Editor’s Note
Gemfields Group has set a new benchmark in the gemstone industry, achieving a record $149 million in rough emerald sales this year. The highlight was the sale of the remarkable 37.5 kg Kafubu Cluster, underscoring the enduring demand for exceptional natural treasures.
The Gemfields Group has achieved a record sum of USD 149 million in rough emerald sales this year. In the final auction round of the year, the more than 37 kg Kafubu Cluster also found a buyer.
In November, 37 lots with a total weight of 426,000 carats went under the hammer, of which 34 were sold. The star of the auction was, of course, the Kafubu Cluster. This extraordinary gemstone, weighing 37,555 kg or 187,775 carats, was discovered in March 2020 at the Kagem mine in Zambia, the world’s largest emerald producing site. In addition to its sheer size, the gemstone is characterized by its intense, luminous color. It consists of a multitude of individual crystals of varying sizes and qualities. Several tens of thousands of carats of emeralds – faceted, as cabochons, or beads – could be cut from the Kafubu. The plans of the new owner – who it is and how much the unique gemstone was worth to them was not disclosed by Gemfields – remain to be seen. It is also possible that the mineral rarity will remain in its original form and not be processed.
commented Adrian Banks, Managing Director of Product & Sales at Gemfields, on the November auction result of USD 30.8 million. He pointed out, however, that comparisons between individual auctions are only meaningful to a limited extent due to the very different offerings in terms of size and quality each time. Overall, however, 2022 has been very successful.
Banks said happily.
Until the discovery of emerald deposits in Zambia, Colombia and Brazil were the main suppliers of the precious green gemstones belonging to the beryl group. The first beryl finds in Zambia date back to 1928, but mining by local prospectors did not begin until the 1970s, and on a larger scale from the turn of the millennium. With the entry of the British mining company Gemfields Resources PLC in 2004, systematic geological investigation of the region began using state-of-the-art methods. The results were very positive, as was the market potential, so the Gemfields Group acquired a 75% majority stake in the Kagem mine in 2008. The mine had already been in operation for almost 20 years at that time, but was in poor economic condition due to a combination of poor management, theft, shareholder conflicts, and lack of capital. This changed under the new main owner (25% of the mine is owned by the Zambian state). The mine is now profitable and accounts for around 25% of global emerald production. For the first half of 2022, Gemfields reported a total volume of 25.61 million carats, of which 172,000 carats were emeralds of premium quality. Since the first auction in 2009, the Gemfields Group has achieved a total turnover of nearly USD 900 million with Kagem emeralds.
On the market, emeralds from Colombia still command the highest prices, but their relatives from Zambia are catching up. The buyer interest in the rough and cut gemstones, which are distinguished by their special color – the green has a slightly bluish tint – is largely credited to Gemfields. The company regularly organizes workshops with leading gemstone experts and, in cooperation with jewelry manufacturers and designers, including the group-owned brand Fabergé, releases emerald collections.
In addition to the Kagem mine, the Gemfields Group has also held a majority stake (75%) in the Montepuez mine in Mozambique, an important source of rubies, since 2014. In the first half of 2022, 1.869 million carats of rough stones were mined, of which 55,000 carats are premium rubies. Including the last auctions at the end of November/beginning of December, total ruby sales since June 2014 reached USD 898.1 million.