REG - Gemfields Group Ltd - Auction Results: Higher-Quality Emeralds

GemfieldsAnnouncement

31/05/2024 07:15

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RNS Number : 6176Q  Gemfields Group Limited  31 May 2024

Incorporated in Guernsey. Guernsey registration Number: 47656

South African external company registration number 2009/012636/10

Share code on JSE: GML / AIM: GEM

ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31

("Gemfields" or the "Company")

Auction Results: Higher-Quality Emeralds

LONDON, 31 MAY 2024

 * Total auction revenues of USD 35.0 million

 * 46 lots were offered for sale of which 43 were sold (93%)

 * Average price of USD 167.51 per carat

 * The 48 auctions of Kagem gemstones held since July 2009 have generated USD
1,041 million in total revenues

Adrian Banks, Gemfields’ Managing Director of Product & Sales,
commented:

“We are very pleased to report robust auction results despite slightly
softer market conditions. Today’s result demonstrates that both demand and
willingness to pay premium prices for fine-quality Zambian emeralds remain at
healthy levels. The overall price per carat for the lots sold echoes the
record figure achieved in Kagem’s preceding high quality auction of May
2023. It should however be noted that today’s figure has been skewed by the
fact that two of the unsold lots were among the lower qualities offered at the
auction.

“We now look forward to our forthcoming mixed-quality ruby auction in June
2024 and the next commercial-quality emerald auction in September 2024.”

The auction lots were made available for private, in-person viewings by
customers in Bangkok. Following the viewings, the auctions took place via an
online auction platform specifically adapted for Gemfields and which permitted
customers from multiple jurisdictions to participate in a sealed-bid process.

The rough emeralds sold were extracted by Kagem (which is 75% owned by
Gemfields and 25% by the Industrial Development Corporation of Zambia). The
proceeds of this auction will be fully repatriated to Kagem in Zambia with all
royalties due to the Government of the Republic of Zambia being paid on the
full sales prices achieved at the auction.

The results of the five most recent Higher-Quality Kagem auctions are
summarised in the table below (and earlier results are available at
www.gemfieldsgroup.com (http://www.gemfieldsgroup.com) ):

 AUCTION RESULTS (HIGHER QUALITY)   Nov-Dec '21                         May '22                        Nov '22 AUCTION    (5 sequential mini-auctions)     May-Jun '23 AUCTION   (5 sequential mini-auctions)    May '24

                                    AUCTION                             AUCTION                                                                                                                                  AUCTION

                                    (5 sequential mini-auctions)        (5 sequential mini-auctions)                                                                                                             (5 sequential mini-auctions)
 Dates                              1 Nov -                             9 - 26 May                     30 Oct - 17 Nov 2022                                15 May - 1 Jun 2023                                   13 - 30 May 2024

                                    6 Dec 2021                          2022
 Location                           Various / Online                    Bangkok / Online               Bangkok / Online                                    Bangkok / Online                                      Bangkok / Online
 Type                               Higher                              Higher                         Higher                                              Higher                                                Higher

                                    Quality                             Quality                        Quality                                             Quality                                               Quality
 Carats offered                     250,764                             277,775                        426,180                                             264,132                                               240,000
 Carats sold                        250,764                             277,775                        401,180                                             264,132                                               208,990
 No. of companies placing bids      58                                  62                             50                                                  69                                                    60
 No. of lots offered                32                                  38                             37                                                  35                                                    46
 No. of lots sold                   32                                  38                             34                                                  35                                                    43
 Percentage of lots sold            100%                                100%                           92%                                                 100%                                                  93%
 Percentage of lots sold by weight  100%                                100%                           94%                                                 100%                                                  87%
 Total sales realised at auction    USD 37.8                            USD 43.3                       USD 30.8                                            USD 43.7                                              USD 35.0 million

                                    million                             million                        million                                             million
 Average per carat sales value      USD          150.65/carat           USD                            USD                                                 USD 165.55/carat                                      USD 167.51/carat

                                                                        155.90/carat                   * 76.78/carat

* Includes the 37kg 'Kafubu Cluster', which comprised 44% of the weight
offered at the auction.

