Gemfields has announced the results of an emerald auction comprising a series of five sequential mini-auctions held during the period 15 March – 17 April 2021. The auction contained a selection of grades that are typically offered at Kagem Mining auctions of higher quality emeralds.
Selected lots were made available for in-person and private viewings by customers in Tel Aviv, Dubai and Jaipur.
Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields and which permitted customers from multiple jurisdictions to participate in a sealed-bid process.
Operations at Kagem were suspended in March 2020 as a result of the Covid-19 pandemic and remained suspended until March 2021 in order to preserve cash during difficult market conditions. It is expected that mining operations at Kagem will ramp back up to full scale by the end of April 2021.
READ MORE ARTICLES ABOUT GEMSTONES
The rough emeralds sold at the auction were all extracted, prior to March 2020, from the mining licence held and operated by Kagem (which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia). The proceeds of this auction will be fully repatriated to Kagem in Zambia, with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.
Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented:
“This was Kagem’s highest auction revenue since March 2016 and we were very pleased to see such strong demand and pricing.
Because operations were suspended at Kagem in March 2020, the world’s largest emerald mine produced no new emeralds for more than a year. Due to the arising supply and demand dynamics, a number of our clients have therefore seen this auction as a vital opportunity to purchase emeralds. Today’s result also means that Kagem has already surpassed the aggregate auction revenues achieved in the whole of 2020, which stood at just USD 22.4 million as a result of the fall-out from the Covid-19 pandemic.
When combined with the ruby auction results announced on 8 April 2021, Gemfields’ aggregate auction revenue for 2021 to date stands at USD 90.3 million, a very satisfactory position from which to approach the rest of the year.
Gemfields is excited to be back in business after the lengthy pause in both mining and sales and – as always – we extend our sincere thanks to our hard-working teams, to our host governments in Mozambique and Zambia, and to our customers for their ongoing support.”