Gemfields PLC
Second Rough Emerald Auction of 2009
9 December 2009
Gemfields PLC ("Gemfields" or "the Company", Ticker "GEM") announces the
results of its second rough emerald auction for 2009.
Gemfields held its second rough emerald auction for the year between 23 and 27
November 2009. The auction, orchestrated by Gemfields' Product Director Adrian
Banks, saw 1.12 million carats of high quality rough emeralds offered in 19
separate lots. Gemfields set undisclosed reserve prices for each lot in advance
of the auction which was attended by more than 20 companies from India.
Participation in Gemfields' auctions is by invitation only.
Each of the two auctions consisted of high quality rough emeralds falling
approximately within the best 7% of Gemfields' production by weight. The
results of both auctions are summarised below:
JULY `09 AUCTION NOVEMBER '09 AUCTION
Dates 20-24 July 2009 23-27 November 2009
Carats offered 1.36 million 1.12 million
No. of companies placing 23 19
bids
Average no. of bids per 10 13
lot
No. of lots offered 27 19
No. of lots sold 26 14
Percentage of lots sold 96% 74%
Percentage of lots sold 99.8% 97.2%
by weight
Percentage of lots sold 82% 76%
by value
Total sales realised at USD 5.9 million USD 5.6 million
auction
Average per carat sales USD 4.40 per carat USD 5.10 per carat
value
Emerald value declines dramatically as quality decreases and achievable prices
for rough emerald varies widely from lower-quality to higher-quality material,
ranging from USD 0.01 per carat (produced in large volumes) through USD 500 per
carat (of which very little material is produced). Since Gemfields has not yet
sold any meaningful quantities of lower quality material, it remains difficult
to predict with reasonable accuracy the average per carat revenues that will be
derived from Gemfields' overall production profile. Lots in the November
auction ranged from approximately USD 1.00 per carat to approximately USD
200.00 per carat.
An auction of lower quality rough emerald and beryl is expected to be held in
Jaipur, India, during the first quarter of 2010.
Ian Harebottle, CEO of Gemfields, commented:
"Our November auction demonstrates that Gemfields is delivering on its vision
of supplying rough emerald to selected customers on a regular and reliable
basis. While the gemstone markets remain relatively weak in the wake of the
global financial crisis, it is clear that our marketing and promotional
initiatives are working and that the emerald market is gathering momentum. We
will continue to work, in conjunction with selected customers, to stimulate
demand for emeralds that have followed a transparent and ethical route to
market."
Enquiries:
Gemfields plc richard.james@gemfields.co.uk
Richard James, CFO + 44 (0)20 7518 3402
Canaccord Adams Limited
Nominated Adviser and Joint Broker to Gemfields
Mike Jones/Tarica Mpinga/Andrew Chubb +44 (0)20 7050 6500
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