The specific auction mix and the quality of the lots offered at each auction
vary in characteristics such as size, colour and clarity on account of
variations in mined production and market demand. Therefore the results of
each auction are not always directly comparable.

 

-ENDS-

 

 

 

Further information on Gemfields Group Limited can be found at:

 GEMFIELDSGROUP.COM (http://WWW.GEMFIELDSGROUP.COM)

 

To join our investor mailing list, contact us on:
ir@gemfields.com (mailto:ir@gemfields.com)

 

For any press enquiries please contact us on:
gemfields@camarco.co.uk (mailto:gemfields@camarco.co.uk)

 

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) no. 596/2014 which forms part of domestic UK
law pursuant to the European Union (withdrawal) act 2018 ("MAR").

 

 

 

ENQUIRIES

 

 

 GEMFIELDS            Sean Gilbertson / David Lovett / Ian Hughes

                      ir@gemfields.com (mailto:ir@gemfields.com)

T:  +44(0) 20 7518 3400
 SPONSOR (JSE)        Investec Bank Limited
 NOMINATED ADVISER    Liberum

(AIM) & BROKER
Scott Mathieson / John More / Anake Singh
                      T: +44(0) 20 3100 2222
 FINANCIAL PR/ IR     Camarco
                      Gordon Poole / Emily Hall / Charlie Dingwall

T: +44(0) 20 3757 4980

 

 

 

ADDITIONAL INFORMATION ON GEMFIELDS

 

Gemfields is a world-leading responsible miner and marketer of coloured
gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald
mine in Zambia (believed to be the world’s single largest producing emerald
mine) and the Montepuez ruby mine in Mozambique (one of the most significant
recently discovered ruby deposits in the world). In addition, Gemfields also
holds controlling interests in various other gemstone mining and prospecting
licences in Zambia, Mozambique, Ethiopia and Madagascar.

 

Gemfields’ outright ownership of Fabergé - an iconic and prestigious brand
of exceptional heritage - enables Gemfields to optimise positioning,
perception and consumer awareness of coloured gemstones through Fabergé
designs, advancing the wider group’s “mine and market” vision.

 

Gemfields has developed a proprietary grading system and a pioneering auction
platform to provide a consistent supply of coloured gemstones to downstream
markets, a key component of Gemfields’ business model that has played an
important role in the growth of the global coloured gemstone sector.

 

GEMFIELDS

GEMFIELDS.COM (https://gemfields.com/) (https://gemfields.com/) | INVESTORS
(https://www.gemfieldsgroup.com/) (https://www.gemfieldsgroup.com/)
|FOUNDATION (https://www.gemfieldsfoundation.org/)

INSTAGRAM (https://www.instagram.com/gemfields/)
(https://www.instagram.com/gemfields/) | FACEBOOK
(https://www.facebook.com/Gemfields/) (https://www.facebook.com/Gemfields/) |
TWITTER (https://twitter.com/GemfieldsLtd?lang=en)
(https://twitter.com/GemfieldsLtd?lang=en) | YOUTUBE
(https://www.youtube.com/channel/UCArCE0JFtakTP-tHq6v0KVg)

 

FABERGE

FABERGƒ.COM (https://www.faberge.com/) | INSTAGRAM
(https://www.instagram.com/officialfaberge/)
(https://www.instagram.com/officialfaberge/) | FACEBOOK
(https://www.facebook.com/OfficialFaberge)
(https://www.facebook.com/OfficialFaberge) | TWITTER
(https://twitter.com/OfficialFaberge) (https://twitter.com/OfficialFaberge) |
YOUTUBE (https://www.youtube.com/user/officialfaberge)

 

KAGEM MINING LINKEDIN (https://www.linkedin.com/company/kagem-mining-ltd)

MONTEPUEZ RUBY MINING LINKEDIN
(https://www.linkedin.com/company/montepuez-ruby-mining)

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