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RAPAPORT... Gemfields reported that production of emerald and beryl from the Kagem mine in Zambia jumped 175 percent year on year to 9.9 million carats in the third quarter that ended on March 31. An auction of predominately lower-quality rough emeralds generated revenue of $14.5 million in February. In addition, the company generated approximately $450,000 from the sale of high-quality Kariba amethysts. Ruby production from the company's Montepuez operation in Mozambique rose 27.2 percent to 1.4 million carats. Gemfields didn't conduct a ruby auction during the quarter, but plans to hold a sale of lower-quality rough ruby and corundum in April. The company estimated that Fabergé's sales, whether or not payments had been received on March 31, rose 64 percent and that operating costs were flat. During the quarter, the luxury brand sold The Fabergé Pearl Egg for an undisclosed sum to Hussain Alfardan at the Doha Jewellery & Watches Expo in Qatar. The jewel was the first egg created in the brand's Imperial Class category since 1917, according to Gemfields. On March 31, Gemfields held cash and cash equivalents of $27.9 million and outstanding debt of $35.5 million, which includes an outstanding balance due of $20 million from Kagem. Ian Harebottle, the CEO of Gemfields, said, “This quarter has once again delivered pleasing results for Gemfields. We have achieved considerable increases in production volume at both the Kagem and Montepuez mining operations, underpinned by constant growth in market demand for these products, as is evidenced by the ongoing successes achieved at our auctions, all of which validates our decision to expand the scale of the operations across our key sites. These results are further supported by the overwhelmingly positive response Fabergé has received from so many sources for its newly unveiled product lines and which was once again evidenced by a healthy increase in the number and value of sales orders placed.”
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