Production of emeralds, rubies, beryl and other gemstones at the different mines owned by Gemfields was up 40% during the quarter ended Dec 31, 2014 as compared to the same quarter a year earlier, the miner revealed in its latest production update statement.

The two successful auctions – one each for emeralds and rubies – held during the quarter also “demonstrated the ongoing firmness for coloured gemstones and associated jewelry”, the statement said.

At the 75%-owned Kagem Mining Limited in Zambia, production of emerald and beryl rose to 5.8 million carats during the quarter from 3.9 million carats a year earlier. There was however, a dip in the grade to 190 carats per tonne as against the 224 carats per tonne for the same quarter in 2013,  arising in part from bulk sampling at the new pits of Fibolele and Libwente.

Similarly, production of rubies and corundum at the 75%-owned Montepuez Ruby Mining Limitada in Mozambique for the quarter increased to 3.4 million carats from the 2.3 million carats extracted a year earlier. The grade was also lower at 34 carats per tonne against 64 carats per tonne in 2013, partially diluted due to the processing of some lower grade portions of the washing plant stockpile.

Both mines are progressing as per plan, the company said, with a successful pilot project for underground mining at Kagem having been completed alongside flexibility to extend open pit operations, and long term licences being secured for mining at two additional ruby deposits known as the Megaruma Licences alongside the Montepuez deposit.

During the quarter, Gemfields entered into a 75:25 joint venture with East West Gem Investments Limited in order to progress opportunities in the Sri Lankan sapphire and gemstone sector. A trading licence has been obtained and a token shipment of sapphires was made from Sri Lanka to Gemfields in London. Gemfields is in the process of establishing initial infrastructure in Sri Lanka and initiating preliminary geological assessments in areas of interest.

However, the company’s Faberge unit saw a drop of 12% in sales order compared to a year ago due to both a “short term shift in focus to various key initiatives set to be rolled out over the coming six months” and “a material decrease in sales arising from Ukraine and Russia.... given political and economic developments in the region”.

Gemfields will be unveiling Fabergé’s new watch, high jewellery and updated core jewellery collections in late March 2015 at BaselWorld in Switzerland.

 Ian Harebottle, CEO of Gemfields, commented, “We remain upbeat about the growth and development of our sector and look forward to the results of our two forthcoming auctions and the various luxury events scheduled to take place over the next few months.”