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

GemfieldsAnnouncement

16/09/2024 07:00

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RNS Number : 2316E  Gemfields Group Limited  16 September 2024

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, 16 SEPTEMBER 2024

Gemfields announces the results of an auction comprised of commercial-quality
rough emeralds held during the period 27 August - 13 September 2024.

Highlights: September 2024 Commercial-Quality Emerald Auction

·    Total auction revenues of USD 10.8 million

·    46 lots were offered for sale, of which 28 were sold (61%)

·    Average price of USD 4.47 per carat

·    The 49 auctions of Kagem gemstones held since July 2009 have
generated USD 1,052 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.

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

"The luxury-good, diamond and gemstone markets are experiencing distinct
headwinds as conflicts, elections, economic uncertainty in China and broader
economic turbulence take their toll.

Today's overall result is weaker than expected, exacerbated in part by a
competing emerald producer scheduling their own auction to finish in early
September 2024, in the middle of ours, and selling through their emeralds at
what customers reported as low prices.

Gemfields remains committed to acting responsibly by withholding auction lots
when fair market prices are not achieved, as is demonstrated by the lots we
withdrew from our auction which comprised both considerable volume and value.

We hope that market conditions improve as we work towards the auction of
higher-quality emeralds scheduled for November 2024."

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 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 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)  Aug-Sep '24             Mar '24                     Aug-Sep '23 Auction         Mar '23 Auction             Aug-Sep '22 Auction

                                       Auction                 Auction
 Dates                                 27 Aug - 13 Sep 2024    5 - 22 Mar 2024             29 Aug - 15 Sept 2023       6 - 24 Mar 2023             31 Aug - 19 Sept 2022
 Location                              Jaipur, India / Online  Jaipur, India   / Online    Jaipur, India   / Online    Jaipur, India   / Online    Jaipur, India   / Online
 Type                                  Commercial Quality      Commercial Quality          Commercial Quality          Commercial Quality          Commercial Quality
 Carats offered                        3,978,450               4,171,375                   3,392,395                   3,148,710                   3,752,540
 Carats sold                           2,423,550               3,854,950                   3,392,395                   2,974,710                   3,652,540
 No. of companies placing bids         39                      50                          50                          45                          44
 No. of lots offered                   46                      43                          43                          29                          34
 No. of lots sold                      28                      40                          43                          25                          33
 Percentage of lots sold               61%                     93%                         100%                        86%                         97%
 Percentage of lots sold by weight     61%                     92%                         100%                        94%                         97%
 Total sales realised at auction       USD 10.8                USD 17.1 million            USD 25.5                    USD 21.2                    USD 32.9

                                       million                                             million                     million                     million
 Average per carat sales value         USD                     USD 4.45/carat              USD                         USD                         USD

                                       4.47/carat                                          7.51/carat                  7.13/carat                  9.01/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    Panmure Liberum

(AIM) & BROKER
Scott Mathieson / John More / Anake Singh
                      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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