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  Record price per carat achieved at emerald auction in India


October 14, 2013


After suspending plans to hold a sale in Singapore in June, Gemfelds has conducted an auction in Jaipur, India, where it realized gross revenues worth $8.5 million, and an average price of $58 per carat, which is the highest price achieved to date by the company at any auction.

But the emeralds on offer were not sourced directly from the company's 75 percent-owned Kagem mine in Zambia, in which the remaining 25 percent is held by the Zambian government. The goods on sale were obtained on the open market, and therefore were not subject to the Zambian government's directive from April that barred the sale of Kagem materials at auctions held outside of Zambia.

Some 29 lots were on offer at the auction and 17 were sold. These totaled 145,952 carats, or 96 percent of the market value. Forty-two companies attended the auction, and of them 38 placed at least one bid.

"Having offered traded emeralds and beryl alongside Kagem's regular production at our auctions as far back as July 2011, we have now completed our first standalone auction of traded material," said Ian Harebottle, Gemfields' CEO. "The material has been obtained over a period of time from multiple sources, and I'm pleased to say that we have generated a solid profit. This outcome therefore demonstrates the value and capability of the international auction platform we have developed during the last five years and we look forward to expanding our trading activities accordingly."

"Gemfields has believed in and been committed to the benefits of consolidation and formalization within the colored gemstone industry for some time now and we believe that the results achieved at this auction fully support our vision and the advantages derived from being able to deliver gems from various sources to our valued customers in a transparent and well proven framework. Favorable market conditions and particularly strong demand from our customers have again yielded excellent results and record per carat prices," Harebottle said.

Gemfields' next auction next auction will involve production from the Kagem mine, and will take place in the Zambian capital of Lusaka in November.

The company is still lobbying the Zambian government to permit it to include Kagem-sourced emeralds in auctions outside of Zambia. "In a perfect blueprint we would include Zambia on the circuit, but not necessarily to limit it only to Zambia," Harebottle told the Bloomberg News Service. "

At its July sale in Lusaka, Gemfields obtained an average price of $54 per carat.

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