Gem Resources PLC (LSE:GEMR) has reported the successful completion of its first emerald sales from the Gravelotte emerald mine in South Africa, a key milestone for the project.
The London-listed miner sold 8,130 carats of mixed-grade emeralds for $43,000, or $5.29 per carat, alongside additional by-product sales that brought total test sale proceeds to $57,000.
The results, drawn from material mined in February and March at the Cobra pit, offer crucial data for shaping future pricing and marketing strategy. Gem also highlighted potential from historic tailings, selling 3,000 grams of emerald-bearing waste for $12,000.
The company acknowledged that the subdued pricing reflects global headwinds, including US import tariffs on coloured gemstones and weaker demand in China. It believes stronger prices could follow once the international gemstone market stabilises.
Despite headwinds, Gem has edged close to operational breakeven, with mining and processing costs of $50,000 during the period.
Management said this positions the mine well for long-term profitability as scale increases and unit costs fall.
"We believe that with increased mining and production, coupled with reduced unit costs and a recovery in the market conditions, the Gravelotte Emerald Mine can become a profitable and reliable supplier of emeralds to the global market," said CEO Ed Nealon.
Alongside Gravelotte, Gem is advancing its low-cost Curlew project, aiming for production readiness to coincide with a broader recovery in gemstone markets. The company is also conserving capital and maintaining flexibility to respond quickly to shifts in global demand.
It remains upbeat on the sector’s long-term fundamentals and is confident that Gem’s strategic positioning, combined with operational discipline, will support sustainable growth as macroeconomic conditions improve.