REG - Gemfields Group Ltd - Auction Results - Commercial Quality Emeralds

GemfieldsAnnouncement

18/09/2023 07:00

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RNS Number : 7254M  Gemfields Group Limited  18 September 2023

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 - Commercial Quality Emeralds

LONDON, 18 SEPTEMBER 2023

Gemfields is pleased to announce the results of an auction comprised of
commercial quality rough emeralds held during the period 29 August - 15
September 2023.

Highlights: August/September 2023 - Commercial Quality Emerald Auction

·    Total auction revenues of USD 25.5 million

·    43 lots were offered for sale, of which all 43 were sold (100%)

·    Average price of USD 7.51 per carat

·    The 46 auctions of Kagem gemstones held since July 2009 have
generated USD 989.4 million in total revenues

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. This most recent auction
offering of commercial quality emeralds contained a higher than usual
proportion of lower value grades.

Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:

"We are very pleased indeed to see yet another set of auction results that
demonstrate that the emerald market remains in excellent shape and wish our
auction partners much success during this important tradeshow season.

Given the generally lower quality and quantity of emerald production at Kagem
in recent months, we announced last week the withdrawal of our auction of
higher quality emeralds originally scheduled for November 2023. Therefore,
this auction of commercial quality emeralds marked the third and final Kagem
auction of 2023, bringing Kagem's total auction revenues for 2023 to USD 90
million. That represents Kagem's third best auction year ever, with 2021
yielding USD 92.3 and 2022 having been an exuberant standout at USD 149
million."

The auction lots were made available for private, in-person viewings by
customers in Jaipur. Following the viewings, the auctions took place via an
online auction platform specifically adapted for Gemfields, 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 commercial-quality Kagem auctions are
summarised in the table below (and earlier results are available at
www.gemfieldsgroup.com (http://www.gemfieldsgroup.com) ):

 AUCTION RESULTS (COMMERCIAL QUALITY)  Jul-Aug '21           Mar-Apr '22             Aug-Sep '22 AUCTION     Mar '23 AUCTION         Aug-Sep '23 AUCTION

                                       AUCTION               AUCTION
 Dates                                 28 Jul - 11 Aug 2021  15 Mar - 1 Apr 2022     31 Aug - 19 Sept 2022   6 - 24 Mar 2023         29 Aug - 15 Sept 2023
 Location                              Online                Jaipur, India / Online  Jaipur, India / Online  Jaipur, India / Online  Jaipur, India / Online

                                       Auction
 Type                                  Commercial Quality    Commercial Quality      Commercial Quality      Commercial Quality      Commercial Quality
 Carats offered                        3.59 million          4.52 million            3.75 million            3.15 million            3.39 million
 Carats sold                           3.50 million          4.52 million            3.65 million            2.97 million            3.39 million
 No. of companies placing bids         49                    56                      44                      45                      50
 No. of lots offered                   32                    32                      34                      29                      43
 No. of lots sold                      31                    32                      33                      25                      43
 Percentage of lots sold               97%                   100%                    97%                     86%                     100%
 Percentage of lots sold by weight     97%                   100%                    97%                     95%                     100%
 Total sales realised at auction       USD 23.1              USD 42.3                USD 32.9                USD 21.2                USD 25.5

                                       million               million                 million                 million                 million
 Average per carat sales value         USD                   USD                     USD                     USD                     USD

                                       6.61/carat            9.37/carat              9.01/carat              7.13/carat              7.51/carat

 

-ENDS-

 

Further information on Gemfields Group Limited can be found at:

 GEMFIELDSGROUP.COM (http://WWW.GEMFIELDSGROUP.COM)

 

To join our investor mailing list, contact us on:
ir@gemfields.com (mailto:ir@gemfields.com)

 

For any press enquiries please contact us on:
gemfields@camarco.co.uk (mailto:gemfields@camarco.co.uk)

 

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 (mailto:ir@gemfields.com)

T:  +44(0) 20 7518 3400
 SPONSOR (JSE)              Investec Bank Limited
 NOMINATED ADVISER          Cavendish Capital Markets Limited

(AIM) & JOINT BROKER      Christopher Raggett / Tim Redfern / Edward Whiley
                            T: +44(0) 20 7220 0500
 JOINT BROKER               Liberum

Scott Mathieson / Kane Collings
                            T: +44(0) 20 3100 2222
 FINANCIAL PR/ IR           Camarco
                            Gordon Poole / Emily Hall

T: +44(0) 20 3757 4980

 

 

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 (https://gemfields.com/) (https://gemfields.com/) | INVESTORS
(https://www.gemfieldsgroup.com/) (https://www.gemfieldsgroup.com/)
|FOUNDATION (https://www.gemfieldsfoundation.org/)

INSTAGRAM (https://www.instagram.com/gemfields/)
(https://www.instagram.com/gemfields/) | FACEBOOK
(https://www.facebook.com/Gemfields/) (https://www.facebook.com/Gemfields/) |
TWITTER (https://twitter.com/GemfieldsLtd?lang=en)
(https://twitter.com/GemfieldsLtd?lang=en) | YOUTUBE
(https://www.youtube.com/channel/UCArCE0JFtakTP-tHq6v0KVg)

 

FABERGÉ

FABERGÉ.COM (https://www.faberge.com/) | INSTAGRAM
(https://www.instagram.com/officialfaberge/)
(https://www.instagram.com/officialfaberge/) | FACEBOOK
(https://www.facebook.com/OfficialFaberge)
(https://www.facebook.com/OfficialFaberge) | TWITTER
(https://twitter.com/OfficialFaberge) (https://twitter.com/OfficialFaberge) |
YOUTUBE (https://www.youtube.com/user/officialfaberge)

 

KAGEM MINING LINKEDIN (https://www.linkedin.com/company/kagem-mining-ltd)

MONTEPUEZ RUBY MINING LINKEDIN
(https://www.linkedin.com/company/montepuez-ruby-mining)

 

 

 

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