Coloured gemstone specialist Gemfields (LON:GEM) generated record revenues from a low quality auction of its emeralds and beryls in Zambia’s capital, Lusaka.
The auction, held at the request of the Zambian authorities, saw 6.3mln carats of emerald and beryl sold, generating US$15.2mln in revenues, the most it has ever raised from a lower quality auction. It had put 17.3mln carats on offer.
The average price per carat of the stones taken from the Kagem mine in Zambia was US$2.42, down 7% from its last lower quality auction in Jaipur, India, reversing the historic growth pattern for the first time.
The company suggested this could be down to more declined invitations than expected as the difficulty in reaching Lusaka took its toll. 25 of the 31 companies invited to the auction attended.
Chief executive Ian Harebottle said: “Taking into account the prevailing uncertainty surrounding Gemfields’ future ability to freely sell emeralds outside of Zambia, Gemfields is generally satisfied with the results of its Lusaka auction. The results were reasonable but probably not as optimal as they could have been.
“The figures provide further evidence that the general global economic uncertainty has not had a significant impact on demand for medium to better quality emeralds and beryl.”
Earlier this month, the Zambian government unveiled plans to limit the sale of all emeralds mined in the country to auctions held within the country’s borders.
The company’s 12 auctions since July 2009 have raised US$175.7mln in revenues.