Gemfields announces the results of an auction of higher quality rough emeralds held in Singapore from 14 – 17 November 2018. 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.

“Kagem and Gemfields believe coloured gemstones should be mined and marketed by championing three key values - legitimacy, transparency and integrity. We also believe that Zambia should benefit equitably from its natural resources through the taxes we contribute to the government, the foreign exchange earnings we generate, increased local employment, and the social impact of our community projects,” commented Sean Gilbertson, CEO, Gemfields.

Highlights – Emerald Auction

• Auction revenues of USD 28.4 million

• Average price of USD 68.03 per carat

• 74% of the carats offered were sold

• The 30 Kagem auctions held since July 2009 have generated USD 556 million in total revenues.

The auction saw 40 companies placing bids and generating total revenues of USD 28.4 million with an overall average value of USD 68.03 per carat. Improved liquidity in the trade customers in 74% of the offered carats being sold, versus 56% in the last auction of higher quality emeralds held in Lusaka in May 2018. Of the number of lots offered, 77% were sold (versus 59% in the May 2018 auction).

Gemfields’ 30 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 556 million in total revenues. 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: “The results of what was our first Singapore emerald auction in more than three years clearly reflect the emerging recovery among our trade customers after a protracted period of difficulty. The marked increases in the percentage of carats and number of lots sold, combined with the uptick in per carat price, bode well for further improvement in 2019. ‘Inkalamu’, the extraordinary 5,655 carat ‘Lion emerald’ which captured international media attention following its discovery at Kagem on 2 October 2018, was purchased at the auction by Rajkumar and Rishabh Tongya of Dia-Color, specialists in high-value gems. Gemfields, in furthering its support of wildlife conservation, is donating 10% of the proceeds of ‘Inkalamu’ to its conservation partners the Zambian Carnivore Programme (www.zambiancarnivores.org) and the Niassa Carnivore Project (www.niassalion.org). The Inkalamu emerald will deploy fully customised Gübelin ‘Provenance Proof’ nano-tagging, allowing the “descendants” of Inkalamu (or Inkalamu’s own ‘pride of lions’) to be traced directly to not only the mine of origin, but the gem of origin. As always, we thank both our customers and the Zambian government for their support, and give credit to every member of the loyal and hard-working teams at Gemfields and the Kagem emerald mine.”