Kagem produces huge quantity of emeralds

Desperate housewife movie star Eva Longoria wearing an emerald from Zambia

Emerald producer Gemfields (LON:GEM) posted a maiden annual profit of US2.6 million and said the new year had started well.

The result is in marked contrast to the US$201.4 million loss of the same time last year, although that figure was distorted by the writedown of the value of the Kagem Mine in Zambia.

The group is on a sound financial footing with US$2.8 million in the bank, while the value of its stock of stones is US$16.5 million.

Sales in the 12 months to June 30 were US$19.9 million, up sharply from US$815,456 previously.

Giving an upbeat assessment of prospects, Gemfields said July was a bumper month with the company’s Kagem Mine producing 3.9 million carats in July – which was a record month. 

Gemfields is one of the world´s leading coloured gemstone companies. With a strong focus on Zambian emeralds, Gemfields mines, processes and markets both rough and polished gemstones internationally.

The momentum has carried through to August and Septmeber.

Kagem also yielded the 6,225 carat `Insofu’ rough emeralds and beryl has increased to 96 cents.

Chief executive Ian Harbottle said: “Considering the extent of the challenges that we have faced over the past year, the vast number of new projects and the strategic changes that we have implemented across all divisions within the group, I am rather pleased with our results and what has been achieved.

“We are now well on our way to positioning Gemfields as a market leader within the premium coloured gemstone sector. 

“This is attested to by the recognition and respect that we have received from our colleagues within our industry and the number of exciting opportunities that we are now faced with. I look forward to embracing the year ahead supported by my team and in conjunction with our industry partners.”

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