Second Rough Emerald Auction of 2009

 
TIDMGEM 
 
Gemfields PLC 
 
Second Rough Emerald Auction of 2009 
 
9 December 2009 
 
Gemfields PLC ("Gemfields" or "the Company", Ticker "GEM") announces the 
results of its second rough emerald auction for 2009. 
 
Gemfields held its second rough emerald auction for the year between 23 and 27 
November 2009. The auction, orchestrated by Gemfields' Product Director Adrian 
Banks, saw 1.12 million carats of high quality rough emeralds offered in 19 
separate lots. Gemfields set undisclosed reserve prices for each lot in advance 
of the auction which was attended by more than 20 companies from India. 
Participation in Gemfields' auctions is by invitation only. 
 
Each of the two auctions consisted of high quality rough emeralds falling 
approximately within the best 7% of Gemfields' production by weight. The 
results of both auctions are summarised below: 
 
                              JULY `09 AUCTION       NOVEMBER '09 AUCTION 
 
Dates                         20-24 July 2009        23-27 November 2009 
 
Carats offered                  1.36 million             1.12 million 
 
No. of companies placing             23                       19 
bids 
 
Average no. of bids per              10                       13 
lot 
 
No. of lots offered                  27                       19 
 
No. of lots sold                     26                       14 
 
Percentage of lots sold             96%                      74% 
 
Percentage of lots sold            99.8%                    97.2% 
by weight 
 
Percentage of lots sold             82%                      76% 
by value 
 
Total sales realised at       USD 5.9 million          USD 5.6 million 
auction 
 
Average per carat sales      USD 4.40 per carat       USD 5.10 per carat 
value 
 
Emerald value declines dramatically as quality decreases and achievable prices 
for rough emerald varies widely from lower-quality to higher-quality material, 
ranging from USD 0.01 per carat (produced in large volumes) through USD 500 per 
carat (of which very little material is produced). Since Gemfields has not yet 
sold any meaningful quantities of lower quality material, it remains difficult 
to predict with reasonable accuracy the average per carat revenues that will be 
derived from Gemfields' overall production profile. Lots in the November 
auction ranged from approximately USD 1.00 per carat to approximately USD 
200.00 per carat. 
 
An auction of lower quality rough emerald and beryl is expected to be held in 
Jaipur, India, during the first quarter of 2010. 
 
Ian Harebottle, CEO of Gemfields, commented: 
 
"Our November auction demonstrates that Gemfields is delivering on its vision 
of supplying rough emerald to selected customers on a regular and reliable 
basis. While the gemstone markets remain relatively weak in the wake of the 
global financial crisis, it is clear that our marketing and promotional 
initiatives are working and that the emerald market is gathering momentum. We 
will continue to work, in conjunction with selected customers, to stimulate 
demand for emeralds that have followed a transparent and ethical route to 
market." 
 
Enquiries: 
 
Gemfields plc [e-mail] 
 
Richard James, CFO + 44 (0)20 7518 3402 
 
Canaccord Adams Limited 
 
Nominated Adviser and Joint Broker to Gemfields 
 
Mike Jones/Tarica Mpinga/Andrew Chubb [phone] 
 
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END