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GEMFIELDS GROUP LIMITED - Singapore Emerald Auction Results

Release Date: 22/11/2019 07:30
Code(s): GML     PDF:  
 
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Singapore Emerald Auction Results

GEMFIELDS GROUP LIMITED 
(Incorporated in Guernsey) 
(Guernsey registration Number: 47656) 
(South African external company registration number 2009/012636/10) 
Share code on the BSX: GML.BH      ISIN: GG00BG0KTL52 
Share code on the JSE: GML         LEI: 21380017GAVXTCYS5R31 
("Gemfields" or the "Company") 
        

Singapore Emerald Auction Results 
                                                                   
       Gemfields is pleased to announce the results of an auction of higher quality rough emeralds held in Singapore from 
       18-21 November 2019. The emeralds were extracted by Kagem Mining Ltd in Zambia (“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.   
        
       Highlights – Emerald Auction 
        
            - Auction revenues of USD 27.2 million 
            - Average price of USD 85.26 per carat, an all-time record 
            - Of the 38 lots offered, 33 were sold (87%) 
            - 88% of the carats offered were sold 
            - The 34 Kagem auctions held since July 2009 have generated USD 635 million in total revenues 
        
       The auction saw 48 companies placing bids and generating total revenues of USD 27.2 million with an overall average 
       value of USD 85.26 per carat. The auction saw 88% of the offered carats being sold (or 87% of the number of lots 
       offered).   
        
       Gemfields’ 34 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 635 million in 
       total revenues. 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                Oct ‘17            May ‘18               Nov ‘18            May ‘19            Nov ‘19 
           (HIGHER QUALITY)              AUCTION             AUCTION              AUCTION             AUCTION           AUCTION 
                    
                                          2-5 Oct            15-18 May           14-17 Nov           14-17 May          18-21 Nov 
Dates                                       2017                2018                2018                2019               2019 
Location                                   Lusaka              Lusaka            Singapore           Singapore          Singapore  
Type                                   Higher Quality      Higher Quality      Higher Quality      Higher Quality     Higher Quality 
Carats offered                          0.32 million        0.31 million        0.57 million        0.43 million       0.36 million 
Carats sold                             0.32 million        0.17 million        0.42 million        0.31 million       0.32 million 
No. of companies placing bids                36                  31                  40                  45                 48 
Average no. of bids per lot                  11                   8                   8                   8                  9 
No. of lots offered                          18                  17                  26                  35                 38 
No. of lots sold                             18                  10                  20                  28                 33 
Percentage of lots sold                     100%                59%                 77%                 80%                87% 
Percentage of lots sold by weight           100%                56%                 74%                 72%                88% 
Total sales realised at auction       USD 21.5 million    USD 10.3 million    USD 28.4 million    USD 22.4 million   USD 27.2 million 
Average per carat sales value         USD 66.21/carat     USD 59.55/carat     USD 68.03/carat     USD 71.85/carat    USD 85.26/carat 
        



The specific auction mix and 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. Therefore, the results of each auction 
are not always directly comparable.  
 
Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented: 
 
“Kagem has realised USD 79 million of auction revenues in 2019, the second-best calendar year performance since 
the auction system was introduced a decade ago. The recovery being experienced by our auction customers therefore 
appears to have solid foundations, as is further evidenced by the 48 companies placing bids, a record for any Gemfields 
emerald auction. While the auction’s overall price-per-carat was also a record, each auction has a slightly different 
composition and should not be directly compared.  

Despite the robust mining and sales performance, the Kagem team’s sterling efforts are unlikely to be rewarded given 
that the auction revenues of USD 79 million are poised to suffer both 15% export duty and 6% mineral royalty tax, 
totalling USD 17 million. The 6% mineral royalty tax itself is then again taxed at the corporation tax rate of 30%, as 
are Kagem’s profits. The effective tax rate is therefore crippling for any business.  

In addition to our stalwart clients from India, we also congratulate Caibaocheng of China and Gemstar of Israel, each 
of whom won three lots of fine quality Zambian emeralds.” 

 
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 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 Group Limited can be found at www.gemfieldsgroup.com 
To join our press release mailing list, click here: gemfields@gemfields.com  
For any press enquiries please contact us on investor.relations@gemfields.com  
 
London 
22 November 2019 
 
Sponsor 
Investec Bank Limited 




 

Date: 22/11/2019 07:30:00
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