Auction Results - Higher-quality emeralds

Gemfields Group Limited

22 November 2024

 

Incorporated in Guernsey. Guernsey registration Number: 47656.

South African external company registration number 2009/012636/10

Share code on JSE:GML  / AIM:GEM

    ISIN: GG00BG0KTL52   |   LEI: 21380017GAVXTCYS5R31

("Gemfields" or the "Company")

Auction Results - Higher-quality emeralds

LONDON, 22 NOVEMBER 2024

Gemfields announces the results of an auction comprised of higher-quality rough emeralds held during the period 4 - 21 November 2024.

Highlights: November 2024 Higher-Quality Emerald Auction

·    Total auction revenues of USD 16.1 million

·    43 lots were offered for sale of which 30 were sold (70%)

·    141,084 carats of 200,460 offered were sold (70%)

·    Average price of USD 113.96 per carat

·    The 50 auctions of Kagem gemstones held since July 2009 have generated USD 1,068 million in total revenues

Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:

"While the top quality lots in this auction saw bidding within touching distance of our all-time records for emeralds, the overall result for this auction is very disappointing, driven by fewer and poorer bids for lesser quality grades.

While the wider luxury and gemstone markets are undeniably facing challenging times, customer attendance and engagement at the auction were good, as is evidenced by the strength of bidding for the top quality lots on offer.

As reported at the time of our September 2024 commercial-quality emerald auction, we continue to see emerald market dynamics considerably disturbed by a competing Zambian emerald producer who is holding regular auctions (September, October and November, with the latter commencing today, 22 November 2024, in Dubai and promoted as the 'largest emerald auction in history') and selling through their emeralds at what customers are reporting as low prices. We believe this is a transient market dynamic and does not reflect a medium- or long-term structural change in supply or market demand.

Gemfields remains committed to leadership and market stability. As demonstrated by today's auction, we have taken proactive steps to support the market by withholding certain lots that did not achieve satisfactory bidding. We believe this approach helps foster a more secure and sustainable market for all stakeholders including our customers."

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

The rough emeralds sold were extracted by Kagem (which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia). The proceeds of this auction will be fully repatriated to Kagem in Zambia with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.

The results of the five most recent Higher-Quality Kagem auctions are summarised in the table below (and earlier results are available at www.gemfieldsgroup.com):

AUCTION RESULTS (HIGHER QUALITY)	May '22 AUCTION (5 sequential mini-auctions)	Nov '22 AUCTION    (5 sequential mini-auctions)	May-Jun '23 AUCTION   (5 sequential mini-auctions)	May '24 AUCTION (5 sequential mini-auctions)	Nov '24 AUCTION    (5 sequential mini-auctions)
Dates	9 - 26 May 2022	30 Oct - 17 Nov 2022	15 May - 1 Jun 2023	13 - 30 May 2024	4 - 21 Nov 2024
Location	Bangkok / Online	Bangkok / Online	Bangkok / Online	Bangkok / Online	Bangkok / Online
Type	Higher Quality	Higher Quality	Higher Quality	Higher Quality	Higher Quality
Carats offered	277,775	426,180	264,132	240,000	200,460
Carats sold	277,775	401,180	264,132	208,990	141,084
No. of companies placing bids	62	50	69	60	56
No. of lots offered	38	37	35	46	43
No. of lots sold	38	34	35	43	30
Percentage of lots sold	100%	92%	100%	93%	70%
Percentage of lots sold by weight	100%	94%	100%	87%	70%
Total sales realised at auction	USD 43.3 million	USD 30.8 million	USD 43.7 million	USD 35.0 million	USD 16.1 million
Average per carat sales value	USD 155.90/carat	USD * 76.78/carat	USD 165.55/carat	USD 167.51/carat	USD 113.96/carat

* Includes the 37kg 'Kafubu Cluster', which comprised 44% of the weight offered at the auction.

The specific auction mix and the quality of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of variations in mined production and market demand. Therefore the results of each auction are not always directly comparable.

-ENDS-

Further information on Gemfields Group Limited can be found at:

 GEMFIELDSGROUP.COM

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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) no. 596/2014 which forms part of domestic UK law pursuant to the European Union (withdrawal) act 2018 ("MAR").

ENQUIRIES

GEMFIELDS	Sean Gilbertson / David Lovett / Ian Hughes [e-mail] T:  [phone]
SPONSOR (JSE)	Investec Bank Limited
NOMINATED ADVISER (AIM) & BROKER	Panmure Liberum Scott Mathieson / Kieron Hodgson / Amrit Mahbubani / John More T: [phone]
GEMFIELDS HEAD OFFICE PR, LONDON	Helena Choudhury / Albertina Namburete [e-mail] / [e-mail]

ADDITIONAL INFORMATION ON GEMFIELDS

Gemfields is a world-leading responsible miner and marketer of coloured gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone mining and prospecting licences in Zambia, Mozambique, Ethiopia and Madagascar. Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones through Fabergé designs, advancing the wider group's "mine and market" vision. Gemfields has developed a proprietary grading system and a pioneering auction platform to provide a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields' business model that has played an important role in the growth of the global coloured gemstone sector.

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MONTEPUEZ RUBY MINING LINKEDIN

 

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