Gemfields - Re: GEM Stream Log - "Gemfields reports that its recent...

"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..."