Gemfields while reporting the results of its latest auction of commercial quality Zambian rough emeralds held last week, said that while the overall revenue and price per carat remained stable, demand was slow due to challenging conditions in the Indian market.

The Company said that total auction revenue was US$ 10.8 million with an average price of US$ 4.39 per carat, but, only 16 of the 23 lots (70%) and 59% of carats offered were sold.

The auction was held in Lusaka, Zambia from 18–20 February 2019 with rough extracted by Kagem Mining Ltd (75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia). 

Gemfields added that the proceeds of this auction will be fully repatriated to Kagem and all royalties on the full sale price due to the government will be paid. 

The auction saw 24 companies placing bids, generating total revenues of USD 10.8 million with an overall average  value of USD 4.39 per carat. However, only 59% of the offered carats were sold (or 70% of the number of lots offered), Gemfields said, attributing it to availability of Zambian emeralds at artificially low prices due to an ongoing shareholder dispute in GemCanton, the principal alternative source for these gemstones.

Gemfields’ 31 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$ 567 million in  total revenues. 

Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented: “While the overall revenue and price per carat realised at our most recent auction in Lusaka has remained stable, it is  clear that our client base ‐ who hail predominantly from Jaipur in India ‐ are still navigating challenging conditions in  their home market. The Indian market is particularly important when it comes to commercial quality emeralds. In  addition, it is clear that a fierce shareholder dispute at the principal alternative source of supply of Zambian emeralds,  GemCanton, is resulting in Zambian emeralds entering the market at artificially 
low prices. Given our long-term vision and our understanding of the true value of Zambian emeralds, we have elected to  retain auction lots that we believe  command higher prices than those presently offered by the market