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Gemfields (LON:GEM) said sales from its Kagem Mine in Zambia totalled more than quarter of a billion dollars in the last five years as it revealed bumper results of an auction of lower quality rough emeralds and beryl.
The group, which also owns the famous Faberge luxury brand, raked in US$15.5mln from the sale in the country’s capital Lusaka.
This represented the second-highest haul achieved for these supposedly lesser stones and equated to US$1.34 a carat.
Broker Investec said: “The sales price achieved is close to the 1.50 a carat our analyst assumes for low quality stones and volume is almost what we assume for a year’s worth of this product.
“The key value driver at the Kagem mine is the price achieved for high quality stones that most recently stood at US$59.3carat.
"Low quality emerald sales make up around 20% of the revenue line so are an important added value to the operation.”
Of the 12.1mln carats offered, 11.6mln found buyers; in all 16 auctions have generated US$276mln since 2009.
Chief executive Ian Harebottle was particularly pleased the buyers are flocking to Lusaka with this, its fifth sale in 17 months on home soil.
“The role played by Zambian emeralds in the international market has never been more important and we remain delighted that they are the emerald of choice for so many,” he added.
“We will seek to further expand their reach with our determined marketing initiatives and by seeking a wider client base internationally, including our new audience of rough ruby buying clients."
On Friday an update on progress revealed the first contribution from Gemfields’ Montepuez mine in Mozambique.
The June auction generated revenues of US$33.5mln at an average realised price of US$18.4 per carat.
One more ruby auction is scheduled for this calendar year.
Montepuez produced 200,000 carats of ruby and corundum in the three months to June, compared to 1.1mln carats in the same period a year ago though group said the quality extracted this quarter was significantly higher.
Total cash operating costs were US$3.1 mln (US$2.4mln).
For the year to June, Montepuez produced 6.5mln carats.
Gemfields’ emerald mine at Kagem in Zambia saw production in the latest quarter fall to 6.3mln carats from 8.9mln, but output was higher than the previous two quarters.
Emerald grade was 271 carats per tonne compared to 322 this time last year, while costs rose to US$1.33 per carat from US$1.01.
For the year Kagem produced 20.2mln carats (30mln carats).
Luxury brand Faberge saw lower revenues but higher unit sales and robust margins.
The shares, up 41% in the year to date, marked time in morning trade as they changed hands for 46.5p each.