Pallinghurst, the parent company of coloured gemstone producer Gemfields, announced that its auction in Jaipur of commercial quality emerald rough from its Kagem mine in Zambia from February 19 to 22 garnered $10.8 million in revenue.
An average price of $3.05 per carat was achieved, Gemfields said. Of the 21 lots offered, 19, constituting 90 percent of the lots and 95 percent of the carats on offer, were sold. According to the miner, 31 firms placed bids for the goods on offer. The results of this auction brought to $506 million, the total revenues generated by the 27 emerald auctions the company has held since 2009.
CEO Sean Gilbertson commented, “We’re very pleased to see the enduring demand that underpinned the sale of 95 percent of the carats offered. The results support our view that the fundamentals of the coloured gemstone sector remain in good shape despite thinner auction bidding. While the overall average price per carat for this auction appears somewhat lower due to the inclusion of lower quality grades not included in our prior auction, we’re very pleased with the quality-for-quality prices achieved.”
He added, “This auction also sees Kagem pass $500 million of aggregate revenue since Gemfields acquired its 75 percent stake in the mine. We believe this is the first time a coloured gemstone mine has transparently attained this milestone with publicly available data. The Zambian Government’s share of these revenues — in the form of royalties, corporation tax and dividends — exceeds $105 million, or 21 percent.”