Gemfields Singapore Emerald Auction Results

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By middle May 21, 2019 17:12

Gemfields Singapore Emerald Auction Results

Gemfields is pleased to announce the results of an auction of higher quality rough emeralds held in Singapore from 14 – 17 May 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 22.4 million
  • Average price of USD 71.85 per carat
  • The top lot set an all‐time price per carat record for Gemfields emerald auctions
  • Of the 35 lots offered, 28 were sold (80%)
  • 72% of the carats offered were sold
  • The 32 Kagem auctions held since July 2009 have generated USD 589 million in total revenues

The auction saw 45 companies placing bids and generating total revenues of USD 22.4 million with an overall average value of USD 71.85 per carat, an all‐time record for  for any Gemfields emerald auction. The auction saw 72% of the offered carats being sold (or 80% of the number of lots offered). Gemfields’ 32 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 589 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, ““As the results of this auction show, we continue to see encouraging signs of recovery in the emerald sector.We congratulate Chatree Gems of Thailand – one of our firmly established ruby auction customers ‐ on their participation in their first Gemfields emerald auction. They won three lots of fine quality emeralds, including the top lot comprising two exceptional gems weighing a total of 62 carats, and which set a new record price
per carat for Zambian rough emeralds at a Gemfields auction. The two gemstones have been named ‘Green’ and ‘Ice’ in homage to the 1981 movie starring Omar Sharif and Ryan O’Neal.”

The biggest issue Kagem presently faces is the 15% Zambian export duty imposed on emeralds since 1 January 2019. When combined with the pre‐existing 6% mineral royalty tax, Zambian emerald exporters must now pay an effective 21% turnover tax on their revenues. By contrast, the world’s second and third largest emerald exporters, Colombia and Brazil, levy 2.5% and 2.0% respectively, bringing about a watershed shift in tactical advantage. While the 15% export duty shuts the door on foreign investors and new entrants interested in the Zambian emerald sector, the financial impact is being acutely felt by incumbent producers like Kagem. We continue to liaise with the key government departments in seeking resolution and remain hopeful that a solution will be found.

Courtesy: Press Release

middle
By middle May 21, 2019 17:12
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