Gemfields says ethical Zambian emeralds sought after, June auction rakes in $9 mln

Gemfields said its ethical Zambian emeralds were sought after during an auction earlier this month in Jaipur, India, although it reported some weakness in demand for the very lowest quality grades.
A total of 10.85 million carats of mainly lower quality stones were offered, with 3.47 million carats sold.
The miner accrued $9 million from the auction, bringing the running total to almost $78 million in the current financial year.
“General economic instability typically has a greater negative impact on the lower quality grades than it does on the higher quality material, the latter often being seen as a store of value in times of uncertainty,” said company chief executive Ian Harebottle in a statement to shareholders.
“This effect was clearly seen at this auction, where demand for the lowest quality grades was indeed weaker than it has been for some time.”
He said Gemfields was not obliged to sell lots at sub-optimal prices due to its strong cash position and operational performance.
“Overall, the on-going appetite for better grades remains firm and ensured that Gemfields was able to deliver another set of encouraging auction results thanks to our positive momentum, the success of our marketing initiatives and the consistency of the emeralds produced at our Kagem mine,” said Harebottle.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished