REG - Gemfields Group Ltd - Record Emerald Auction Results

GemfieldsAnnouncement

02/06/2023 07:00

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RNS Number : 4788B  Gemfields Group Limited  02 June 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")

 

Record Emerald Auction Results

LONDON, 2 JUNE 2023

Gemfields is pleased to announce the results of an emerald auction comprised
of higher-quality rough emeralds held during the period 15 May - 1 June 2023.

Highlights: June 2023 Higher-Quality Emerald Auction

·    Total auction revenues of USD 43.7 million, an all-time revenue
record for any Kagem emerald auction

·    35 lots were offered for sale, of which 35 were sold (100%)

·    Average realised price of USD 165.55 per carat, an all-time record
for any Gemfields emerald auction

·    All-time record for price-per-carat paid for a single auction lot

·    The 45 auctions of Kagem gemstones held since July 2009 have
generated USD 964 million in total revenue

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

"Gemfields' second auction of 2023 has yielded a positively surprising
outcome. In our last auction of November 2022, we saw the market normalise
appreciably when compared with the exuberance of the first half of 2022. We
are delighted today to see the market rebound sharply once again, underpinning
the step-change in market pricing which we reported in 2022. This is our 45th
auction of Kagem emeralds since 2009 and to see no fewer than three records
fall (the highest-ever revenue, the highest-ever average price per carat for
an emerald auction and the highest-ever price per carat paid for a single
auction lot) certainly puts the proverbial smile on my dial."

The auction lots were made available in Bangkok for private, in-person
viewings by customers. 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 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
price 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)   Mar-Apr '21                    Nov-Dec '21                         May '22                        Nov '22 AUCTION    (5 sequential mini-auctions)     Jun '23 AUCTION   (5 sequential mini-auctions)

                                    AUCTION                        AUCTION                             AUCTION

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

                                    17 Apr 2021                    6 Dec 2021                          2022
 Location                           Various/ Online                Various / Online                    Bangkok / Online               Bangkok / Online                                    Bangkok / Online
 Type                               Higher                         Higher                              Higher                         Higher                                              Higher

                                    Quality                        Quality                             Quality                        Quality                                             Quality
 Carats offered                     0.273 million                  0.251 million                       0.278 million                  0.426 million                                       0.264 million
 Carats sold                        0.271 million                  0.251 million                       0.278 million                  0.401 million                                       0.264 million
 No. of companies placing bids      59                             58                                  62                             50                                                  69
 Average no. of bids per lot        18                             20                                  17                             11                                                  17
 No. of lots offered                37                             32                                  38                             37                                                  35
 No. of lots sold                   36                             32                                  38                             34                                                  35
 Percentage of lots sold            97%                            100%                                100%                           92%                                                 100%
 Percentage of lots sold by weight  99%                            100%                                100%                           94%                                                 100%
 Total sales realised at auction    USD 31.4                       USD 37.8                            USD 43.3                       USD 30.8                                            USD 43.7

                                    million                        million                             million                        million                                             million
 Average per carat sales value      USD  115.5/carat               USD          150.65/carat           USD                            USD                                                 USD 165.55/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, 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

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

(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
and trading 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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