Gemfields (LON:GEM) chief executive Ian Harebottle said this morning that the decision to focus primarily on mine development and waste mining during the past year was “well justified”.
His comments were made as the group revealed its quarterly figures for the Kagem emerald mine in Zambia, which showed the group exited the financial year in good health.
Output from the mine grew strongly in the three months to June 30 to 7.3 million carats from 4.9 million in the previous quarter.
And while the grade fell to 181 carats per tonne from 236 carats, so did unit production costs – to 57 cents per carat from 85 cents. Rock handling costs were also down, hitting US$3.5 a tonne versus US$3.7 previously. Unit ore production costs were reduced by 48 per cent to US$104 per tonne.
In June it announced another bumper auction of stones in Jaipur in India, which netted US$9 million, taking the company’s cash balances to US$36.7 million.
Separately, it said the Montepuez ruby mine in Mozambique is on track to commence bulk sampling in the coming quarter.
CEO Harebottle said: "On the back of solid demand for Gemfields' products, pleasing stock levels and healthy cash balances, our decision to focus primarily on mine development and waste mining during the past year is, I believe, well justified.
“Despite some early minor delays and slightly lower than anticipated full year production volumes, the past few quarters have continued to deliver improving production volumes, a trend that is likely to continue in the near term.
“This, together with the progress that has been achieve at our Mozambican ruby mine, provides management with the confidence that the coming year will continue to underpin Gemfields' ambitious growth plans."