Gemfields – recalibrating supply for a softer market

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The company delivered results in line with expectations and is positioning itself for further growth.

Gemfields extends transparency efforts in new emerald operation

gemfields

Source: luxurydaily.com

Colored-gemstone miner Gemfields has announced its controlling interests in two emerald projects located in Colombia.

Gemfields sources many of the precious gemstones used in high jewelry, with brands such as Graff Diamonds and Bulgari as clients. Recently, due to the environmental impact of and social risks involved in mining, Gemfields has pledged transparency and has consistently used its social media accounts to share brand happenings and projects.

The first project Gemfields has acquired interest of, at 70 percent, is the Coscuez Emerald Mine. In operation for more than 25 years, the Coscuez Emerald Mine has produced some of the country’s finest emeralds.

Gemfields also shared the preliminary geological due diligence studies that were conducted between October 2013 and August 2014 for the Coscuez Emerald Mine. Sharing this information furthers Gemfields’ openness in its operations and the mines it supports.

Gemfields’ second project is an exploration prospect currently held by Isam Europa S.L. The acquisition agreement of 75 percent and 70 percent interests in two Colombian companies with mining rights has been approved and issued. The contract covers approximately 20,000 hectares where minor mining operations have been conducted amid the greenery.

Both of the Gemfields projects are located in the Boyacá state of Colombia.

On its social media accounts, Gemfields also shared a word from its CEO, Ian Harebottle. In his statement, Mr. Harebottle said, “Gemfields is delighted to announce its entry into Colombia, home to some of history’s most legendary emerald mines and a country with tremendous potential. The proposed acquisitions will require further work and additional exploration before any meaningful production commences but they are clearly in line with our strategy of expanding Gemfields’ global footprint in a considered yet cautious fashion.

“Transparency, responsibility, marketing, collaboration and teamwork have been key tenets of what Gemfields has been able to deliver within the Zambian emerald sector and more recently with our ruby deposit in Mozambique.”

In another message of transparency Gemfields shared details of its operation of sapphire mines in Sri Lanka, rounding out its sources of the gemstone industry’s “big three”.

White diamonds versus coloured gemstones

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We publish courtesy of The National
Author: Harvey Jones

Dev Shetty, chief operating officer at Gemfields, the world’s largest producer of coloured gemstones, says the coloured gemstones market is young and fast-growing.

“Diamonds are a rare commodity, but emeralds are 20 times rarer than diamonds,” he says.

Gemfields mines and markets Zambian emeralds and amethysts and Mozambican rubies, and will soon start mining sapphires in Sri Lanka. Mr Shetty says while the South African miner De Beers Group’s brilliant marketing push in the 1960s and ‘70s was hugely successful in building the white diamond market, retail prices have flattened in recent years.

“Diamonds are a mature market with a 200-year history, whereas coloured gemstones marketing only really started in earnest five years ago. Unlike diamonds, the pricing matrix isn’t as defined, but prices are growing rapidly. In July 2009, our high-quality rough emeralds were selling at an average of $4.40 per carat at auction. Now they fetch closer to $59 per carat.”

This means you can get started with much smaller sums of money than in the white diamond market. But you can also spend big. This month, Sotheby’s in Geneva sold an 8.62-carat Burmese ruby for $8.6 million, a record $997,727 per carat.

In 2011, the same auction house sold a 12.01-carat Colombian emerald for $1.44m, nearly $119,000 per carat. By comparison, the most expensive ever white diamond, a 118-carat piece, sold for more than $30m at Sotheby’s in Hong Kong last year, at $254,143 per carat.

“Collectors are investing significant money in coloured gemstones,” says Mr Shetty. “We are working hard to create support and demand, boost consumer awareness and develop the market.”

Gemfields plans to open a sales office in Dubai next year, selling coloured gemstones directly to jewellery manufacturers, retailers and private investors. Wherever you buy gemstones, you must get the right certification, key to protecting your investment.

