Gemfields (LON:GEM) this morning reported strong demand for its emeralds and beryl as it posted record revenues from an auction held in the Indian city of Jaipur last week.
The event generated US$11 million compared with US$9.9 million in March when the company last invited offers for lower quality stones.
It sold 9.8 million carats at an average US$1.12 per carat compared with the 12.98 carats previously at 77 cents a carat.
Five months into the current financial year the group’s revenues are US$42.6 million - that’s US$2.4 million more than the company raked in the whole of last year.
Meanwhile, the eight auctions held since July 2009 have generated US$98.5 million in revenues.
Chief executive Ian Harebottle said: “Our integrated approach combines industry-leading performance in three core areas: mining, consistency of gemstone quality and volumes of supply, and pioneering coloured gemstone marketing and promotion to both consumers and retailers alike.
“With each auction it becomes increasingly clear that our team and our industry partners are making significant progress in delivering on our vision of ensuring that coloured gemstones take their place alongside diamonds and other luxury goods"
The company owns the Kagem Mine in Zambia. Yesterday the group revealed the decision to embark on a significant waste movement programme was reflected in rather subdued production figures.
But it said the initiative will enhance the performance and efficiency of the operation.
As such it is predicting “significantly increased production” in the final two quarters of its financial year.
With around US$32 million in the bank the group is in a financially comfortable position to carry out the work to develop the operation.
An update for the three months ended September 30 revealed production was 4.9 million carats compared with 10.8 million in the previous quarter.
The grade was 205 carats, down from 500 carats and unsurprisingly production costs rose to 79 cents a carat from 32 cents.