17th Mar 2010 07:00
Gemfields PLC
First rough emerald and beryl auction of 2010
Record breaking low quality emerald and beryl auction in Jaipur, India
17 March 2010
Gemfields PLC ("Gemfields" or "the Company", Ticker "GEM") announces the results of its first rough emerald and beryl auction for 2010, held in Jaipur, India from 11-15 March 2010.
HIGHLIGHTS
* Sales of USD 7.2 million, with 89% (by value) of material sold; * Believed to be a world record in terms of the volume for Zambian emerald and beryl on offer by weight (with 5.78 tonnes material on offer); * Gemfields' largest auction to date in terms of both sales realised and weight sold; * Robust customer participation and product demand highlights strengthening emerald market; * Gemfields marketing initiatives result in Zambian emeralds (from Gemfields' Kagem mine) being worn by Morgan Freeman at Hollywood's Academy Awards in bespoke Nelson Mandela "46664" bracelets.
The Jaipur 2010 auction, orchestrated by Gemfields' Product Director Adrian Banks, saw 28.9 million carats of principally lower quality rough emeralds and beryl being offered in 56 separate lots and which was attended by 25 companies from India. Gemfields sets undisclosed reserve prices for each lot in advance of its auctions where participation is by invitation only.
The results of this auction are summarised below, together with those from the previously published higher quality auctions held in London and Johannesburg:
JULY `09 AUCTION NOVEMBER '09 MARCH '10 AUCTION AUCTION Dates 20-24 July 2009 23-27 November 2009 11-15 March 2010 Location London, England Johannesburg, South Jaipur, India Africa Type High Quality High Quality Low Quality Carats offered 1.36 million 1.12 million 28.9 million No. of companies 23 19 25 placing bids Average no. of bids 10 13 8 per lot No. of lots offered 27 19 56 No. of lots sold 26 14 49 Percentage of lots 96% 74% 88% sold Percentage of lots 99.8% 97.2% 78.9% sold by weight Percentage of lots 82% 76% 89% sold by value Total sales realised USD 5.9 million USD 5.6 million USD 7.2 million at auction Average per carat USD 4.40 per USD 5.10 per carat USD 0.31 per carat sales value carat
Emerald value declines dramatically as quality decreases and achievable prices for rough emerald vary widely from lower-quality to higher-quality material, ranging from USD 0.01 per carat (produced in large volumes) through USD 500 per carat (of which very little material is produced). Lots sold at the Jaipur auction ranged from approximately USD 0.03 per carat to approximately USD 38 per carat.
Gemfields expects to hold its next auction (a high grade auction) in London in June or July 2010.
Ian Harebottle, CEO of Gemfields, commented:
"Gemfields is pleased to have delivered a successful auction at the start of the Indian IPL cricket season, demonstrating that the emerald pipeline from Zambia through to the end consumer is showing a steady increase in demand. Jaipur marked our first low grade auction and the improvement in market sentiment was palpable. We were particularly pleased to further cement our relationships with our various customers, laying the path for Zambian emeralds to take the lead in the supply of ethical gemstones of guaranteed provenance. The popularity of Zambian emeralds was reinforced by the bespoke 46664 Nelson Mandela bracelet worn by Morgan Freeman at last week's Oscars."
ABOUT THE 46664 BRACELETS
Two unique 46664 bracelets featuring spectacular Zambian emeralds by Gemfields were created by UK-based designer Sabine Roemer expressly for Morgan Freeman and Invictus-producer Lori McCreary to wear to this year's Academy Awards in Hollywood. 46664 was Nelson Mandela's prisoner number during his incarceration on Robben Island.
Freeman was nominated for an Academy Award for Best Actor for his portrayal of Nelson Mandela in the movie Invictus. The bracelets will be auctioned later this year for charity (see www.46664.com).
ABOUT THE ZAMBIAN EMERALD MARKET
Two international gemstone shows are held in early March each year, namely the Hong-Kong and Bangkok shows. At the conclusion of these two shows, it was evident that the level of global interest and demand for Zambian emeralds is growing at a steady pace and in line with the end user's appreciation for fine gems of reputable provenance. This trend was clearly seen in the enthusiasm shown by all of the companies who attended Gemfields auction in Jaipur.
ABOUT GEMFIELDS
Gemfields is one of the world's leading coloured gemstone producers and is embedded at the intersection of gemstone exploration, mining and marketing. Gemfields' flagship mine, Kagem, lies in the heart of the breathtaking Zambian landscape, a constant reminder of the miracles of our planet and a perfect fit with the beauty of its emeralds.
Unsurprisingly, natural, untreated gems are at the heart of Gemfields business, whose focus is on the consistent supply of ethically-produced emeralds and which sets new standards for fair-trade, environmental, social and safety practices in this industry. Gemfields' unique mine-to-market capabilities support the guaranteed provenance of every gem through a full disclosure and certification program - the keystone of Gemfields' promise to both the gemstone trade and the consumer.
Enquiries:
Gemfields [email protected]
Dev Shetty, CFO +44 (0)20 7518 3402
Canaccord Adams Limited
Nominated Adviser and Joint Broker to Gemfields
Tarica Mpinga/Andrew Chubb +44 (0)20 7050 6500
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