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Gemfields falls 27% as Zambia imposes ban on gemstones sales

Immagine

Source: MINING

Author: Cecilia Jamasmie

Precious stones miner Gemfields (LON: GEM), the world’s biggest emerald producer, said theZambia government’s ban on overseas auctioning of gemstones would hurt revenue at its flagship Kagem emerald mine in north Zambia.

Shares in the company plummeted as much as 27% on the news, hitting the steepest decline in more than four years.

“Gemfields believes that any outright limitation on selling emeralds in other countries could have the potential to materially constrain Kagem’s revenues,” the company said in a written statement Monday.

The company, which currently sells its emeralds at auctions in Singapore and India, produced 21 million carats of the precious stones from its Kagem mine last year. Gemfields said it has written to Zambia’s minister of mines, energy and water development to request clarification of the terms of the new measures.

Emerald production from Kagem has been sold exclusively outside Zambia since 2009, generating $160 million of revenue from 11 auctions abroad.

Kagem had revenue of $77.6 million in 2012, compared with $8.8 million in 2008, when Gemfields acquired the mine.

The ban would also affect Gemfields’ Kariba amethyst mine in south Zambia, in which the company has a 50% stake, the firm said.

Ban of auctioning emeralds abroad good

Emerald crystal from Kagem mine

Emerald crystal from Kagem

 

 

Source: Zambia Daily Mail

Authors: NKWETO MFULA and JERRY MUNTHALI

A MINING expert says Government’s move to ban the auctioning of emeralds abroad will trigger the growth of the gemstone sector and impact positively on Gross Domestic Product (GDP).
Dr Sixtus Mulenga, who is Geological Society of Zambia chairman, said the gemstone sector has huge potential to create industries, especially in the cutting and polishing of precious stones.
He also said the ban on emerald exports will result in the establishment of a strong lapidary industry in Ndola.
“It is a very excellent move; it will make significant contribution towards the GDP of Zambia. We applaud Government on this move as it will result in job creation in the sector,” Dr Mulenga said.
He said in an interview yesterday Government will now be able to quantify the exports and the value of emeralds, which was not known before.
“Emerald-cutting industries are likely to be constructed in Ndola. Previously, premiums for the gemstone sector were obtained outside Zambia like in India, Europe and many other foreign countries,” Dr Mulenga said.
He said Zambians will now play an active role in the gemstone industry because middlemen will no longer be involved.
Dr Mulenga said in the past, most gemstone miners auctioned their products through middlemen and that this will no longer be the case.
And Mineworkers Union of Zambia (MUZ) deputy-general secretary Leonard Phiri welcomed Government’s move to ban the auctioning of emeralds abroad.
“The auctioning of emeralds has been done on the local market before and it was just in the recent past when Government allowed the auctioning of gemstones outside the country,” Mr Phiri said
He added: “The buyers were being invited and they would come in the country, that encouraged people to visit Zambia.”
But the Alliance for Responsible Mining in Zambia (ARMZ) says the auctioning of emeralds locally will result in revenue losses for the country.
ARMZ executive director Victor Kalesha said in response to a press query yesterday that there is great misunderstanding regarding the auctioning of gemstones.
“Auctioning stones locally is what will make the country lose out.
When you are auctioning stones locally, the big buyers do not come and as such you only pocket buyers who go to sell to big buyers,” he said.
Mr Kalesha, who is Emerald and Semi-Precious Stones Mining Association of Zambia (ESMAZ) general-secretary, said all that is needed is proper monitoring and that measures should be put in place to prevent porous auctioning.
“The other way to do it is to make Zambia Revenue Authority, Ministry of Mines, Energy and Water Development, Ministry of Commerce, and Trade and Industry and Ministry of Finance aware of the true value of emeralds and the grading from low quality to high quality,” Mr Kalesha
said.
He said the auctioning of emeralds locally was tried by Kagem Mining and it was noticed that local sales were very low.
“But if you notice the increase in Gemfields sales, you are able to tell that outside auctioning is the best because it attracts big buyers,” Mr Kalesha said.
He said Government should also involve associations such as ESMAZ, ARMZ and Kalomo miners in the monitoring of production for mines.
“The problem is that decisions are being made by people who do not understand the industry without consulting the players on the ground,” Mr Kalesha said.
Minister of Mines, Energy and Water Development Yamfwa Mukanga announced on Friday that the auctioning of Zambian emeralds would no longer be done abroad.
Mr Mukanga said the move is aimed at earning Zambia more money from its mineral wealth.

