17th Mar 2011 07:00
Gemfields Plc
("Gemfields" or the "Company")
Results of Jaipur Rough Emerald and Beryl Auction
17 March 2011
Gemfields Plc (Ticker "GEM") is pleased to announce the results of the auction of (predominantly lower quality) rough emerald and beryl held in Jaipur, India from 10-14 March 2011.
Highlights
- Second highest total auction revenues to date of USD 9.9 million
- A 148% increase in quality-for-quality per carat prices since March 2010
- Total year-to-date revenue from rough emerald auctions now stands at USD 37 million
- Six auctions held since July 2009 have generated revenues totalling USD 55.7 million
- Auction results underscore rising global demand for Gemfields' ethical Zambian emeralds
- Gemfields' next auction of (predominantly higher quality) rough emeralds is scheduled for July 2011
Gemfields held an auction of (predominantly lower quality) rough emeralds in Jaipur, India from 10 to 14 March 2011. Forty eight companies were invited to attend the auction, with forty four of these placing bids for the material on offer. The auction saw 16.83 million carats placed on offer, with 12.98 million carats being sold and generating record lower quality auction sales of USD 9.9 million.
When compared with the lower quality auction held in March 2010, per carat prices showed a 148% increase from USD 0.31 per carat to USD 0.77 per carat. This provides a clear indication of robust growth in both prices and demand for emeralds in general, and Gemfields ethical emeralds in particular, across all regions and all sectors.
The three auctions held in the current financial year have yielded USD 37 million in aggregate revenues, while all six auctions held since July 2009 have generated USD 55.7 million in combined revenue.
The results of the two lower quality rough emerald and beryl auctions held to date are summarised below:
AUCTION RESULTS(LOWER QUALITY) MARCH '10 MARCH `11 AUCTION AUCTION 11-15 MarchDates 2010 10-14 March 2011Location Jaipur, India Jaipur, IndiaType Lower Quality Lower QualityCarats offered 28.90 million 16.83 millionCarats Sold 22.80 million 12.98 millionNo. of companiesplacing bids 25 44Average no. of bidsper lot 8 14No. of lots offered 56 35No. of lots sold 49 34Percentage of lotssold 88% 97%Percentage of lotssold by weight 78.90% 77%Percentage of lotssold by value 89% 99%Total sales realised USD 7.2at auction million USD 9.9 millionAverage per carat USD 0.31 per USD 0.77 persales value carat carat
Note:- a larger volume of material was placed on offer in March 2010 following Gemfields extensive inventory building exercise during 2008 and 2009.
The Jaipur auction was also used as a platform to test the levels of demand for rough amethyst derived from Gemfields' 50% owned Kariba amethyst mine in Zambia. The results of the test were encouraging and Gemfields expects to sell significant quantities of rough amethyst into this market.
Ian Harebottle, CEO of Gemfields, commented:
"Gemfields is naturally very pleased with the results in Jaipur. The overwhelming interest in attending Gemfields' auctions provides sound evidence of an increase in demand for our products across all grades and all markets. Moreover, it is encouraging to see the enthusiasm and positive response of our downstream clients and partners in furthering Gemfields' vision of bringing to market a consistent and reliable supply of rough emeralds from a responsibly and ethically operated source. Our marketing programmes are working for our clients, and they're clearly working for us."
Gemfields' next auction of (predominantly higher quality) rough emeralds is scheduled for July 2011. The results of the four higher quality rough emerald auctions held to date are summarised below:
AUCTION RESULTS JULY `09 NOVEMBER '09 JULY `10 DECEMBER `10
(HIGHER QUALITY) AUCTION AUCTION AUCTION AUCTION
Dates 20-24 July 23-27 November 19-23 July 6-10 December 2009 2009 2010 2010Location London, Johannesburg, London, Johannesburg, England SA England SAType Higher Higher Quality Higher Quality Higher Quality QualityCarats offered 1.36 million 1.12 million 0.85 million 0.87 millionCarats Sold 1.36 million 1.09 million 0.80 million 0.75 millionNo. of companies 23 19 37 32placing bidsAverage no. of bids 10 13 18 16per lotNo. of lots offered 27 19 27 19No. of lots sold 26 14 24 18Percentage of lots 96% 74% 89% 95%soldPercentage of lots 99.8% 97.2% 94.2% 86%sold by weightPercentage of lots 82% 76% 87% 99%sold by valueTotal sales realised USD 5.9 USD 5.6 million USD 7.5 USD 19.6at auction million million millionAverage per carat USD 4.40 per USD 5.10 per USD 9.35 per USD 26.20 persales value carat carat carat caratEnquiries:Dev Shetty, CFO [email protected] Plc Tel: +44 (0)20 7518 3402Tarica Mpinga/Andrew Chubb Tel: +44 (0)20 7050 6500Canaccord Genuity LimitedNeil Passmore Tel: +44 (0)20 7155 8630JP Morgan CazenoveJos Simson/Paul Youens Tel: +44 (0)20 7920 3150Tavistock Communications
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