Emerald Auction Results announced
Gemfields
Sales 72% of the offered carats
earns
revenues of USD 22.4 million
Gemfields
announces the results of an auction of higher quality rough emeralds held in
Singapore from 14-17 May 2019. The emeralds were extracted by Kagem Mining Ltd
in 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
auction saw 45 companies placing bids and generating total revenues of USD 22.4
million with an overall average value of USD 71.85 per carat, an all‐time record for
any Gemfields emerald auction. The auction saw 72% of the offered carats being
sold (or 80% of the number of lots offered).
Gemfields’
32 auctions of emeralds and beryl mined at Kagem since July 2009 have generated
USD 589 million in total revenues. The results of the five most recent higher
quality Kagem auctions are summarised in the table and earlier results are
available the website.
The
specific auction mix and exact 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. Adrian
Banks, Gemfields’ Managing Director of Product & Sales, commented: “As the
results of this auction show, we continue to see encouraging signs of recovery
in the emerald sector.
We
congratulate Chatree Gems of Thailand- one of our firmly established ruby
auction customers ‐
on their participation in their first Gemfields emerald auction.
They won three
lots of fine quality emeralds, including the top lot comprising two exceptional
gems weighing a total of 62 carats, and which set a new record price per carat
for Zambian rough emeralds at a Gemfields auction.
The two gemstones have been
named ‘Green’ and ‘Ice’ in homage to the 1981 movie starring Omar Sharif and
Ryan O’Neal.
The
biggest issue Kagem presently faces is the 15% Zambian export duty imposed on
emeralds since 1 January 2019. When combined with the pre‐existing 6%
mineral royalty tax, Zambian emerald exporters must now pay an effective 21%
turnover tax on their revenues.
By
contrast, the world’s second and third largest emerald exporters, Colombia and
Brazil, levy 2.5% and 2.0% respectively, bringing about a watershed shift in
tactical advantage. While the 15% export duty shuts the door on foreign
investors and new entrants interested in the Zambian emerald sector, the financial
impact is being acutely felt by incumbent producers like Kagem. We continue to
liaise with the key government departments in seeking resolution and remain
hopeful that a solution will be found.”
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