Incorporated in Guernsey. Guernsey
registration Number: 47656.
South
African external company registration number
2009/012636/10
Share
code on JSE:GML / AIM:GEM
ISIN: GG00BG0KTL52
| LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Company")
Auction Results - Higher-quality
emeralds
LONDON, 22 NOVEMBER 2024
Gemfields announces the results of
an auction comprised of higher-quality rough emeralds held during
the period 4 - 21 November 2024.
Highlights: November 2024 Higher-Quality Emerald
Auction
·
Total auction revenues of USD 16.1
million
·
43 lots were offered for sale of which 30 were
sold (70%)
·
141,084 carats of 200,460 offered were sold
(70%)
·
Average price of USD 113.96 per carat
·
The 50 auctions of Kagem gemstones held since July
2009 have generated USD 1,068 million in total revenues
Adrian Banks, Gemfields' Managing
Director of Product & Sales, commented:
"While
the top quality lots in this auction saw bidding within touching
distance of our all-time records for emeralds, the overall result
for this auction is very disappointing, driven by fewer and poorer
bids for lesser quality grades.
While the wider luxury and gemstone markets are undeniably
facing challenging times, customer attendance and engagement at the
auction were good, as is evidenced by the strength of bidding for
the top quality lots on offer.
As
reported at the time of our September 2024 commercial-quality
emerald auction, we continue to see emerald market dynamics
considerably disturbed by a competing Zambian emerald producer who
is holding regular auctions (September, October and November, with
the latter commencing today, 22 November 2024, in Dubai and
promoted as the 'largest emerald auction in history') and selling
through their emeralds at what customers are reporting as low
prices. We believe this is a transient market dynamic and does not
reflect a medium- or long-term structural change in supply or
market demand.
Gemfields remains committed to leadership and market
stability. As demonstrated by today's auction, we have taken
proactive steps to support the market by withholding certain lots
that did not achieve satisfactory bidding. We believe this approach
helps foster a more secure and sustainable market for all
stakeholders including our customers."
The auction lots were made available
for private, in-person viewings by customers in Bangkok. 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.
The rough emeralds sold were
extracted 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.
The results of the five most recent
Higher-Quality Kagem auctions are summarised in the table below
(and earlier results are available at www.gemfieldsgroup.com):
|
AUCTION RESULTS (HIGHER
QUALITY)
|
May '22
AUCTION
(5 sequential
mini-auctions)
|
Nov '22
AUCTION (5 sequential
mini-auctions)
|
May-Jun '23 AUCTION (5
sequential mini-auctions)
|
May '24
AUCTION
(5 sequential
mini-auctions)
|
Nov '24
AUCTION (5 sequential
mini-auctions)
|
|
Dates
|
9 - 26 May
2022
|
30 Oct - 17 Nov 2022
|
15 May - 1 Jun 2023
|
13 - 30 May 2024
|
4 - 21 Nov 2024
|
|
Location
|
Bangkok /
Online
|
Bangkok /
Online
|
Bangkok /
Online
|
Bangkok / Online
|
Bangkok
/ Online
|
|
Type
|
Higher
Quality
|
Higher
Quality
|
Higher
Quality
|
Higher
Quality
|
Higher
Quality
|
|
Carats offered
|
277,775
|
426,180
|
264,132
|
240,000
|
200,460
|
|
Carats sold
|
277,775
|
401,180
|
264,132
|
208,990
|
141,084
|
|
No. of companies
placing bids
|
62
|
50
|
69
|
60
|
56
|
|
No. of lots
offered
|
38
|
37
|
35
|
46
|
43
|
|
No. of lots
sold
|
38
|
34
|
35
|
43
|
30
|
|
Percentage of lots
sold
|
100%
|
92%
|
100%
|
93%
|
70%
|
|
Percentage of lots
sold by weight
|
100%
|
94%
|
100%
|
87%
|
70%
|
|
Total sales realised at
auction
|
USD 43.3
million
|
USD 30.8
million
|
USD 43.7
million
|
USD 35.0
million
|
USD 16.1 million
|
|
Average per carat sales value
|
USD
155.90/carat
|
USD
*
76.78/carat
|
USD
165.55/carat
|
USD
167.51/carat
|
USD 113.96/carat
|
* Includes the 37kg 'Kafubu
Cluster', which comprised 44% of the weight offered at the
auction.
The specific auction mix and the
quality of the lots offered at each auction vary in characteristics
such as size, colour and clarity on account of variations in mined
production and market demand. Therefore the results of each auction
are not always directly comparable.
-ENDS-
Further
information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join
our investor mailing list, please contact us on:
ir@gemfields.com
For any
press enquiries, please contact Helena and Albertina:
helena.choudhury@gemfields.com
/ albertina.namburete@gemfields.com
This announcement contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) no. 596/2014 which forms part of domestic UK law
pursuant to the European Union (withdrawal) act 2018
("MAR").
ENQUIRIES
|
GEMFIELDS
|
Sean Gilbertson / David Lovett / Ian
Hughes
ir@gemfields.com
T: +44(0) 20 7518 3400
|
|
SPONSOR (JSE)
|
Investec Bank Limited
|
|
NOMINATED ADVISER
(AIM) & BROKER
|
Panmure Liberum
Scott Mathieson / Kieron Hodgson / Amrit Mahbubani / John
More
T: +44(0)
20 3100 2222
|
|
GEMFIELDS HEAD OFFICE PR,
LONDON
|
Helena Choudhury /
Albertina Namburete
helena.choudhury@gemfields.com
/ albertina.namburete@gemfields.com
|
|
ADDITIONAL INFORMATION ON
GEMFIELDS
|
|
Gemfields is a world-leading
responsible miner and marketer of coloured gemstones. Gemfields is
the operator and 75% owner of both the Kagem emerald mine in Zambia
(believed to be the world's single largest producing emerald mine)
and the Montepuez ruby mine in Mozambique (one of the most
significant recently discovered ruby deposits in the world). In
addition, Gemfields also holds controlling interests in various
other gemstone mining and prospecting licences in Zambia,
Mozambique, Ethiopia and Madagascar.
Gemfields' outright ownership of
Fabergé - an iconic and prestigious brand of exceptional heritage -
enables Gemfields to optimise positioning, perception and consumer
awareness of coloured gemstones through Fabergé designs, advancing
the wider group's "mine and market" vision.
Gemfields has developed a
proprietary grading system and a pioneering auction platform to
provide a consistent supply of coloured gemstones to downstream
markets, a key component of Gemfields' business model that has
played an important role in the growth of the global coloured
gemstone sector.
|
GEMFIELDS
GEMFIELDS.COM
|
INVESTORS |FOUNDATION
INSTAGRAM
| FACEBOOK | X
| YOUTUBE
FABERGÉ
FABERGÉ.COM
| INSTAGRAM
| FACEBOOK
| X |
YOUTUBE
KAGEM
MINING LINKEDIN
MONTEPUEZ
RUBY MINING LINKEDIN
