London-listed Gemfields (LON:GEM) raised $34.9 million at its latest higher quality emerald auction. 598,000 carats were up for sale of which 88.6% were purchased by auction conclusion yesterday. The company has 75 percent ownership in Kagem mine with the rest owned by the Zambian government through ZCCM Investment Holdings.
Gemfields six Lusaka auctions have yielded total revenues of $ 150 million. Their next auction will be held in Singapore next month and will consist of rubies from the company’s Mozambique operations.
Production down at Kagem
Third quarter production of emerald and beryl at Kagem mine was down 3.1% year-over-year to 6.3 million carats (with grade of 214 carats per tonne). Operating costs increased by 45.1 percent year-over-year to $10.3 million.
Zambia is one of the largest emerald producers in the world, trailing only Colombia and Brazil.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *