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The 40.23-carat Rhino Ruby, discovered at Gemfield's Montepuez mine in Mozambique.


Hollywood actresss Mila Kunis, the public face of Gemfield's advertising campaigns.

  With higher revenues and profits, gemstone producer giant considering Colombian emerald mine


March 30, 2015


With an improving bottom line, Gemfields Plc, the world's largest rough gemstone supplier, is reportedly looking to buy a mine in Colombia, and so expand its range of emerald output, alongside its most important producing facility, the Kagem mine in Zambia, in which it owns a 75 percent share.

"We've increased the number of people, and the amount of energy and time we can dedicate to something new," Chief Executive Officer Ian Harebottle said. "I'm hopeful we should be able to finish something this calendar year."

Colombia's total emerald output was 2 million carats in 2014, a decline of 25 percent from 2013, according to the country's mining agency. In contrast, during the second half of last year alone, the Kagem mine produced 12.1 million carats of emerald and beryl, up from 10.4 million carats during the same six-month period in 2013.

Gemfields reported that its core earnings more than tripled during the second half of 2014, with pre-tax income rising to $61.7 million, from $18 million during the same period in 2013.

The company, which operates emerald mines in Zambia and ruby mines in Mozambique, and is also developing a sapphire production capacity, reported that revenues for the six months to the end of December rose to $103.4 million, from $65.7 million a year earlier.

"Gemfields has delivered an exceptional first half with a 57 percent increase in revenues to $103.4 million, record-breaking auction results and a significant uplift in gemstone production across each of our operations," stated Harebottle. "This solid performance comes at a time when the mining sector has faced various challenges, but I am pleased to report that demand for Gemfields' responsibly-sourced colored gemstones and the opportunity for sustained growth remains significant."

In August 2014, an auction of predominantly lower-quality rough emeralds and beryl was held in Lusaka, Zambia, and generated revenues of $15.5 million. In November, an auction of predominantly higher-quality rough emeralds raised $34.9 million.

At the company's 75-percent owned Montepuez ruby mine in Mozambique, production totaled 6.3 million carats of ruby and corundum during the period, up from 5.1 million carats in 2013. Gemfields' ruby auction in December 2014 included the 40.23-carat "Rhino Ruby," discovered at Montepuez, and recorded the highest revenues ever recorded for a Gemfields auction, $43.3 million.

Gemfields recently entered into a joint venture with East West Gem Investments Limited to develop opportunities in the Sri Lankan sapphire and gemstone sector.

In January 2013, Gemsfield purchased a 100 percent of the legendary French-Russian jewelry brand Faberge.

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