2nd May 2014 12:29
LONDON (Alliance News) - Gemfields PLC said Friday that it has seen a "sound" quarter to end March, buoyed by a healthy underlying market for gemstone and ongoing increase in global demand for emeralds and other coloured gemstones.
Its 75% owned Kagem Mining Ltd company in Zambia produced 3.6 million carats of emerald and beryl in the quarter, down from 6.5 million in the previous year. The average grade was 198 carats per tonne, down from 265 in the previous year.
It had total cash operating costs of USD4.9 million, lowered from 6.9 million, and unit production costs of USD1.27 per carat, up from USD0.56 in the previous year.
In February an auction for the higher quality rough emeralds produced revenues of USD36.5 million.
During the quarter Kagem's production was hit by high rainfalls during the period, Gemfields said.
At the 75% owned Montepuez Ruby Mining Limitada in Mozambique the company extracted 1.2 million carats of ruby and corundum, compared to 0.5 million carats in the previous year. Total cash operating costs were USD3.0 million, compared to USD1.2 million in the previous year. A ruby auction is scheduled in Singapore for mid June.
At its wholly owned business Fabergé Ltd, revenue rose 134%, Gemfiels said, it did not provide figures.
Gemfields shares last traded flat at 39.75 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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