9th Dec 2009 07:00
Gemfields PLC
Second Rough Emerald Auction of 2009
9 December 2009
Gemfields PLC ("Gemfields" or "the Company", Ticker "GEM") announces the results of its second rough emerald auction for 2009.
Gemfields held its second rough emerald auction for the year between 23 and 27 November 2009. The auction, orchestrated by Gemfields' Product Director Adrian Banks, saw 1.12 million carats of high quality rough emeralds offered in 19 separate lots. Gemfields set undisclosed reserve prices for each lot in advance of the auction which was attended by more than 20 companies from India. Participation in Gemfields' auctions is by invitation only.
Each of the two auctions consisted of high quality rough emeralds falling approximately within the best 7% of Gemfields' production by weight. The results of both auctions are summarised below:
JULY `09 AUCTION NOVEMBER '09 AUCTION Dates 20-24 July 2009 23-27 November 2009 Carats offered 1.36 million 1.12 million No. of companies placing 23 19 bids Average no. of bids per 10 13 lot No. of lots offered 27 19 No. of lots sold 26 14 Percentage of lots sold 96% 74% Percentage of lots sold 99.8% 97.2% by weight Percentage of lots sold 82% 76% by value Total sales realised at USD 5.9 million USD 5.6 million auction Average per carat sales USD 4.40 per carat USD 5.10 per carat value
Emerald value declines dramatically as quality decreases and achievable prices for rough emerald varies 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). Since Gemfields has not yet sold any meaningful quantities of lower quality material, it remains difficult to predict with reasonable accuracy the average per carat revenues that will be derived from Gemfields' overall production profile. Lots in the November auction ranged from approximately USD 1.00 per carat to approximately USD 200.00 per carat.
An auction of lower quality rough emerald and beryl is expected to be held in Jaipur, India, during the first quarter of 2010.
Ian Harebottle, CEO of Gemfields, commented:
"Our November auction demonstrates that Gemfields is delivering on its vision of supplying rough emerald to selected customers on a regular and reliable basis. While the gemstone markets remain relatively weak in the wake of the global financial crisis, it is clear that our marketing and promotional initiatives are working and that the emerald market is gathering momentum. We will continue to work, in conjunction with selected customers, to stimulate demand for emeralds that have followed a transparent and ethical route to market."
Enquiries:
Gemfields plc [email protected]
Richard James, CFO + 44 (0)20 7518 3402
Canaccord Adams Limited
Nominated Adviser and Joint Broker to Gemfields
Mike Jones/Tarica Mpinga/Andrew Chubb +44 (0)20 7050 6500
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