Gemfields Forum

"Gemfields reports record revenues of US$44.3m from its final auction of rubies to be held this financial year. As with all but one of the previous six auctions of rubies from the company’s Montepuez mine in Mozambique, the auction was held in Singapore. The company offered 75 lots totalling some 1.6m carats for sale and sold a total of 1.52m carats (71 lots) realising an average price of US$296.21/carat. This means that the sales comprised 95% of both the number of lots offered and also the total carats offered for sale, which compares favourably with previous auctions uptakes have been within a range of 66% to 98% by weight... Gemfields is developing the market for coloured gemstones with the introduction of a reliable supply of rough gemstones and a consistent grading system for quality which helps to provide customers with a level of assurance in managing the manufacturing pipeline." SP Angel note out this morning on research tree

SP Angel's note on Gemfields is up on Research Tree: "Gemfields reports that its recent auction of “lower quality rough emeraldsâ€￾ held in Jaipur, India between 17-20th May, raised a total of US$14.3m, bringing auction revenues from the Kagem mine to over US$100m so far this year. A total of 2.78m carats, of the 3.67m carats offered for sale from the 75% owned Kagem mine in Zambia, was sold at a record average price of US$5.15/carat. The previous Jaipur auction of the lower quality material, held in November 2015, realised an average price of US$4.32/carat. The company notes that it did not offer any beryl for auction on this occasion, or at the previous auction of lower quality emeralds, as it had been sold direct “with a considerable degree of successâ€￾. The next Gemfields auction is due to be held in Singapore in June and is expected to comprise mainly mixed quality rough rubies from the Montepuez mine in Mozambique. Commenting on the unsold lots from the Jaipur auction, Gemfields notes that these lots had a higher degree of uncertainty with respect to final recovery and hence failed to reach the minimum reserve price. “The Company, however, believes that these goods offer considerable opportunity to further build demand in other new areas and is confident in the quality and longer term value of these lots and is supported by evidence of the US market continuing to come back on stream.â€￾ Gemfields is building confidence in the coloured gemstone market and it is particularly encouraging to hear their view that the US market is recovering..."

"Gemfields reports that its recent auction of “lower quality rough emeraldsâ€￾ held in Jaipur, India between 17-20th May, raised a total of US$14.3m, bringing auction revenues from the Kagem mine to over US$100m so far this year. A total of 2.78m carats, of the 3.67m carats offered for sale from the 75% owned Kagem mine in Zambia, was sold at a record average price of US$5.15/carat. The previous Jaipur auction of the lower quality material, held in November 2015, realised an average price of US$4.32/carat. The company notes that it did not offer any beryl for auction on this occasion, or at the previous auction of lower quality emeralds, as it had been sold direct “with a considerable degree of successâ€￾. The next Gemfields auction is due to be held in Singapore in June and is expected to comprise mainly mixed quality rough rubies from the Montepuez mine in Mozambique. Commenting on the unsold lots from the Jaipur auction, Gemfields notes that these lots had a higher degree of uncertainty with respect to final recovery and hence failed to reach the minimum reserve price. “The Company, however, believes that these goods offer considerable opportunity to further build demand in other new areas and is confident in the quality and longer term value of these lots and is supported by evidence of the US market continuing to come back on stream.â€￾ Gemfields is building confidence in the coloured gemstone market and it is particularly encouraging to hear their view that the US market is recovering..."

Very disappointing auction result- at least $10m below expectations.

bwng

Auction result out on GEM's website- LSE's RNS service seems to be down at the moment. Smaller quantity offered but high take up and good unit price. Also managed to shift some beryl.

Good point ericeric- all the industry talk over the past 1-2 years has been of convergence between prices of diamonds and coloured stones. Hopefully we will see this reflected in prices realised in the next emeralds auction- as we already did for rubies in June

I visited a Faberge store yesterday (25th anniversary present). Superb design, premium brand, will before long be worth close to GEM's current market cap in my opinion! My poi t is that the asset backing and growth potential of emerald and ruby operations suggest there is a lot more upside for this share on a 2-3 year view.

No news from Jaipur yet, but not surprising- the last one took place from 26-30 Sep but want announced until 10 Oct, so news might still be another week away.

Welcome to the new Gemfields stream forum! Messages posted in the Gemfields stream will be logged here for posterity.