Gemfields Kagem Emerald Mine Showed Solid Annual Growth Despite Conflict With Zambian Government

Coomi 20K yellow gold with Gemfields’ Zambian emeralds, 120.34 carats and diamonds, 5.21 carats.

Production at the Gemfields Kagem emerald mine in Zambia increased 42 percent to 29.99 million carats for the 12-month period ended in June.

The average grade for the year increased 38 percent to 283 carats per ton, the company said Monday through the Proactive Investors website. Meanwhile, production costs fell 26 percent in the year.

Gemfields is a colored gemstone exploration, mining and marketing company. The Kagem mine is the London-listed company’s biggest asset and it provides nearly all of its revenue, even though it has interest in other colored gemstone mines. It owns a 75-percent share of the Kagem mine with the Zambian government owning the remaining 25 percent.

One of Gemfields other mines is the Montepuez ruby deposit in Mozambique. The company said it is on track to hold its first auction of rough rubies in the first quarter of 2014.

Gemfields also owns Fabergé, which it fully acquired in January. The company said the luxury jewelry brand achieved a record number of unit sales for the year.

A sale of lower quality emeralds in April netted $15.2 million, Gemfields said. Not included in the annual results was its latest auction of higher quality emeralds, held in the Zambian capital of Lusaka. This brought in revenues of $31.5 million, the second highest total ever for an auction of its kind.

The auction was originally scheduled in June in Singapore but pressure from the Zambian government to move the auction to Zambia caused the auction to be postponed until July, after the reporting period. Where to hold auctions has been a source of debate since April when the government of Zambia, Gemfields business partner, issued a directive for Gemfields to hold its auction within the country’s borders, citing capital flight.

Ian Harebottle, Gemfields CEO, said through Proactive Investors that communication between the two parties is now “much, much better” and more interactive.

However, Harebottle said the company continues “to seek guidance and to interact with the Government of Zambia.” Gemfields argues that it needs to sell Kagem emeralds at places that will likely get the most interest and the best price.

“While the two auctions held in Lusaka this year have certainly been successful, the key question, of course, remains what they would have generated had they been held abroad (where competing and undermining sources of supply, frequently illegal, are not readily available to our customers) and their potential impact on the long term growth of this sector,” he said.

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Jane Austen’s Ring Attracts the Attention of Kelly Clarkson, An English Museum and the British Government

A gold and turquoise ring once owned by Jane Austen and purchased by Kelly Clarkson. Photo credit: Sotheby's

In July, 2012, American Idol winner Kelly Clarkson successfully bided for a gold and turquoise ring once owned by the famed novelist Jane Austen at Sotheby’s London auction. She paid dearly for the ring, spending 152,450 pounds ($235,654), approximately five times the high estimate of approximately $45,000. The sale seemed legal and binding but then the British government swooped in, suddenly declaring it a national treasure and refusing to release the ring until the Jane Austen's House museum can raise enough money to match Clarkson’s winning bid, according to the Associated Press.

The museum at Austen's former home in Chawton, southern England, said Monday it has raised 103,200 pounds ($160,000), nearly all of it from one anonymous benefactor. It has until December to raise the remaining funds, according to the AP. Clarkson has agreed to sell the ring if the museum raises the funds. The museum did try to purchase the ring at the Sotheby’s auction but lost to the singer.

The ring’s origins are somewhat mysterious, according to reports. Some Austen fans suspect it was a gift from Tom Lefroy, an Irishman who may have been romantically involved with Austen. Austen corresponded with Lefroy during the time that she wrote her most famous novel, Pride and Prejudice. Some speculate — as dramatized in the 2007 film Becoming Jane – that Lefroy was the inspiration for Austen’s most memorable character, Mr. Darcy. However, at least one literature expert, Gabriel Heaton, believes that it may have been a gift from Austen’s brother Henry, who acted as her literary agent. The ring is found in a box from a jeweler in the City of London, where Henry worked as a banker.

Austen left the ring to her sister Cassandra and it remained in the family until the auction.

Jane Austen (1775-1817) was one of as one of the most widely read writers in English literature, as the author of several romantic novels revolving around Regency-era families of the lower English gentry. 

The British government’s heavy handling of this situation is reminiscent of this scene from the movie Pirate Radio. 

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