Emerald Auction Results

RNS Number : 8901G
Gemfields Group Limited
18 November 2022
 

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, 18 NOVEMBER 2022

Gemfields is pleased to announce the results of an emerald auction comprising a series of 5 sequential mini-auctions held during the period 30 October - 17 November 2022. The auction contained a selection of grades that are typically offered at Kagem Mining Ltd's ("Kagem") auctions of higher quality emeralds. In addition, the auction included a 37kg special interest piece called the "Kafubu Cluster".

The auction lots were made available for in-person and private viewings by customers in Bangkok. Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields, which permitted customers from multiple jurisdictions to participate in a sealed-bid process.

The rough emeralds sold were extracted by 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 - November 2022 Emerald Auction

· Total auction revenues of USD 30.8 million

· 37 lots were offered for sale, of which 34 were sold (92%)

· Average price of USD 76.78 per carat (includes the Kafubu Cluster which comprised 44% of the total weight offered at the auction)

· 94% of the carats offered were sold

· Kagem's 2022 auction revenues have set a new annual record of USD 149.4 million (beating the prior record - set in 2021 - of USD 92.3 million)

· The 43 auctions of Kagem gemstones held since July 2009 have generated USD 899 million in total revenues

· The 37kg Kafubu Cluster, a special interest piece, set a new record as the most expensive single emerald item ever sold by Gemfields

Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:

"Our end-of-year emerald auction has delivered a pleasing and solid result despite a clear softening of both prices and sentiment when compared with the remarkable highs we enjoyed in May 2022. This has been a record-shattering year for Kagem with an amazing USD 149 million in auction sales realised in 2022. We send our thanks and congratulations to the hard-working Kagem team and to Kagem's 25% shareholder, the Government of the Republic of Zambia."

The results of the five most recent higher-quality Kagem auctions are summarised in the table below (and earlier results are available at www.gemfieldsgroup.com ):

AUCTION RESULTS (HIGHER QUALITY)

Nov-Dec '20

AUCTION

(5 sequential mini-

auctions)

Mar-Apr '21

AUCTION

(5 sequential mini-

auctions)

Nov-Dec '21

AUCTION

(5 sequential mini-

auctions)

May '22

AUCTION

(5 sequential mini-

auctions)

Nov '22 AUCTION (5 sequential mini-auctions)

Dates

2 Nov -

11 Dec 2020

15 Mar -

17 Apr 2021

1 Nov -

6 Dec 2021

9-26 May

2022

30 Oct - 17 Nov 2022

Location

Various/ Online

Various/ Online

Various / Online

Bangkok / Online

Bangkok / Online

Type

Higher

Quality

Higher

Quality

Higher

Quality

Higher

Quality

Higher

Quality

Carats

offered

0.23 million

0.273 million

0.251 million

0.278 million

 0.426 million

Carats sold

0.18 million

0.271 million

0.251 million

0.278 million

0.401 million

No. of companies

placing bids

 

47

 

59

 

58

 

62

 

50

Average no. of bids per

lot

 

11

 

18

 

20

 

17

 

11

No. of lots

offered

28

37

32

38

37

No. of lots

sold

24

36

32

38

34

Percentage

of lots sold

86%

97%

100%

100%

92%

Percentage of lots sold

by weight

 

80%

 

99%

 

100%

 

100%

 

94%

Total sales realised at

auction

USD 10.9

million

USD 31.4

million

USD 37.8

million

USD 43.3

million

USD 30.8

million

Average per carat sales

value

USD   59.84 /carat

USD  115.5/carat

USD  150.65/carat

USD

155.90/carat

USD

* 76.78/carat

* Includes the 37kg Kafubu Cluster, which comprised 44% of the weight offered at the auction.

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. For example, the average price per carat for the November 2022 auction was materially reduced by the inclusion of the Kafubu Cluster.

-ENDS-

 

Further information on Gemfields Group Limited can be found at:

  GEMFIELDSGROUP.COM

 

To join our investor mailing list, contact us on:
ir@gemfields.com

 

For any press enquiries please contact us on:
gemfields@camarco.co.uk

 

 

 


ENQUIRIES

 

 

GEMFIELDS

Sean Gilbertson / David Lovett / Ian Hughes

ir@gemfields.com
T:
 +44(0) 20 7518 3400

SPONSOR (JSE)

Investec Bank Limited

NOMINATED ADVISER
(AIM) & JOINT BROKER

finnCap
Christopher Raggett / Tim Redfern / Edward Whiley
T: +44(0) 20 7220 0500

JOINT BROKER

Liberum
Scott Mathieson / Kane Collings
T: +44(0) 20 3100 2222

FINANCIAL PR/ IR

Camarco
Gordon Poole / Emily Hall
T:
+44(0) 20 3757 4980

 

ADDITIONAL INFORMATION ON GEMFIELDS


Gemfields is a world-leading miner of responsible 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 licences 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 through Fabergé designs, 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 that 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

 

 

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