JOHANNESBURG (miningweekly.com) − Aim-listed Gemfields said on Monday that production for the first six months of its 2011 financial year at 18,7-million carats had exceeded its entire prior year’s production of 17,4-million carats.
A significant increase in gem prices, owing to a continuous increase in demand, especially from Asian giants China and India enabled the increase in production, with the company producing 5,9-million carats for the quarter ended December 31, 2010, and 12,8-million carats during the previous quarter.
CEO Ian Harebottle said that the company’s flagship Kagem mine in Zambia enjoyed a robust production quarter, while also delivering “phenomenal” sales.
Gemfields reported a record single auction at its December auction, delivering proceeds of $19,6-million. The company completed five auctions in the past 18 months, realising revenues of $45,8-million.
Harebottle noted that the company had now settled all bank loans and leases, which left its key Kagem asset debt free.
The company reported a cash balance of $15,6-million on December 31, 2010.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
EMAIL THIS ARTICLE