Gemfields (LON:GEM) is firing on all cylinders, says broker Numis, which rates the shares a 'buy' and targets 80p a share.
The miner produced 9.9mln carats of emerald and beryl in its third quarter - almost triple the levels of a year ago - with grades rising 79% to an average 355 carats per tonne, and up from 5.8mln carats in the previous three months.
Analyst Phil Swinfen highlighted Q3 production was despite lower ore tones mined, representing a spectacular bounce-back in grades, while the group was on track for top end guidance of 25-30million carats for the year.
He said rubies from the Montepuez mine were also running ahead with 7.7Mcts produced in the year to date against 8 million carats in full year guidance 2015.
Fabergé saw a 64% increase in the value of sales orders.
As reported yesterday, the latest ruby auction in Jaipur was snapped up, generating US$16.1mln in revenue.
The next auction of higher quality rubies in June will give more information on the appetite for the higher value rubies, which the broker believes could be the main profit driver going forward, it added.
Gemfields shares are down 3.52% to 61.75p.