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Processing operations at the Kagem emerald mine in Zambia.



  Gemfields reports 57 percent increase in sales during second half of 2011


March 9, 2012


Robust prices helped Gemfields, a gemstone mining company that is listed on London's Alternative Investment Market, increase its revenue from the sales of both rough and polished gemstones by 57 percent to $45.7 million during the first half of its fiscal year, which ended December 31, 2011. Profits for the gem producer rose 42 percent during the period to $22 million.

Because of higher prices and an increased grade at its Kagem emerald mine in Zambia, Gemfields appointed a mining contractor who will to supplement the company's in-house capacities, thus expanding the operation to new areas of ore.

The company also announced that it had completed the acquisition of a controlling interest in a ruby deposit located in the Montepuez district of the Cabo Delgado province, in Mozambique. This was made possible by the Mozambican government formally issuing on February 23 licenses, which will be valid for a period of 25 years, to Montepuez Ruby Mining Limitada, in which Gemfields holds a 75 percent interest.

"This is a particularly exciting development for Gemfields and we are thrilled to add rubies to our emerald and amethyst portfolio," said Gemfield's CEO Ian Harebottle.

"Gemfields enjoyed a financially robust first half with increasing demand, solid financial controls and improving operating efficiencies underpinning gratifying margins. We are excited about the future, given the anticipated increase in production from the Kagem emerald mine, a direct result of our commitment to waste mining over the past half year, and the acquisition of a controlling stake in the foremost Mozambican ruby deposit," Harebottle stated.

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