REG - Gemfields Group Ltd - Auction Results - Higher-quality emeralds

GemfieldsAnnouncement

22/11/2024 07:00

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RNS Number : 2578N  Gemfields Group Limited  22 November 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 - Higher-quality emeralds

LONDON, 22 NOVEMBER 2024

Gemfields announces the results of an auction comprised of higher-quality
rough emeralds held during the period 4 - 21 November 2024.

Highlights: November 2024 Higher-Quality Emerald Auction

·    Total auction revenues of USD 16.1 million

·    43 lots were offered for sale of which 30 were sold (70%)

·    141,084 carats of 200,460 offered were sold (70%)

·    Average price of USD 113.96 per carat

·    The 50 auctions of Kagem gemstones held since July 2009 have
generated USD 1,068 million in total revenues

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

"While the top quality lots in this auction saw bidding within touching
distance of our all-time records for emeralds, the overall result for this
auction is very disappointing, driven by fewer and poorer bids for lesser
quality grades.

While the wider luxury and gemstone markets are undeniably facing challenging
times, customer attendance and engagement at the auction were good, as is
evidenced by the strength of bidding for the top quality lots on offer.

As reported at the time of our September 2024 commercial-quality emerald
auction, we continue to see emerald market dynamics considerably disturbed by
a competing Zambian emerald producer who is holding regular auctions
(September, October and November, with the latter commencing today, 22
November 2024, in Dubai and promoted as the 'largest emerald auction in
history') and selling through their emeralds at what customers are reporting
as low prices. We believe this is a transient market dynamic and does not
reflect a medium- or long-term structural change in supply or market demand.

Gemfields remains committed to leadership and market stability. As
demonstrated by today's auction, we have taken proactive steps to support the
market by withholding certain lots that did not achieve satisfactory bidding.
We believe this approach helps foster a more secure and sustainable market for
all stakeholders including our customers."

The auction lots were made available for private, in-person viewings by
customers in Bangkok. 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 Higher-Quality Kagem auctions are
summarised in the table below (and earlier results are available at
www.gemfieldsgroup.com (http://www.gemfieldsgroup.com) ):

 AUCTION RESULTS (HIGHER QUALITY)   May '22                        Nov '22 AUCTION    (5 sequential mini-auctions)     May-Jun '23 AUCTION   (5 sequential mini-auctions)    May '24                        Nov '24 AUCTION    (5 sequential mini-auctions)

                                    AUCTION                                                                                                                                  AUCTION

                                    (5 sequential mini-auctions)                                                                                                             (5 sequential mini-auctions)
 Dates                              9 - 26 May                     30 Oct - 17 Nov 2022                                15 May - 1 Jun 2023                                   13 - 30 May 2024               4 - 21 Nov 2024

                                    2022
 Location                           Bangkok / Online               Bangkok / Online                                    Bangkok / Online                                      Bangkok / Online               Bangkok / Online
 Type                               Higher                         Higher                                              Higher                                                Higher                         Higher

                                    Quality                        Quality                                             Quality                                               Quality                        Quality
 Carats offered                     277,775                        426,180                                             264,132                                               240,000                        200,460
 Carats sold                        277,775                        401,180                                             264,132                                               208,990                        141,084
 No. of companies placing bids      62                             50                                                  69                                                    60                             56
 No. of lots offered                38                             37                                                  35                                                    46                             43
 No. of lots sold                   38                             34                                                  35                                                    43                             30
 Percentage of lots sold            100%                           92%                                                 100%                                                  93%                            70%
 Percentage of lots sold by weight  100%                           94%                                                 100%                                                  87%                            70%
 Total sales realised at auction    USD 43.3                       USD 30.8                                            USD 43.7                                              USD 35.0 million               USD 16.1 million

                                    million                        million                                             million
 Average per carat sales value      USD                            USD                                                 USD 165.55/carat                                      USD 167.51/carat               USD 113.96/carat

                                    155.90/carat                   * 76.78/carat

* Includes the 37kg 'Kafubu Cluster', which comprised 44% of the weight
offered at the auction.

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.

 

-ENDS-

 

Further information on Gemfields Group Limited can be found at:

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

 

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

 

For any press enquiries, please contact Helena and Albertina:
helena.choudhury@gemfields.com (mailto:helena.choudhury@gemfields.com) /
albertina.namburete@gemfields.com (mailto:albertina.namburete@gemfields.com)
 

 

 

 

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 / Kieron Hodgson / Amrit Mahbubani / John More
                                   T: +44(0) 20 3100 2222
 GEMFIELDS HEAD OFFICE PR, LONDON  Helena Choudhury / Albertina Namburete

                                   helena.choudhury@gemfields.com (mailto:helena.choudhury@gemfields.com) /
                                   albertina.namburete@gemfields.com (mailto:albertina.namburete@gemfields.com)

 

 

 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/) |
X (https://x.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) | X (https://x.com/OfficialFaberge)
(https://x.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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