Gemfields held a small auction of previously unsold high quality emeralds carried over from its November lot last week and earning $4.8 million (R88m) in revenues, with the company getting higher bids.

The company delayed the auction of some of its emeralds as market conditions were less favourable. Diamond and other precious stones producers have been constraining market supply to cajole prices up as competition from lab grown diamonds intensifies.

Gemfields auctioned the emeralds carried over from November 2025 during an auction held from February 19 to February 20. The $4.8m revenue it earned from the auction came after 10 of the 13 lots available were sold. The company sold 45 864 carats out of 59 192 carats that were on offer at average prices of $105.49 per carat

“This auction was solely comprised of unsold lots from Kagem’s November 2024 higher-quality emerald auction, some three months ago. The composition of the schedules on offer remained unchanged, providing Gemfields with a rare opportunity to directly compare demand and pricing between two auctions,” said Adrian Banks, Gemfields’ product and sales managing director.

He explained that the company had recorded “notably higher bids” for the latest auction although he said market sentiment remains subdued.

“Market sentiment remains clearly subdued. It is encouraging to see improvement in both demand and pricing,” added Banks.

The rough emeralds sold by Gemfields this month were extracted by the company’s 75% owned Kagem subsidiary in Zambia. Gemfields also owns majority shares in the Montepuez ruby mine in Mozambique.

Last week, Gemfields received a reprieve after the government of Zambia suspended a 15% levy on gemstone exports. It had been facing challenges related to the export levy that had forced it to suspend shipments, power cuts and a claim by a rival miner.

The Zambian woes have been mounting for Gemfields. Last month, the company said a claim had been filed against Kagem by rival miner, Grizzly Mining Limited, its sister company Pridegems Mines Limited and proprietor Abdoulaye Ndiaye.

The claim relates to “alleged unlawful occupation” by Kagem of an area known as Kamakanga House as well as “conspiracy to injure business reputation” and goodwill.

In 2024, Gemfields raked in $196m from Gemfields’ earned $196 million in revenue from gemstone sales in 2024, the company said on Friday although it closed the period with a net debt position of $80.5 million. It said the net debt position was mainly a result of Gemfields continuing to fund the second processing plant at the Montepuez Ruby Mine in Mozambique.

“Net debt position of $80.5m before auction receivables of $33.9m at 31 December 2024 as Gemfields continues to fund MRM’s second processing plant,” said the company.

The construction of the second MRM processing plant” remains materially on budget and on track for completion” this year.

BUSINESS REPORT