Type Public limited company Industry Mining and Jewellery Headquarters United Kingdom Revenue 171.4 million USD (2015) Net income 12.3 million USD (2015) | Traded as LSE: GEM Products Coloured gemstones Number of employees 1,334 Founded 2004 | |
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Key people Ian Harebottle (CEO)
Graham Mascall (Chairman) Operating income Stock price GEM (LON) 42.07 GBX +0.82 (+1.99%)10 Mar, 5:07 PM GMT - Disclaimer Subsidiaries Ratnapura Lanka Gemstones (Pvt) Limited | ||
Gemfields plc boss hopes to lift kagem ouput to 40mln carats
Gemfields plc is an AIM-listed multinational natural resources company headquartered in London, United Kingdom, and is one of the world's leading supplier of responsibly sourced coloured gemstones. The company specializes in the mining, processing and sale of coloured gemstones, in particular emeralds, rubies and amethysts. The group owns the Kagem emerald mine in Zambia, the single largest emerald mine in the world, the Montepuez ruby deposit in Mozambique, the most significant ruby deposit in the world, and the Kariba amethyst mine in Zambia. Gemfields produces around 25% of the world’s emerald supply and 70% of the world's ruby supply.
Contents
- Gemfields plc boss hopes to lift kagem ouput to 40mln carats
- Kagem Emerald Mine
- Montepuez Ruby Deposit
- Kariba Amethyst Mine
- Faberg
- Oriental Mining
- Sri Lanka
- New Projects
- Marketing of Coloured Gemstones
- Corporate responsibility
- Shareholders
- References
In July 2009, Gemfields commenced a formal auction programme for Zambian emeralds mined at Kagem. To date, the Company has held 22 auctions of rough emerald and beryl produced from Kagem which have generated revenues totalling USD 426 million. The Company has also held two traded emerald auctions (not obtained directly from the Company's own mining operations) which generated revenue of USD 22.0 million.
In June 2014, Gemfields held an inaugural ruby and corundum auction in Singapore from its Mozambique operations. A total of 1.82 million carats were sold which generated total auction revenues of USD 33.5 million.
The company is adamant about the traceability of its stones and has implemented a “mine and market” strategy by which the company consistently brings their emeralds and rubies to the market and is complemented by determined marketing and promotional campaigns to further increase confidence and awareness of coloured gemstones.
Kagem Emerald Mine
Gemfields owns the Kagem emerald mine in Zambia which is responsible for 25% of the world's emerald supply. The pit is around 110 metres deep, exposing one concordant and four discordant pegmatites over a strike length of 1000 metres. Gemfields own 75% of the mine while the remaining 25% stake is held by the government in Lusaka.
The Kagem mine is the first emerald mine in the world to be assessed against Eco-Age’s Green Carpet Challenge (GCC) Principles of Sustainable Excellence.
Montepuez Ruby Deposit
Gemfields acquired a 75% stake in the highly prospective Montepuez ruby deposit in Mozambique in February 2012. The Monepuez ruby deposit is located in the northeast of Mozambique in the Cabo Delgado Province. Covering approximately 33,600 hectares, it is believed to be the most significant recently discovered ruby deposit in the world. The inaugural auction in June 2014 of rough ruby and corundum from the deposit yielded revenues of USD 33.5 million. The 6 Montepuez ruby auctions held since June 2014 generated USD 195.1 million in aggregate revenues.
Important rubies, found in the Montepuez deposit, are the Rhino Ruby (40.23 carats) and the Eyes of the Dragon (45 carats).
Kariba Amethyst Mine
Gemfields owns a 50% stake in the Kariba mine in southern Zambia, the world’s largest amethyst mine. The deposit produces an estimated 90% of all amethyst originating from Zambia. The mine covers an area of 396 hectares, and is located in the southern part of Kalomo District, Zambia close to Lake Kariba (approximately 550 kilometres south-southwest from the Kagem emerald mine).
Fabergé
Gemfields acquired a 100% interest in Fabergé Limited on 28 January 2013 with the intention to create a globally recognised coloured gemstone champion. The all-share deal valued the luxury brand at approximately USD 142 million. Fabergé was previously owned by Gemfields’ majority shareholder Pallinghurst Group after being bought out from Unilever for USD 38 million in 2007. In a statement the company said that Fabergé will provide Gemfields with direct control over "a high-end luxury goods platform and a global brand with an exceptional heritage".
Oriental Mining
Gemfields owns 100% of Oriental Mining SARL, a company incorporated in Madagascar. Oriental has 15 exploration licences covering emeralds, rubies, sapphires, tourmalines and garnets in Madagascar. In addition, Oriental has the right to five further exploration licences that are pending transfer approval from the Madagascan Ministry of Energy and Mines.
Sri Lanka
In September 2014, Gemfields entered into a joint venture with East West Gem Investments Limited ('EWGI'), a Jersey registered company, in order to progress opportunities in the Sri Lankan sapphire and gemstone sector via three Sri Lankan subsidiaries which will be 75% and 25% held by Gemfields and EWGI respectively. The joint venture agreements seek to develop the broader exploration, mining and sorting infrastructure in Sri Lanka in order to promote a sustainable, transparent and globally competitive gemstone sector.
The joint-ventures have acquired sixteen exploration licences (covering diverse minerals) in Sri Lanka. The goal is to deploy the exploration and gemstone experience with a view to replicating the successes achieved in Zambia and Mozambique.
New Projects
Gemfields has entered into binding agreements to acquire controlling interests in two emerald projects with operations and prospects located predominantly in the Boyacá State in Colombia. Gemfields has also acquired 75% of Web Gemstone Mining which holds an emerald exploration licence covering a total concession area of 200 km² and potentially hosts emerald mineralisation within a geological lineament that stretches over 45 kilometres.
Marketing of Coloured Gemstones
Gemfields partnered with Bergdorf Goodman to launch their jewellery salon with 18 designers in the likes of Verdura, David Webb, Pomellato, Stephen Webster who created a jewellery collection featuring Zambian emeralds and Mozambican rubies. Chopard and Eco-Age partnered with Gemfields for their Green Carpet Collection launched at Cannes Film Festival 2016 by Julianne Moore followed by a showcasing at the 73rd Venice International Film Festival by Bianca Balti and Gemma Arterton.
Mila Kunis was the global brand ambassador of Gemfields. In 2016, Gemfields associated with Sophie Cookson, Aditi Rao Hydari and Grace Guozhi for a series of short films to highlight the emotional significance of rubies in different cultures.
Corporate responsibility
Gemfields committed to dedicate at least 1% of the gross sales revenue to charitably causes. These include local developments of the areas around the mines as well as supporting charity projects together with partners like Mary Fisher, Marina B and the Project Nanhi Kali.
During the mining process, the mines are getting prepared for backfilling, to reduce the environmental impact and allow for faster ecological restoration.