Last checked at 12 Aug 2021 07:00
Incorporated in Guernsey. Guernsey registration Number: 47656.
South African external company registration number 2009/012636/10
Share code on JSE:GML / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Company")
Emerald Auction Results
LONDON, 12 AUGUST 2021
Gemfields is pleased to announce the results of an auction of predominantly commercial quality rough emeralds held from 28 July to 11 August 2021. The emeralds were extracted by Kagem Mining Ltd in Zambia ("Kagem", which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia). The proceeds of this auction will be fully repatriated to Kagem in Zambia, with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.
Highlights - Emerald Auction
· Auction revenues of USD 23.1 million, a new all-time record for commercial quality emerald auctions
· Of the 32 lots offered, 31 were sold (97%)
· Average price of USD 6.61 per carat, a new all-time record for commercial quality emerald auctions
· 97% of the carats offered were sold
· The 38 auctions of Kagem gemstones held since July 2009 have generated USD 712 million in total revenues
The auction saw 49 companies placing bids, generating total revenues of USD 23.1 million with an overall average value of USD 6.61 per carat. The auction saw 97% of the offered carats being sold (and also 97% of the number of lots offered).
Gemfields' 38 auctions of emeralds and beryl mined at Kagem since July 2009 have now generated USD 712 million in total revenues. The results of the five most recent commercial quality Kagem auctions are summarised in the table below (and earlier results are available at www.gemfieldsgroup.com):
AUCTION RESULTS (COMMERCIAL QUALITY) | Jul-Aug '18 AUCTION | Feb '19 AUCTION | Aug '19 AUCTION | Feb '20 AUCTION | Jul-Aug '21 AUCTION |
Dates | 30 Jul - 2 Aug 2018 | 18-20 Feb 2019 | 19-22 Aug 2019 | 18-21 Feb 2020 | 28 Jul - 11 Aug 2021 |
Location | Lusaka, Zambia | Lusaka, Zambia | Lusaka, Zambia | Lusaka, Zambia | Online Auction |
Type | Commercial Quality | Commercial Quality | Commercial Quality | Commercial Quality | Commercial Quality |
Carats offered | 2.89 million | 4.15 million | 10.68 million (*) | 4.49 million | 3.59 million |
Carats sold | 2.59 million | 2.46 million | 3.92 million | 2.86 million | 3.50 million |
No. of companies placing bids | 22 | 24 | 34 | 29 | 49 |
Average no. of bids per lot | 6 | 5 | 6 | 6 | 14 |
No. of lots offered | 21 | 23 | 35 | 25 | 32 |
No. of lots sold | 17 | 16 | 26 | 19 | 31 |
Percentage of lots sold | 81% | 70% | 74% | 76% | 97% |
Percentage of lots sold by weight | 90% | 59% | 37% (*) | 64% | 97% |
Total sales realised at auction | USD 10.9 million | USD 10.8 million | USD 18.6 million | USD 11.5 million | USD 23.1 million |
Average per carat sales value | USD 4.21/carat | USD 4.39/carat | USD 4.75/carat | USD 4.01/carat | USD 6.61/carat |
(*) Unlike the other auctions tabulated above, August 2019 included beryl. The single lot of beryl (of 5 million carats) was unsold.
The specific auction mix and the quality of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of variations in mined production and market demand. Therefore the results of each auction are not always directly comparable.
Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:
"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 (at USD 23.1 million), the highest ever average price per carat achieved (at USD 6.61 per carat) 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".
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, contact us on:companysecretary@gemfields.com
For any press enquiries please contact us on:gemfields@camarco.co.uk
ENQUIRIES
GEMFIELDS | Sean Gilbertson / David Lovett / Mark LawrieT: +44(0) 20 7518 3400 |
SPONSOR (JSE) | Investec Bank Limited |
SEDIBELO SALE PROCESS | Liberum Nehal Patel T: +44(0) 20 3100 2222 |
NOMINATED ADVISER(AIM) & JOINT BROKER | finnCapChristopher Raggett / Tim Redfern / Edward WhileyT: +44(0) 20 7220 0500 |
JOINT BROKER | LiberumScott Mathieson / Kane CollingsT: +44(0) 20 3100 2222 |
FINANCIAL PR/ IR | CamarcoGordon Poole / Nick HennisT: +44(0) 20 3757 4980 |
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields is a world-leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.
Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the wider group's "mine and market" vision.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields' business model and has played an important role in the growth of the global coloured gemstone sector.
GEMFIELDS
GEMFIELDS.COM | INVESTORS |FOUNDATION
INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN