Gemfields (LON:GEM) put in a sparkling performance at the end of 2012, setting a new production record for the rainy season at its Kagem emerald mine.
The coloured gemstones specialist, which recently completed the acquisition of the iconic Fabergé brand, said the 75% owned Kagem mine produced 6.6mln carats in the fourth quarter of 2012, a sharp increase on the 3.9mln carats produced in the corresponding period of 2011.
The grade for the quarter improved to 288 carats per tonne from 222 carats the year before, while the unit production costs came down to US$0.66 per carat from US$0.87 per carat a year earlier.
Cash rock handling costs were US$3.43 per tonne in the fourth quarter, as against US$3.21 per tonne the year before.
Unit ore production costs declined to US$189 per tonne from US$193 per tonne.
"Gemfields is very pleased to report another healthy quarter. Gemstone carats produced increased 69% compared to the same quarter last year and, for the half year, we are 65% ahead of where we were last year,” noted Ian Harebottle, chief executive officer of Gemfields.
“When combined with the robust auction results in November, our emerald business remains a solid platform and continues to support our ongoing growth,” he added.
That auction saw the percentage of higher value lots sold (by weight) come in at 98%.
Start-up operations are progressing well at the Mozambican ruby project owned by Montepuez Ruby Mining, in which Gemfields has a 75% interest.
A core team is on site at the ruby mine, and primary stage mining and processing equipment is operational. A semi-mobile ore treatment plant has been designed, fabricated and commissioned to test the characteristics of the ore. Bulk sampling has commenced and has shown encouraging results, the company said.
The company reported that it had cash of US$27.9mln at the end of the year and total debt outstanding of US$7.9mln.