(Alliance News) - Gemfields Group Ltd on Thursday reported a record revenue achievement from its auction of rough emeralds held from July 28 to August 11.
At the auction, which saw 49 companies place bids, the London-based coloured gemstones supplier said that of the 32 lots offered, 31 were sold at a record average price of USD6.61 per carat, achieving revenue of USD23.1 million.
Shares in Gemfields were up 4.2% at 11.30 pence on Thursday in London, while its Johannesburg shares were 7.0% higher at ZAR2.30.
The proceeds of the auction will be fully returned to Zambia-based Kagem Mining Ltd, a joint venture between Gemfields and the Zambian government, where Gemfields holds a 75% stake.
"Our most recent auction of commercial quality emeralds generated the most fervent bidding activity we've seen in the last decade. Multiple new records were set for this auction category including the highest ever auction revenue, the highest ever average price per carat achieved and the highest number of companies participating in the bidding. We've witnessed a step-change in both market demand and in the prices bid by our clients, paving the way for an exhilarating cycle in the coloured gemstone sector," said Adrian Banks, managing director of Product & Sales.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Gemfields Grou. (GEM)