Sharenet Sites 
Sharenet Sites
Jaipur Emerald Auction Results
PALLINGHURST RESOURCES LIMITED
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: PALLRES ISIN: GG00B27Y8Z93
Share code on the JSE: PGL
("Pallinghurst" or the "Company")
Jaipur Emerald Auction Results
Pallinghurst is pleased to announce the results of an auction of predominantly commercial quality rough emerald
held by Gemfields Ltd (“Gemfields”, which is 100% owned by Pallinghurst) in Jaipur, India from 19 – 22 February
2018. The emeralds were extracted by Kagem Mining Ltd in Zambia (“Kagem”, which is 75% owned by Gemfields and
25% by the Government of the Republic 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.
Highlights – Emerald Auction
- Auction revenues of US$10.8 million
- Of the 21 lots offered, 19 were sold (90%)
- Average price of US$3.05 per carat
- 95% of the carats offered were sold
- The Kagem auctions held since July 2009 have generated US$506 million in total revenues
The auction saw 31 companies placing bids, generating total revenues of US$10.8 million with an overall average
value of US$3.05 per carat. Robust demand resulted in 95% of the offered carats being sold (or 90% of the number
of lots offered).
Gemfields’ 27 auctions of emeralds and beryl mined at Kagem since July 2009 have generated US$506 million in total
revenues.
The results of the five most recent commercial quality Kagem auctions are summarised in the table below:
AUCTION RESULTS Nov ‘15 May ‘16 Sep ‘16 May ‘17 Feb ‘18
(COMMERCIAL QUALITY) AUCTION AUCTION AUCTION AUCTION AUCTION
18-21 Nov 17-20 May 26-29 Sep 15-18 May 19-22 Feb
Dates 2015 2016 2016 2017 2018
Location Jaipur, India Jaipur, India Jaipur, India Jaipur, India Jaipur, India
Commercial Commercial Commercial Commercial Commercial
Type Quality Quality Quality Quality Quality
Carats offered 5.07 million 3.67 million 4.05 million 3.10 million 3.73 million
Carats sold 4.45 million 2.78 million 3.27 million 3.10 million 3.55 million
No. of companies placing bids 29 26 30 33 31
Average no. of bids per lot 6 7 7 9 5
No. of lots offered 23 18 19 23 21
No. of lots sold 18 14 15 23 19
Percentage of lots sold 78% 78% 79% 100% 90%
Percentage of lots sold by weight 88% 76% 81% 100% 95%
Total sales realised at auction US$19.2million US$14.3 million US$10.7 million US$14.5 million US$10.8 million
Average per carat sales value US$4.32/carat US$5.15/carat US$3.28/carat US$4.68/carat US$3.05/carat
The specific auction mix and the exact 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. Each auction naturally contains
a degree of variation in overall quality composition and therefore the results of each auction are not always directly
comparable.
Sean Gilbertson, CEO of Gemfields, commented:
“We’re very pleased to see the enduring demand that underpinned the sale of 95% of the carats offered. The results
support our view that the fundamentals of the coloured gemstone sector remain in good shape despite thinner auction
bidding, with some customers noting decreased availability of financing for gemstones in India and pointing to the
allegations surrounding the jewellery houses of Nirav Modi and Gitanjali. While the overall average price per carat
for this auction appears somewhat lower due to the inclusion of lower quality grades not included in our prior auction,
we’re very pleased with the quality-for-quality prices achieved.
This auction also sees Kagem pass US$500 million of aggregate revenue since Gemfields acquired its 75% stake. We
believe this is the first time a coloured gemstone mine has transparently attained this milestone with publicly available
data. The Zambian Government’s share of these revenues - in the form of royalties, corporation tax and dividends -
exceeds US$105 million, or 21%. We congratulate our hard-working team and our partners in Kagem, the Government
of the Republic of Zambia”.
Additional information on Gemfields
Gemfields is a world leading supplier of responsibly sourced 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
licenses in Zambia, Mozambique, Ethiopia and Madagascar.
Gemfields’ outright ownership of Fabergé – an iconic and prestigious brand of exceptional heritage – enables
Gemfields to optimise the positioning, perception and consumer awareness of coloured gemstones, 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
and has played an important role in the growth of the global coloured gemstone sector.
Further information on Gemfields and Pallinghurst can be found at www.gemfields.com and
www.pallinghurst.com.
Guernsey
23 February 2018
Sponsor
Investec Bank Limited
Date: 23/02/2018 08:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
