Gemfields announced the results of its auction in Jaipur, India of predominantly lower quality rough emerald extracted by Kagem Mining Ltd (75% owned by Gemfields and 25% by the Government of the Republic of Zambia) in Zambia. The company states it achieved record auction revenues for lower quality auctions of $19.2 million and set a new record of $4.32 per carat for lower quality auctions. Of the 5.07 million carats offered for sale, 4.45 million carats were sold (88%), with 18 of the 23 lots (78%) put up for auction being sold. In addition to the auction of gemstones mined by Gemfields at Kagem, the Jaipur event was also used to host a traded emerald auction of predominantly higher quality emeralds originating from Zambia and Brazil and obtained by Gemfields in the open market from various sources. The traded auction yielded additional gross revenue of USD 1.1 million with 20,400 carats sold.
Ian Harebottle, CEO of Gemfields, commented: "Our return to Jaipur has delivered a knock-out result at a time when global commodity and diamond prices are experiencing well-documented difficulties. Despite the volatility across international financial markets, demand for, and prices of, emeralds, clearly remain as robust as ever. The counter-market cyclicality often associated with precious gemstones, and their reputation as a store of value in turbulent times, have once again shone through." Mining.com reports that Gemfields' was trading 5.6% higher in the early morning after the announcement.