www.gemfields.co.uk
Gemfields is one of the world´s leading coloured gemstone companies. With a strong focus on Zambian emeralds, Gemfields mines, processes and markets both rough and polished gemstones internationally. Gemfields prides itself on its unique ability to bring ethically produced, conflict-free gemstones of certified provenance directly from mine to market on an integrated basis.
In order to support and influence the entire channel from mine to market, Gemfields is in the process of setting up state-of-the-art Cutting and Polishing facilities with cutting-edge technologies and will offer consumers vast quantities of emeralds in calibrated sizes, high precision and special cuts and large collections of Suites, Pairs, matching earring sets. We will also venture into co-branding projects with large, reputed retailers, most notably the company has acquired a worldwide exclusive 15 year licence to use the Fabergé brand name for coloured Gemstones
Gemfields reveals record year for Kagem mine
Gemfields( LON:GEM), the Zambia-focused gemstones miner, hailed record annual production with a jump in grades per tonne and a hefty cut in production costs.
In an operational update for its fourth quarter and full year to June 2011, the company says annual production soared 90 per cent to 33 million carats versus the previous year.
Grade for the year came in at 478 carats per tonne versus 286 in prior year, and per carat production costs were reduced by 41 per cent to US$0.43 per carat.
Rock handling costs for the year, meanwhile, fell 25 percent from US$4.92 to US$3.70 per tonne.
The final quarter of the year alone produced 10.8 million carats at a grade of 500 carats per tonne and a unit cost of US$0.32 per carat.
At its recent July auction of high quality rough emeralds, the company placed 1.07 million carats and successfully sold 0.74 million carats to generate record sales of US$31.6 million.
Compared to its December 2010 auction, average per carat prices at that July 2011 sale improved by 63% from US$ 26.20 per carat to US$ 42.71 per carat.
In all, the company has completed seven auctions in the past two years, generating total revenue of US$87.5 million.
Gemfield's 75 percent owned Kagem mine - the single largest emerald mine in the world- is presently the company’s only operating emerald mine.
Production over the final quarter to 30 June 2011 was “robust” at Kagem, with unit rock handling costs totalling ust US$2.70 per tonne.
Gemfields expects the stripping ratio at Kagem to increase in the short to medium term as areas of overburden are mined in order to expand the levels of available ore. This will have a further positive impact on future total mining costs.
The company also notes, however, that illegal mining activity within the boundaries of the Kagem mining licence is not yet fully resolved. It continues to work with key ministries to alleviate this challenge.
Gemfields cash position at the end of June 2011 stood US$13.6 million in cash, prior to receipt of the US$31.6 million from the most recent auction.
Kagem Mining Ltd, in which Gemfields has a 75 percent interest, is debt free.
Ian Harebottle, chief executive of Gemfields, said: "Continued price increases for rough diamonds are a good indicator of the strength of the luxury goods sector as a whole.
He added: “As a relatively new and informal sector coming off a low base, coloured gemstones in general and emeralds in particular are expected to enjoy even greater scope for increases in demand, which is clearly evident from our recent auction results.
“Gemfields is well positioned to achieve maximum benefit from present trends and feels these key drivers are likely to persist in supporting the popularity of Gemfields' products."
