Gemfields emerald production up in Q3

Gemfields-owned brand Faberge unveiled this bejeweled egg in the company’s fiscal third quarter, its first “Imperial Class” egg since 1917.London--Output of rough emeralds and beryl from the Kagem mine in Zambia nearly tripled for Gemfields in the third quarter, driven largely by an increase in the average grades per ton.

Gemfields reported that in three-month period ended March 31, production of emerald and beryl from Kagem hit 9.9 million carats, compared with 3.6 million in the same period last year.

The average grade also was up 79 percent year-over-year, increasing from 198 carats per ton in 2014 to 355 carats per ton this year.

Total operating costs increased to $9.8 million at Kagem, largely due to the increased scale of mining activity, Gemfields said. 

In February, the gemstone miner held an auction of predominantly lower-quality rough emerald and beryl in Lusaka, Zambia during which it sold 3.9 million carats--39 percent of lots sold by weight while 88 percent sold by value--and generated revenue of $14.5 million.

Its next auction of traded rough emerald is slated to take place in India this month, along with lower- quality ruby and corundum from its Montepuez mine in Mozambique.

Montepuez, meanwhile, saw production increase from 1.1 million carats in the third quarter 2014 to 1.4 million carats in the third quarter 2015. 

However, the average grade per ton dropped significantly, decreasing from 38 carats per ton in third quarter 2014 to 18 carats per ton in 2015, which Gemfields attributes to the “largely alluvial and higher quality nature of the particular areas mined during the quarter, all against a backdrop of larger scale mining operations.”

Total operating costs at the mine also nearly doubled to $4.6 million in the quarter, due mostly to the increased scale of processing activity.

Also in the third quarter, Gemfields-owned Faberge saw the value of sales orders agreed to increase by 64 percent when compared with the prior-year period, while operating costs were flat.

RELATED CONTENT: Faberge creates first Imperial Egg in nearly a century

The brand unveiled the Faberge Pearl Egg, its first created in the “Imperial Class” since 1917, at the Doha Jewellery & Watches Expo in Qatar in February. 

Set with 139 fine white pearls with a golden luster, 3,305 diamonds, carved rock crystal and mother-of-pearl on white and yellow gold, the egg sold within hours of its unveiling to  local businessman