GEMFIELDS’ 2024 COMMERCIAL-QUALITY EMERALD AUCTION: MARKET CHALLENGES AND REVENUE HIGHLIGHTS

Auction Revenue and Statistics

Total auction revenues of USD 10.8 million.
46 lots were offered for sale, of which 28 were sold (61%).
Average price of USD 4.47 per carat.

Historical Auction Performance

The 49 auctions of Kagem gemstones held since July 2009 have generated USD 1,052 million in total revenues.
The specific auction mix and the quality of the lots offered at each auction vary in characteristics such as size, colour, and clarity, depending on variations in mined production and market demand. Therefore, the results of each auction are not always directly comparable.

Comment from Managing Director

Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented:
“The luxury-good, diamond and gemstone markets are experiencing distinct headwinds as conflicts, elections, economic uncertainty in China, and broader economic turbulence take their toll.
Today’s overall result is weaker than expected, exacerbated in part by a competing emerald producer scheduling their own auction to finish in early September 2024, in the middle of ours, and selling through their emeralds at what customers reported as low prices.
Gemfields remains committed to acting responsibly by withholding auction lots when fair market prices are not achieved, as demonstrated by the lots we withdrew from our auction, which comprised both considerable volume and value.
We hope that market conditions improve as we work towards the auction of higher-quality emeralds scheduled for November 2024.”

Auction Viewing and Sales Process

The auction lots were made available for private, in-person viewings by customers in Jaipur. Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields, which permitted customers from multiple jurisdictions to participate in a sealed-bid process.

Proceeds and Repatriation

The rough emeralds sold were extracted by 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 at the full sales prices achieved at the auction.

Summary of Recent Auctions

The results of the five most recent commercial-quality Kagem auctions are summarised in the table below (and earlier results are available at www.gemfieldsgroup.com).

Additional Information on Gemfields:

Gemfields is a world-leading, responsible miner and marketer of coloured gemstones. Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone mining and prospecting licences in Zambia, Mozambique, Ethiopia and Madagascar.

Ownership and Brand Positioning

Gemfields’ outright ownership of Fabergé – an iconic and prestigious brand of exceptional heritage – enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones through Fabergé designs, advancing the wider group’s “mine and market” vision.

Grading System and Auction Platform

Gemfields has developed a proprietary grading system and a pioneering auction platform to provide a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields’ business model that has played an important role in the growth of the global coloured gemstone sector.