Gemfields books record $43.3m from emerald auction

Ruby and emerald miner Gemfields, which also owns Fabergé, says its recent series of emerald auctions yielded a record $43.3m (R678m), saying this underscored the “remarkable” level of demand for precious stones.  

London and JSE-listed Gemfields, established in 2007, had held its first significant auctions in Thailand in May, saying it also achieved its highest average price per carat achieved at any of its 41 emerald auctions since July 2009.

Gemfields, whose two key operating assets are Montepuez ruby mine in Mozambique and the Kagem emerald mine in Zambia, is highly dependent on auction revenue. However, in 2020 Covid-19 brought travel to a halt and therefore viewings, with the group developing an online auction system in response.

The recent auction lots were made available for in-person and private viewings by customers in Bangkok, Thailand. After the viewings, the bidding took place via an online auction platform specifically adapted for Gemfields which permitted customers from multiple jurisdictions to participate in a sealed-bid process.

“Kagem’s second auction of 2022 has again been hotly contested, reaffirming the remarkable levels of demand prevailing in the emerald and ruby markets,” said Gemfields MD for product and sales Adrian Banks in a statement.

“Kagem’s first half auction revenues now stand at $85.7m versus full-year auction revenues in 2021 of $92.3m, again highlighting the step-change being experienced in the market,” he said.

gernetzkyk@businesslive.co.za