Gemfields PLC (LON:GEM) said it is “very pleased” with the outcome of the auction of predominantly lower quality rough emerald and beryl held in Jaipur, India, from March 10-14 2011.
When compared with the lower quality auction held in March 2010, per carat prices showed a 148 percent increase from US$0.31 per carat to US$0.77 per carat.
“This provides a clear indication of robust growth in both prices and demand for emeralds in general, and Gemfields’ ethical emeralds in particular, across all regions and all sectors,” the company said in a statement.
Of the 48 companies invited to attend the auction, 44 placed bids for the material on offer. The auction saw 16.83 million carats placed on offer, with 12.98 million carats being sold and generating record lower quality auction sales of US$9.9 million.
The three auctions held in the current financial year have yielded US$37 million in aggregate revenues, while all six auctions held since July 2009 have generated US$55.7 million in combined revenue.
The Jaipur auction was also used as a platform to test the levels of demand for rough amethyst derived from Gemfields' 50 percent owned Kariba amethyst mine in Zambia. The results of the test were encouraging and Gemfields expects to sell significant quantities of rough amethyst into this market.
Chief executive Ian Harebottle said: "Gemfields is naturally very pleased with the results in Jaipur. The overwhelming interest in attending Gemfields' auctions provides sound evidence of an increase in demand for our products across all grades and all markets.”
Gemfields' next auction of predominantly higher quality rough emeralds is scheduled for July 2011.
The last of these, held in Johannesburg in early December 2010, achieved revenue of US$19.6 million, 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.
Last week, Gemfields reported an “excellent” set of interim results, as it swung to a pretax profit of US$15.5 million compared with a loss of US$5.8 million a year earlier. Revenues for the six months to end December 2010 from rough and finished emerald sales rose to US$29.05 million from US$12.06 million.
Cash in the bank as at the end of the period under review was US$ 15.51 million, up from US$7.68 million at the previous interim stage.