Gemfields: Montepuez Continues to Generate Strong Results
Gemfields plc reports its operational update for the three month period ending 30 September 2016, the first quarter of the 2017 financial year.
At Kagem emerald mine in Zambia, the company’s production clocked in at 6 million carats of emerald and beryl as compared to with an average grade of 174 carats per tonne, versus production of 7.5 million carats at an average grade of 237 carats per tonne a year earlier.
The company generated US$ 10.7 million from emerald auction in September held in Jaipur, India, at an average value of USD 3.28 per carat. The auction consisted of predominantly commercial quality rough emeralds. Next auction of predominantly higher quality rough emeralds from Kagem mine is scheduled to take place in December 2016 in Singapore.
At the Montepuez ruby mine, Gemfields produced 4.5 million carats of ruby and corundrum in the third quarter of 2016, with an average grade of 44 carats per tonne compared to 0.5 million carats with an average grade of 7 carats per tonne in the quarter ending 30 September 2015.
Gemfields’ next mixed quality auction of rough rubies extracted from Montepuez ruby mine is expected to take place in December 2016 in Singapore.
The company’s Fabergé unit saw the value of sales orders agreed during the quarter ending 30 September 2016 fell by 23% when compared to the comparative quarter last year. The number of sales transactions increased by 67% and the average selling price per piece increased by 2% during the quarter ending 30 September 2016.
September 2016 auction of predominantly higher quality rough amethysts held in Singapore generated revenues of USD 0.4 million and Second highest average realised price of 3.73 US cents per carat ever achieved at a Gemfields’ amethyst auction, company said.
Ian Harebottle, CEO of Gemfields, commented, “This has been a positive quarter with Montepuez continuing to generate strong results. At Kagem production remains consistent and operating costs saw a reduction on the corresponding period last year. Work on new projects continues apace and plans remain on schedule to meet our annual target production of 40 million carats of rough emeralds from Kagem and 20 million carats of rough rubies from Montepuez within the next three years.