19th Jul 2011 07:00
Gemfields plc
("Gemfields" or the "Company")
Results of Singapore Rough Emerald Auction
19 July 2011 Gemfields plc (AIM: "GEM") is pleased to announce the results of the auction of(predominantly higher quality) rough emeralds held in Singapore from 11-15
July2011. Highlights
- Record auction revenues of USD 31.6 million
- A 63% increase in quality-for-quality per carat prices since December 2010
- Seven auctions held since July 2009 have generated revenues totalling USD 87.5
million
- Auction results underscore robust global demand for Gemfields' ethical Zambian
emeralds
- Next auction of (predominantly higher quality) rough emeralds is scheduled for
November 2011
Gemfields held an auction of (predominantly higher quality) rough emeralds inSingapore from 11 to 15 July 2011. Thirty nine companies were invited toattend the auction, with thirty eight of these placing bids for the material onoffer. The auction saw 1.07 million carats mined by Gemfields placed on offer,with 0.74 million carats being sold and generating record auction sales of USD31.6 million. When compared with the higher quality auction held in December 2010, per caratprices showed a 63% increase from USD 26.2 per carat to USD 42.7 per carat.This provides a clear indication of robust growth in both prices and demand foremeralds in general, and Gemfields ethical emeralds in particular.
This was the first auction of the current financial year. The seven auctions held since July 2009 generated USD 87.5 million in aggregate revenues.
Gemfields' next auction of (predominantly higher quality) rough emeralds is scheduled for November 2011. The results of the five higher quality rough emerald auctions held to date are summarised below:
AUCTION RESULTS JULY '09 NOVEMBER '09 JULY '10 DECEMBER '10 JULY '11
(HIGHER QUALITY) AUCTION AUCTION AUCTION AUCTION AUCTION Dates 20-24 Jul 23-27 Nov 19-23 Jul 6-10 Dec 2010 11-15 Jul 2009 2009 2010 2011 Location London, UK Johannesburg, London, UK Johannesburg, Singapore SA SA Type Higher Higher Higher Higher Higher Quality Quality Quality Quality Quality Carats offered 1.36 1.12 million 0.85 0.87 million 1.07 million million million Carats Sold 1.36 1.09 million 0.80 0.75 million 0.74 million million million No. of companies 23 19 37 32 38 placing bids
Average no. of bids per 10 13 18 16
16 lot No. of lots offered 27 19 27 19 25 No. of lots sold 26 14 24 18 18
Percentage of lots sold 96% 74% 89% 95%
72%
Percentage of lots sold 99.8% 97.2% 94.2% 86%
69% by weight
Percentage of lots sold 82% 76% 87% 99%
91% by value Total sales realised at USD 5.9 USD 5.6 USD 7.5 USD 19.6 USD 31.6 auction million million million million million Average per carat sales USD 4.40/ USD 5.10/ USD 9.35/ USD 26.20/ USD 42.71/ value carat carat carat carat carat The Singapore auction was also used as a platform to test the potential levelsof demand for rough emerald and beryl made available from other sources ofsupply (i.e. not certified as having been mined by Gemfields). None of thismaterial is included in the data presented above. The trial comprised of otherrough emerald and beryl from Brazil and also from Zambia. The results of thistrial were not of themselves material and the Company will continue to refineand evolve the opportunities of selling rough emeralds from other sources ofsupply.
The results of the two lower quality rough emerald and beryl auctions held to date are summarised below:
AUCTION RESULTS (LOWER MARCH '10 MARCH '11
QUALITY) AUCTION AUCTION Dates 11-15 March 10-14 March 2010 2011 Location Jaipur, India Jaipur, India Type Lower Quality Lower Quality Carats offered 28.90 million 16.83 million Carats Sold 22.80 million 12.98 million No. of companies 25 44 placing bids Average no. of bids per 8 14 lot No. of lots offered 56 35 No. of lots sold 49 34 Percentage of lots sold 88% 97% Percentage of lots sold 78.9% 77% by weight Percentage of lots sold 89% 99% by value Total sales realised at USD 7.2 USD 9.9 auction million million Average per carat sales USD 0.31 per USD 0.77 per 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.
Ian Harebottle, CEO of Gemfields, commented:
"Gemfields is delighted to announce record sales from its most recent auction.The results are testament to the Company's ongoing focus on marketing to bothconsumers and retailers, and the quality and consistency of the emeraldsproduced at Kagem. Our team and industry partners are working harder than everto deliver on our vision of ensuring that coloured gemstones are recognised andappreciated alongside diamonds and other luxury goods. Gemfields continues todeliver on the promises we've made to our clients, consumers and shareholders".Enquiries:Dev Shetty, CFO [email protected] Plc Tel: +44 (0)20 7518 3402 Tarica Mpinga/Andrew Chubb Tel: +44 (0)20 7050 6500Canaccord Genuity Limited Neil Passmore Tel: +44 (0)20 7155 8630JP Morgan Cazenove Jos Simson/Paul Youens Tel: +44 (0)20 7920 3150 Tavistock Communications
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