JOHANNESBURG (miningweekly.com) – Aim-listed Gemfields’ 75%-owned Kagem mine, in Zambia, produced 4.5-million carats of emerald and beryl during the quarter ended March 31.
This was three-million carats less than the same period last year, with Gemfields attributing the lower output to inclement weather during the period.
It is also expected to contribute to a reduction in guided output for the full year to 20-million to 25-million carats.
Meanwhile, ruby production at the company’s 75%-owned Montepuez mine, in Mozambique, reached 1.2-million carats, with an average grade of 7 ct/t, owing to the lower-grade but higher-value ore being processed.
The amount of premium quality rubies recovered increased by 92%.
"The quarter under review delivered mixed results; however, we have seen demand for coloured gemstones increasing as the sector strengthens,” CEO Ian Harebottle said in a statement on Friday.
He pointed out that Montepuez had performed well, with a significant increase in the quantity of ore and the quality of the gemstones produced.
Faberge sales orders, meanwhile, declined by 39% during the quarter under review, despite the number of sales transactions having increased by 63%.
Harebottle further pointed out that Gemfields has decided to withdraw from the Coscuez transaction in Colombia and its operations in Sri Lanka.
“The company believes its portfolio of high-quality assets in Africa, as well as other potential expansion opportunities within Zambia, Mozambique and Ethiopia, are all likely to deliver considerably higher returns with shorter payback periods than some of the other jurisdictions it had previously been evaluating,” he said.