Zambia/Mozambique – Pallinghurst Resources’ new ruby business Gemfields is delivering massive successes for the company, not only in emeralds but rubies as well. It hopes to break into the sapphire market as well.
The company realised revenues of US$77 million for the financial year to December 2014 from its first two auctions, setting records for both per carat prices and revenues.
“When we initially invested in Gemfields, some may have questioned our vision of developing a small, loss-making producer of emeralds into the “De Beers for Coloured Gemstones,” says Pallinghurst chairman Brian Gilbertson. “So it has been pleasing to see the transformation of Gemfields, first into the world’s largest emerald miner, and more recently into a major producer of rubies.”
“I have every confidence that Gemfields will be able to apply its unique business model to the sapphire properties it is exploring in Sri Lanka.”
Gemfields produces emeralds from its Kagem mine in Zambia and rubies from its Montepuez mine in Mozambique.
Bulk sampling at Montepuez saw markedly increased ruby production during the scaling-up of its operations. The potential of the Montepuez deposit is truly world-class and represents a valuable asset in the Gemfields portfolio,” says chief executive Arne Frandsen.
Through its successful auction system, Gemfields has now positioned itself as the world’s leading supplier of emeralds.
Gemfields also continues to unlock Fabergé’s growth potential with improvements in its financial metrics and the recent unveiling of the Fabergé Pearl Egg, the first egg created in the “Imperial Class” since 1917 while the Fabergé name and Fabergé family have been united.
Gemfields’ strong revenue generation has been reflected in its share price, which increased by 40% during the year. “We anticipate further increases as the ruby operation starts to realise its full potential and Gemfields seeks to replicate its successful business formula to sapphires and beyond,” Frandsen states.