Emerald miner (LON:GEM) Gemfields expects to improve production rates in the final quarter of its financial year and going forward.
Gemstone (emerald and beryl) production in the third quarter to March increased to 4.9 million carats from 3.5 million carats in the comparable period a year ago.
The company said: “While the stripping ratio will continue to increase in the near term as areas of overburden and waste are mined, management expects an overall increase in operating efficiencies and performance in the medium to longer term as Kagem is able to mine both waste and ore more efficiently."
Barclays Bank Zambia has agreed a US$9.3 million debt facility which will part-finance the waste removal programme in the Chama section of Gemfields' 75 per cent owned Kagem mine.
Gemfields, which also has ruby and amethyst mines, reduced costs during the period, as unit production cost decreased to US$0.85 per carat from US$1.03 per carat a year earlier and US$0.87 in the preceding three months.
Chief executive Ian Harebottle said demand for coloured gemstones was increasing across all markets.
“Gemfields' healthy cash position has supported the company's decision to actively pursue the development of other assets in its portfolio and to increase the scale of operations at its Kagem mine,” he added.
The company said the US$21.4 million proceeds from its Singapore auction in March had now been received in full.
The next emerald auction, of lower quality rough emerald, takes place in Jaipur, India in June 2012.