Magnificent 720 ct Emerald crystal fetches record value

We publish courtesy of Diamond World

Emerald auction by Gemfields just concluded last week in Jo’burg. The top lot in the auction was an exceptionally rare and magnificent 720 carat emerald crystal which has set a new Gemfields record for value per carat. It is one the largest fine quality crystal ever to be appeared at the Kagem mine.

The crystal was acquired by renowned father-and-son dealers Raj Kumar and Rishabh Tongya of Precious Jewels Corpn, Jaipur, who have since named it “The Divine Green of Zambia” in reference to Rishabh’s fiance’s name Divya Modi.

The Gemfields auction fetched more than US$15 Million in 19 lots, as reported.

 

GEMFIELDS PLC – July 2010 Auction Results and Operational Update

We  publish courtesy of istockanalyst.com

Jul. 28, 2010 (PR Newswire UK Disclose) -- Gemfields PLC
July 2010 Auction Results and Operational Update

London: Gemfields PLC ("Gemfields" or "the Company", Ticker "GEM") is pleased to present the results of its July 2010 rough emerald auction as well as an

operational update for the three month period ending 30 June 2010. All figures are unaudited. Highlights July 2010 rough emerald auction realises sales of USD 7.5 million, the highest auction revenue to date. Demand for Zambian emeralds, and more specifically Gemfields' Kagem emeralds, has seen a steady increase across all sectors over the past year. Per carat prices improved 83% over the last auction of higher quality material held in November 2009. Four auctions held since July 2009 generated revenues totalling USD 26.2 million. Quarter ending 30 June 2010 saw solid production volumes, good grades and the lowest quarterly unit production costs achieved to date. The year ending 30 June 2010 saw Kagem's operating costs fall 42%, with gemstone production down just 38%, representing real achieved economies of scale. Graphical production update available at http://www.gemfields.co.uk

Emerald and Beryl Auctions
Gemfields held an auction of (predominantly higher quality) rough emeralds in London from 19 to 23 July 2010. The auction was attended by 37 companies drawn
from India, Israel, Germany and the United States. The auction saw 0.85 million carats offered, with 0.80 million carats being sold, raising USD 7.5 million.
Gemfields has now completed 4 auctions in the past 13 months, realising revenues totalling USD 26.2 million.
The results of the July 2010 auction are summarised below, together with those from the previously published auctions held in London, Johannesburg and Jaipur:

   AUCTION RESULTS      JULY '09     NOVEMBER '09     MARCH '10     JULY '10  
       SUMMARY          AUCTION         AUCTION        AUCTION      AUCTION   

Dates                  20-24 July   23-27 November   11-15 March   19-23 July 
                          2009           2009            2010         2010    

Location                London,      Johannesburg,     Jaipur,      London,   
                        England      South Africa       India       England   

Type                     Higher     Higher Quality      Lower        Higher   
                        Quality                        Quality      Quality   

Carats offered        1.36 million   1.12 million       28.90     0.85 million
                                                       million                

Carats Sold           1.36 million   1.09 million       22.80     0.80 million
                                                       million                

No. of companies           23             19              25           37     
placing bids                                                                  

Average no. of bids        10             13              8            18     
per lot                                                                       

No. of lots offered        27             19              56           27