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GEMFIELDS GROUP LIMITED
Business and Financial Review • Jun 2, 2023
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Business and Financial Review
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National Storage Mechanism | Additional information 
RNS Number : 4788B
Gemfields Group Limited
02 June 2023
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")
Record Emerald Auction Results
LONDON, 2 JUNE 2023
Gemfields is pleased to announce the results of an emerald auction comprised of higher-quality rough emeralds held during the period 15 May - 1 June 2023.
Highlights: June 2023 Higher-Quality Emerald Auction
· Total auction revenues of USD 43.7 million, an all-time revenue record for any Kagem emerald auction
· 35 lots were offered for sale, of which 35 were sold (100%)
· Average realised price of USD 165.55 per carat, an all-time record for any Gemfields emerald auction
· All-time record for price-per-carat paid for a single auction lot
· The 45 auctions of Kagem gemstones held since July 2009 have generated USD 964 million in total revenue
Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:
"Gemfields' second auction of 2023 has yielded a positively surprising outcome. In our last auction of November 2022, we saw the market normalise appreciably when compared with the exuberance of the first half of 2022. We are delighted today to see the market rebound sharply once again, underpinning the step-change in market pricing which we reported in 2022. This is our 45th auction of Kagem emeralds since 2009 and to see no fewer than three records fall (the highest-ever revenue, the highest-ever average price per carat for an emerald auction and the highest-ever price per carat paid for a single auction lot) certainly puts the proverbial smile on my dial."
The auction lots were made available in Bangkok for private, in-person viewings by customers. 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 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 price 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) | Mar-Apr '21 AUCTION (5 sequential mini-auctions) |
Nov-Dec '21 AUCTION (5 sequential mini-auctions) |
May '22 AUCTION (5 sequential mini-auctions) |
Nov '22 AUCTION (5 sequential mini-auctions) | Jun '23 AUCTION (5 sequential mini-auctions) |
| Dates | 15 Mar - 17 Apr 2021 |
1 Nov - 6 Dec 2021 |
9-26 May 2022 |
30 Oct - 17 Nov 2022 | 15 May - 1 Jun 2023 |
| Location | Various/ Online | Various / Online | Bangkok / Online | Bangkok / Online | Bangkok / Online |
| Type | Higher Quality |
Higher Quality |
Higher Quality |
Higher Quality |
Higher Quality |
| Carats offered | 0.273 million | 0.251 million | 0.278 million | 0.426 million | 0.264 million |
| Carats sold | 0.271 million | 0.251 million | 0.278 million | 0.401 million | 0.264 million |
| No. of companies placing bids | 59 | 58 | 62 | 50 | 69 |
| Average no. of bids per lot | 18 | 20 | 17 | 11 | 17 |
| No. of lots offered | 37 | 32 | 38 | 37 | 35 |
| No. of lots sold | 36 | 32 | 38 | 34 | 35 |
| Percentage of lots sold | 97% | 100% | 100% | 92% | 100% |
| Percentage of lots sold by weight | 99% | 100% | 100% | 94% | 100% |
| Total sales realised at auction | USD 31.4 million |
USD 37.8 million |
USD 43.3 million |
USD 30.8 million |
USD 43.7 million |
| Average per carat sales value | USD 115.5/carat | USD 150.65/carat | USD 155.90/carat |
USD * 76.78/carat |
USD 165.55/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:
To join our investor mailing list, contact us on:
For any press enquiries please contact us on:
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 [email protected] T: +44(0) 20 7518 3400 |
| SPONSOR (JSE) | Investec Bank Limited |
| NOMINATED ADVISER (AIM) & JOINT BROKER |
finnCap Christopher Raggett / Tim Redfern / Edward Whiley T: +44(0) 20 7220 0500 |
| JOINT BROKER | Liberum Scott Mathieson / Kane Collings T: +44(0) 20 3100 2222 |
| FINANCIAL PR/ IR | Camarco Gordon Poole / Emily Hall T: +44(0) 20 3757 4980 |
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 and trading 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.
GEMFIELDS
GEMFIELDS.COM | INVESTORS |FOUNDATION
INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
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