Gemfields has announced the results of its series of five small and sequential emerald auctions held during the period 2 November 2020 – 11 December 2020. The mini-auctions comprised of a selection of grades that are typically offered at Kagem’s auctions of higher quality emeralds.
Selected lots were made available for in-person and private viewings by customers in Tel Aviv, Singapore and Jaipur.
Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields and permitting customers from multiple jurisdictions to participate in a sealed-bid process.
The emeralds were extracted by Kagem Mining Ltd in Zambia (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 auction saw 46 companies placing bids and generating total revenues of USD 10.88 million with an overall average value of USD 59.84 per carat. The auction saw 80% of the offered carats being sold (or 86% of the number of lots offered).
Gemfields’ 36 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 657.4 million in total revenues.
The specific auction mix and exact 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 directly comparable.
Subject to market conditions and Covid-19 developments, it is presently envisaged that two larger auctions – one each of mixed quality rubies and higher quality emeralds – will take place in the first quarter of 2021.
Principal operations at both the Kagem emerald mine and the Montepuez ruby mine have been suspended since March and April 2020 respectively. It is hoped that mining operations will resume by March 2021, subject to market conditions and Covid-19 developments.