, Ian Harebottle, indicated that the relationship and interaction with the Government of Zambia - who owns 25% of Kagem - remains on a sound footing.Discussions with Zambian authorities as regards the feasibility of marketing emeralds mined in the country abroad, so as to obtain the highest possible price for them, are continuing. The current applicable government directive instructs the firm to auction all stones mined in the country on its own territory. As of 13:13 shares of Gemfields were rising by 3.82% to the 34p mark, giving the firm a market capitalisation of £183.58m. AB Gemfields Grou.