5th Nov 2013 12:11
LONDON (Alliance News) - Gemfields PLC Tuesday said that despite lower production at Kagem in Zambia, higher grades have led to positive sales during its third quarter.
The rare coloured gemstones mining company with operations in Zambia and 100% ownership of Faberge Limited said its gemstone production at Kagem fell to 6.5 million carats for the three months ended September 30 from 7.9 million carats the previous year but that the gemstone grade increased to 301 carats per tonne during the period from an average 259 carats per tonne at Kagem.
Gemfields also said it increased production in its Ruby operations at its 75% owned Montepuez Ruby Mining Limitada in Mozambique as it moves towards its expected first ruby auction before June 30 2014.
The company also said that during the period it completed a USD3.5 million direct sale in respect to 11,286 kilograms of Kagem's lowest two grades of Beryl and that its July auction achieved the highest revenues from an auction for the company to date at USD31.5 million based on the higher grades recovered.
Gemfields said its total cash operating cost at Kagem fell to USD6.8 million from USD8.5 million the previous year but its costs increased at Montepuez to USD2 million from 700,000 the previous year as it ramped up production.
The company said that at the end of September 2013, it has net cash of USD18.5 million and a total debt outstanding of USD10.2 million.
Gemfields shares were up 3.8% to 33.25 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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