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Gemfields' 2Q Production Jumps, Sales Fall at Fabergé

Feb 17, 2015 8:18 AM   By Jeff Miller
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RAPAPORT...  Gemfields plc reported that emerald and beryl production rose 48.7 percent year on year to 5.8 million carats in the second fiscal quarter that ended on December 31. Operating costs jumped 61.1 percent to $11.6 million, largely the result of increased mining activity. The final auction of the quarter,  held in November, generated $34.9 million from the sale of predominantly higher-quality rough emerald and beryl. 

In addition, Gemfields' ruby production increased 47.8 percent to 3.4 million carats, while operating costs rose 148 percent to $5.7 million. In December, Gemfields held an auction of higher-quality rough ruby  in Singapore, which generated sales of $43.3 million. 

The company's Fabergé unit experienced a sales decline of 12 percent, while its operating costs fell only 5 percent.  Gemfields observed a sharp drop in sales across the Ukraine and Russia, but did not provide hard totals. Nonetheless, the company plans to launch new high jewelry and time pieces within the next six months, which will debut at the Doha Jewellery and Watches Expo in Qatar in late February and at BaselWorld in late March.
Ian Harebottle, the CEO of Gemfields, said, “With a clear focus on increasing the scale of operations across all divisions, including product design and brand positioning at Fabergé as well as exploration and mining activity at both Kagem and Montepuez, quarterly gemstone production was up by more than 40 percent compared to the same quarter last year, providing Gemfields with another robust production quarter. The results of the two auctions held during the quarter – one of emeralds and one of rubies – demonstrated the ongoing firmness in global demand for colored gemstones and associated jewelry. We remain upbeat about the growth and development of our sector and look forward to the results of our two forthcoming auctions and the various luxury events scheduled to take place over the next few months.”


Tags: auction, emeralds, Gemfields, gemstones, Jeff Miller, mining, revenue
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