Gemfields earns over R600m in record-breaking auction results

100% of the offered carats were sold.
Image: Robert Gessner/Gemfields Plc via Bloomberg

The world’s top gemstone producer Gemfields has generated auction revenue of $42.3 million (around R617 million) after it sold out all 32 lots of its rough emeralds that were up for bid in an auction held in India between March 15 and April 1.

The gemstones which were extracted by Gemfields’ subsidiary, Kagem, saw 56 companies placing bids for all 4.52 million carats on offer with an overall average value of $9.37 per carat, an all-time record for Kagem.

According to Gemfields, its 40 auctions of emeralds and beryl mined at Kagem since July 2009 have now generated $792 million in total revenue.

“We’ve witnessed another breakthrough for Kagem emeralds, with an auction of predominantly commercial quality emeralds setting a new all-time revenue record for Kagem and surpassing even our higher-quality auctions,” Gemfields’ MD of product and sales, Adrian Banks said.

“When we announced Kagem’s August 2021 auction results, we pointed to a step-change in market demand and in the prices bid by our customers, paving the way for an exhilarating cycle in the coloured gemstone sector. Today’s result underscores just how big that step-change is, and we’re delighted to see the coloured gemstone industry firing on all cylinders.”

Gemfields has developed an auction and trading platform to provide a consistent supply of coloured gemstones to downstream markets, a key component of its business model that it says has played an important role in the growth of the global coloured gemstone sector.

Palesa Mofokeng is a Moneyweb intern.

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