Gemfields (LON:GEM) says it remains on track to deliver a "robust" performance in the current financial year, as it reported "pleasing" production figures.
The firm revealed that gemstone production in the first nine months of the current financial year (to 30 June 2011) stood at 22.2mln carats - compared to 17.4mln carats for the entire 12 months of the previous year.
Carats include both emerald and beryl.
Releasing an an update today for the three months to 31 March 2011, the company said that 3.5 million carats were produced during the quarter compared to 5.9 million carats in the previous quarter.
While total production for the quarter was lower than was achieved during the previous quarter, most of the emeralds produced were of a higher quality (good colour and clarity), and were likely to deliver above average per carat prices when sold at auction, said Gemfields.
It said that production figures in the first six months were "pleasing" and the anticipated rains during the March quarter supported a short term shift in focus to added waste mining and infrastructural development.
Operating costs were adversely affected by the rainy season, higher stripping ratios, and increased infrastructure work, it said.
The firm also made a one-time payment to harmonise the previously complex employee benefit structures into a single system at the Kagem Mine in Zambia - 75 percent owned by Gemfields.
CEO Ian Harebottle said the company was "particularly pleased by the exceptional quality" of our gemstone production this quarter.
"While the rainy season, lower ore yields, added development work and a payment in respect of employee harmonisation resulted in a modest overall production performance, these results are, however, in line with our overall development plans and the fluid deposition characteristic of coloured gemstone mining," he said.
"We remain well on track to deliver a robust performance for the current financial year" - Harebottle
He added that demand for the firm's emeralds and beryl supported, among other things, by the launch of the 'Uniquely You' advertising campaign in the Indian market continued to grow.
"We look forward to the outcome of our rough emerald auction in Singapore in July 2011 and the continued positive impact that supply of this nature will have on our sector," he said.
As at 31 March 2011, Gemfields had US$ 20.6 million in cash and Kagem Mining Ltd, in which Gemfields has a 75 percent interest, was debt free.