Extract from rns30 Jan 2013 15:27
Market Update - Quarter to 31 December 2012
30 January 2012
Gemfields plc (AIM: GEM) presents an operational update for the three month period ending 31 December 2012. All figures are approximate, unaudited and, unless otherwise stated, the phrase "carats" includes both emerald and beryl.
Highlights
· Production summary for the Kagem emerald mine:
§ The half year ending 31 December 2012 saw strong production of 14.5 million carats (8.8 million carats in the half year ending 31 December 2011)
§ The quarter ending 31 December 2012 saw the highest production figure (of 6.6 million carats) achieved to date during the rainy season (3.9 million carats in the quarter to 31 December 2011)
§ Grade for the quarter was 288 carats per tonne (222 carats per tonne in the quarter to 31 December 2011)
§ Unit production costs for the quarter of USD 0.66 per carat (USD 0.87 per carat in the quarter to 31 December 2011)
§ Cash rock handling unit costs were USD 3.43 per tonne (USD 3.21 per tonne in the quarter to 31 December 2011)
§ Unit ore production costs were USD 189 per tonne (USD 193 per tonne in the quarter to 31 December 2011)
· Kagem's large-scale and ongoing overburden removal programme to open up new areas for future ore production continues to progress to plan
· At 31 December 2012, Gemfields had cash of USD 27.9 million and total debt outstanding of USD 7.9 million
· Bulk sampling activities are underway at the Montepuez ruby deposit in Mozambique
· Demand for ethical emeralds continues to remain firm across all major markets as is clearly indicated by the per carat prices achieved during the Company's recent higher quality rough emerald auction held in Singapore from 29 October to 2 November 2012.
Ian Harebottle, CEO of Gemfields, commented:
"Gemfields is very pleased to report another healthy quarter. Gemstone carats produced increased 69% compared to the same quarter last year and, for the half year, we are 65% ahead of where we were last year. When combined with the robust auction results in November, our emerald business remains a solid platform and continues to support our ongoing growth. Development of the significant Montepuez ruby mine in Mozambique is progressing well, and we look forward to integrating Fabergé into the Gemfields family and we intend to update the market on the progress made as part of our interim results, which are expected in March 2013."
Sign In
Follow the stocks
