Gemfields PLC (LON:GEM) achieved revenue of US$19.6 million in the December 6-10 auction held in Johannesburg, a new record for a single auction and exceeding the US$18.7 million generated from the three previous emerald auctions held during the current 2009/10 financial year.
The auction of predominantly higher quality rough emeralds was attended by 32 companies drawn from India, Israel, Germany and the United States. It saw 0.87 million carats placed on offer, with 0.75 million carats being sold.
The emeralds sold at the auction achieved an average of US$26.20 per carat, a price increase of some 180 percent over the US$9.35 achieved at the July 2010 auction in London.
The group noted that coloured gemstone deposits are "pockety" in nature, and that accordingly, the grade and quality of production varies widely from month to month. Gemfields’ flagship Kagem mine in Zambia experienced a period of high quality production which led to significant unit price increases.
In particular, an exceptionally rare and magnificent 720 carat emerald crystal set a new Gemfields record in terms of the achieved value per carat.
Gemfields has now completed five auctions in the past 18 months, realising revenues totalling US$45.8 million.
Gemfields' next auction of predominantly lower quality rough emeralds and beryl is scheduled to take place during March 2011.
“While evidence exists for some resistance to diamond price increases in certain sectors, demand for emeralds has strengthened across all major markets, providing a level of confidence for continued increases in achievable emerald prices throughout 2011,“ the group said in a statement.
Chief executive Ian Harebottle: "This was a highly successful auction indicative of the quality of some of our recent production and strong corroboration for our strategy of bringing a regular and reliable supply of ethically-mined emeralds and beryl, from a responsible source, to the market.
“Moreover, our pioneering and proprietary emerald grading system has set new standards and continues to mitigate pricing risk for our clients. The record auction follows Kagem's recent record quarterly production of 12.8 million carats and underpins our belief that Gemfields is entering into an exceptionally exciting phase of its development.”