17th Feb 2015 09:50
LONDON (Alliance News) - Precious metals miner Gemfields PLC on Tuesday said its emeralds and rubies production rose in its financial second quarter, but said its Faberge jewellery business was hit by the turmoil in Ukraine and Russia.
The company said production of emerald and beryl from the Kagem mine in Zambia for the quarter to the end of December was 5.8 million carats, up from 3.9 million last year. The grade was 190 carats per tonne, slightly weaker than the 224 carats reported a year earlier owing to bulk sampling at the Fibolele and Libwente pits.
Gemfields also posted a rise in production of ruby and corundum from the Montepuez mine in Mozambique, with the volume extracted at 3.4 million carats in the quarter against 2.3 million last year. The grade also dropped year-on-year for rubies, however, to 34 carats per tonne from 64 last year, partially due to processing of some lower grade portions of the washing plant stockpile.
Gemfields also said its Faberge jewellery business struggled in the quarter, hit by a material drop in sales to Ukraine and Russia. The total value of sales orders agreed in the quarter fell 12% year-on-year, the company said.
"We remain upbeat about the growth and development of our sector and look forward to the results of our two forthcoming auctions and the various luxury events scheduled to take place over the next few months," said Gemfields Chief Executive Ian Harebottle.
Gemfields shares were down 0.5% to 48.50 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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