Gemfields, the majority owners of Kagem Mines have reported another healthy quarter having produced 8.9 million carats of emerald and beryl in the three months to 30 June.
The company increased production from Kagem, in which the Zambian government owns a 25% stake, by 42% year-on-year to 29.99-million carats in the 12 months ended June.
Gemstone production for the year as a whole increased by 42% to 29.9 million carats, while the average grade for the year was up 38% to 283 carats per tonne, boosted by an average of 322 carats per tonne for the final quarter.
The higher average grades pushed production costs down, with the unit-per-carat production cost down 13% to $0.50 per carat for the final quarter and down 26% to $0.55 for the full year.
Commenting on the quarterly results, Gemfields Chief Executive Officer Ian Harebottle said the firm is pleased to report on another healthy quarter and a strong annual production result for the world-class Kagem emerald mine.
He focused on the success of two recent auctions, one of lower-quality emerald and beryl held in April and one of higher-quality emeralds held in July.
The lower-quality auction, held in Lusaka between 15 and 19 April, yielded $15.2 million in revenue, while the higher-quality auction yielded $31.5 million.
As this second auction was held after the end of the final quarter, the revenue gained from it could not be included in cash totals for the full year and Gemfields had cash of $11.6 million and debt of $11.6 million on 30 June.
He added that Gemfields was in conversation with the Zambian government with respect to possible restrictions on the ability of Gemfields to freely choose the locations of its auctions.
Gemfields reported that illegal mining activity in the Kagem mining licence area was yet to be fully resolved and that it continued to work with key Ministries to alleviate the problem.
PF at work.
PF has got absolutely nothing to do with this… It’s the hardwork of the employees at Kagem who’re being paid peanuts despite their hardwork and the PF you’re supporting stand by and watches without intervening to standardise the conditions and upgrade workers’ wages and salaries.
Good news …..ain’t these not the selfsame foreign managers who were complaining to the city when gov’t made the decision to hold all auctions in Zambia.
Kudos to GEMFIELDS for the 2 successful auctions held in Zambia which have raised nearly 50mUS$. We are nearly coming to end of 2013 and there has not been any reported auctions by similar size emerald mining companies and its all strangely quite. Are GRIZZLY and other West African/Indian owned companies no longer producing from their mines? If producing where are they selling the emeralds to finance the operations? Its reported that we produce 20% of world’s emeralds and whose total annual global production has been put at US$2bn. This implies that Zambia accounts for US$400m. Perhaps the Mines Minister can inform the nation, apart from GEMFIELDS, the production/sales figures from the other mines