Gemfields releases Lusaka Emerald Auction Results

Gemfields announces the result of an auction of predominantly commercial quality rough emerald held in Lusaka, Zambia from 18–20 February 2019. 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 10.8 million
• Of the 23 lots offered, 16 were sold (70%)
• Average price of USD 4.39 per carat
• 59% of the carats offered were sold
• The 31 auctions of Kagem gemstones held since July 2009 have generated USD 567 million in total revenues
The auction saw 24 companies placing bids, generating total revenues of USD 10.8 million with an overall average value of USD 4.39 per carat. The auction saw 59% of the offered carats being sold (or 70% of the number of lots offered).
Gemfields’ 31 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 567 million in total revenues. The results of the five most recent commercial quality Kagem auctions are summarised in the table below:

The specific auction mix and the exact 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:
“While the overall revenue and price per carat realised at our most recent auction in Lusaka has remained stable, it is clear that our client base - who hail predominantly from Jaipur in India - are still navigating challenging conditions in their home market. The Indian market is particularly important when it comes to commercial quality emeralds. In addition, it is clear that a fierce shareholder dispute at the principal alternative source of supply of Zambian emeralds, GemCanton, is resulting in Zambian emeralds entering the market at artificially low prices. Given our long-term vision and our understanding of the true value of Zambian emeralds, we have elected to retain auction lots that we believe command higher prices than those presently offered by the market”.