Gemfields Group's share price rises after successful emerald auction

THE share price of Gemfields Group, the JSE-listed miner of valuable coloured stones, shot up 0.5% on Friday afternoon after the company said a decision to reopen its Kagem mine had been vindicated by a successful emerald auction.

- EDWARD WEST

The company announced that 38 lots of high-quality emeralds were offered for sale at an auction between August 25 and September 11, all of which were sold. The share price traded at R1.50 on the JSE, with the higher price providing a meaningful respite considering it traded at R2.77 a year previously.

Total revenues of $32 million were realised at the auction. The average realised price was $160.78 per carat. The group has generated over $1.12 billion in revenues through the 52 auctions of Kagem gemstones held since July 2009.

Gemfields owns 75% of the Kagem emerald mine in Zambia, and the Zambian government owns 25% through its Industrial Development Corporation.