Gemfields sold 86% of the total offered!

Emerald mini-auction held during

The 2 November to 11 December 2020 

Gemfields announce the results of its series of five small and sequential emerald auctions held during the period 2 November 2020 – 11 December 2020. 

The mini-auctions comprised of a selection of grades that are typically offered at Kagem’s auctions of higher quality emeralds. Selected lots were made available for in-person and private viewings by customers in Tel Aviv, Singapore and Jaipur. Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields and permitting customers from multiple jurisdictions to participate in a sealed-bid process. 

The emeralds were extracted by Kagem Mining Ltd in Zambia (“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. 

Highlights of the Mini-Auctions are, 1: Aggregated auction revenues of USD 10.88 million, 2: Average price of USD 59.84 per carat, 3: Of the 28 lots offered, 24 were sold (86%). 

4: 80% of the carats offered were sold & 5: The 36 Kagem auctions (with the recent series of 5 mini-auctions treated as one auction) held since July 2009 have generated USD 657.4 million in total revenues. 

The auction saw 46 companies placing bids and generating total revenues of USD 10.88 million with an overall average value of USD 59.84 per carat. 

The auction saw 80% of the offered carats being sold (or 86% of the number of lots offered). Gemfields’ 36 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 657.4 million in total revenues. 

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 directly comparable. 

Gemfields holds sufficient rough gemstone inventory to be able to host one auction of each of (i) mixed quality rubies (ii) higher quality emeralds and (iii) commercial quality emeralds. Subject to market conditions and Covid-19 developments, it is presently envisaged that two larger auctions - one each of mixed quality rubies and higher quality emeralds – will take place in the first quarter of 2021. 

Principal operations at both the Kagem emerald mine and the Montepuez ruby mine have been suspended since March and April 2020 respectively. It is hoped that mining operations will resume by March 2021, subject to market conditions and Covid-19 developments. 

Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented, “The results of the final four in our series of five online mini-auctions very much echoed what we previously announced in respect of the first mini-auction on 10 November 2020. 

Prices remained robust and in a number of instances comfortably exceeded bids received in pre-Covid-19 auctions. The fact that operations at the world’s largest mines for emerald and ruby have been suspended since March and April 2020, and may remain suspended until March 2021, clearly also played a role. 

Total auction revenue in 2020 for the Kagem emerald mine in Zambia therefore stands at USD 22.4 million, a decline of 72% from the USD 79.1 million attained in 2019. We now look forward to hosting one mixed quality ruby auction and one higher quality emerald auction during the first quarter of 2021 and have received very positive feedback from our clients regarding the new BidGemmer online bidding platform, giving us an important additional tool in 2021. I would like to thank the Kagem Mining and Gemfields sales teams for their tremendous efforts and for delivering a positive auction result during these very trying times.”