REG - Gem Resources PLC - First Emerald Sales Successfully Completed

Gem ResourcesAnnouncement

24/04/2025 07:02

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RNS Number : 9039F  Gem Resources PLC  24 April 2025

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Gem Resources Plc

("GEMR" or the "Company")

 

First Emerald Sales Successfully Completed

 

 

Gem Resources Plc (LSE: GEMR) is pleased to announce the successful completion
of its first test sales of emeralds produced from its Gravelotte Emerald Mine,
located in South Africa's Limpopo Province. These initial sales represent a
significant operational milestone for the Company and provide encouraging
indications regarding the geological model, recovery process, and the
potential for future commercial viability. Importantly, the sales have also
provided valuable price point information across different product categories,
which will assist in shaping future marketing and operational strategies.

 

Test Sale Highlights

 

The test sales comprised emeralds produced from the Company's Cobra pit, where
hard rock mining commenced in late January 2025. While production occurred
during February and March, the majority of the mixed-grade material sold was
mined and processed during February 2025, enabling a meaningful assessment of
early-stage performance and market interest.

 

Key results include:

·      8,130 carats of mixed-grade emeralds sold for USD 43,000,
achieving an average realised price of USD 5.29 per carat;

·      819 grams of low-grade material (green beryl) sold for USD 2,000,
establishing a benchmark for by-product material;

·      3,000 grams of emerald-bearing material recovered from historic
tailings sold for USD 12,000, highlighting the potential for incremental
revenue from secondary sources.

 

Whilst the Company is pleased to have achieved its first sale, it notes that
the prices achieved in this test sale are reflective of the current global
uncertainty surrounding U.S. import tariffs on coloured gemstones and the
associated subdued trading environment in key jewellery markets such as China.
Feedback from our own sales process, combined with recent market reports,
indicates that the international gemstone trade has slowed significantly in
light of ongoing tariff and trade uncertainties. The Company believes that
significantly higher prices can be achieved under more normalised market
conditions.

 

 

 

 

Operational Efficiency and Cost Management

 

For the material mined by the Company during February 2025, the all-in mining
and processing cost was approximately USD 50,000, compared to gross revenue of
USD 45,000 (excluding tailings). This result demonstrates that the Company is
moving closer to operational breakeven during its early ramp-up phase-an
encouraging position for a reactivated operation at this stage of development.

 

The Company believes that with increased mining and production volumes with
resulting reduced unit costs, the Gravelotte Emerald Mine has the potential to
become a profitable and global, reliable supplier of high-quality emeralds.

 

Market Conditions and Industry Context

 

The broader coloured gemstone sector is facing a period of adjustment, with:

·      Ongoing uncertainty surrounding potential U.S. import tariffs on
coloured gemstones, contributing to buyer caution and price volatility; and

·      Weakened demand in key Asian markets, particularly China;

 

 

Strategic Focus and Operational Flexibility

 

GEMR is well positioned to navigate the current landscape and is taking active
steps to preserve value and optimise execution, including:

·      A conservation of capital programme targeting reduced
non-essential expenditure;

·      Operational agility afforded by its scale, enabling rapid
adjustment to market conditions;

·      Near-term focus on advancing the Curlew Project, with a view to
achieving production readiness in parallel with anticipated market
improvement. Reactivation costs at Curlew are expected to be low.

 

Outlook

 

The Board remains confident in the long-term fundamentals of the emerald
industry and in GEMR's ability to capitalise on improved economic conditions
as the global gemstone market stabilises.

 

Chairman's Comments - Ed Nealon

 

"Our first test sales totalling $57,000  is an important milestone for GEMR,
confirming the commercial potential of our project, even in such a poor
current market. We agree with our peers that the current market conditions are
short term in nature and a reflection of the current  tarrif and trade
uncertainty and that colour gemstones will continue their medium- to long-term
upward trajectory

 

We are particularly pleased with the results from the hard rock mining
operations, which commenced in late January and have delivered solid recovery
volumes and promising early economics. This is a strong indication of the
potential scalability and quality of our Cobra pit resource.

 

While a portion of the test sale related to material extracted from historical
tailings our operational focus will remain firmly on GEMR's hard rock mining
operations, where we see the strongest commercial potential.

 

We believe that with increased mining and production, coupled with reduced
unit costs and a recovery in the market conditions, the Gravelotte Emerald
Mine can become a profitable and reliable supplier of emeralds to the global
market."

 

 

 

 

Enquiries:

 

 Gem Resources Plc                                                                                                                                           +44 (0)746 368 6497

 Chief Executive Officer

 Bernard Olivier

 Executive Director

 Peter Redmond

 Chief Operating Officer

Jeremy Sturgess-Smith

                                                                                                                                                           info@gemresources.co.uk (mailto:info@gemresources.co.uk)

 Peterhouse Capital Limited                                                                                                                                  +44 (0)20 7469 0930

 Joint Corporate Broker

 Lucy Williams

 Duncan Vasey

 Capital Plus Partners

 Joint Corporate Broker

 Jon                                                                                                                                                         +44 (0)203 821 6169
 Critchley

 

 

About Gem Resources Plc ("GEMR")

 

GEMR is an emerging emerald producer, focusing on the Gravelotte Emerald Mine.
Historically, GEMR is one of the world's largest emerald mines, located in
South Africa. The Company is committed to sustainable and efficient mining
practices, utilizing modern technology to revive this historically significant
emerald mine.  The Company has also acquired the Curlew Emerald Mine in
Australia, further expanding its emerald mining operations and assets.

 

For more information about Gem Resources Plc, including investor relations and
corporate news, please visit our website at www.gemresources.co.uk
(http://www.gemresources.co.uk) . Interested parties are also invited to
sign-up for our newsletter via our website.

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