Gemfields output soars 42pc as auctions achieve record results

 
Suzie Neuwirth
AIM-LISTED Gemfields yesterday posted a 42 per cent increase in year-on-year gemstone production to 29.99m carats for the year ending 30 June.

Quarterly production grew to 8.9m carats from 7.3m carats year-on-year.

Chief executive Ian Harebottle said that the miner had achieved “record revenues” and “record per carat prices” at recent emerald auctions, which were held within Zambia due to government restrictions.

“The company still needs to tackle the Zambian government’s intention to restrict overseas sales of emeralds; however, the recent success of higher quality auctions demonstrates strong demand for the stones despite the auction taking place in country,” said Investec in a note.

The Faberge brand was acquired in January and achieved a record number of unit sales in the financial year, the company said.

Gemfields continues its sampling activities at a ruby deposit in Mozambique, with the first auction expected in early 2014.

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