--adds detail, updates share price, includes broker comments--
A revival of the jewelled egg tradition synonymous with the Faberge name helped the brand to its best quarter in ages, owner Gemfields (LON:GEM) said today.
The Fabergé Pearl Egg, the first created by the company in the 'Imperial Class' since 1917, was sold within hours of it going on sale in Doha in March to world recognised natural pearl collector, Mr Hussain Al-Fardan.
Orders overall at the luxury jeweller rose by 64% in the three months to 31 March. Gemfields chief executive Ian Harebottle said it had received an “overwhelmingly positive” response to its new products, which include watches and jewellery.
“Fabergé has received orders from so many sources for its newly unveiled product lines and which was once again evidenced by a healthy increase in the number and value of sales orders placed."
Gemfields also notched up strong production increases at its Kagem emerald mine in Zambia and from trial mining of rubies at Montepuez, in Mozambique.
Kagem produced 9.9mln carats of emerald and beryl - almost triple thee levels of a year ago - with grades rising 79% to an average 355 carats per tonne.
Broker Investec said quarterly performance at precious stone mines are typically volatile as grades demonstrate considerable variability, however, the strong results at Kagem are good news.
Operating costs rose to US$9.8 mln (US$6.6 mln) as mining increased across the licence.
Montepuez produced 1.4 mln carats of ruby and corundum extracted (versus 1.1 mln carats) though grades fell to 18 carats per tonne from 38 carats.
Costs rose to US$4.6mln (US$2.4 mln) due to the increase in the scale of processing activity and accounting changes.
Ruby auctions have been brought forward from September and are now planned for April (alongside an emerald auction) and June as a result of strong demand.
Harebottle said the latest quarter once again delivered pleasing results for Gemfields.
“We have achieved considerable increases in production volumes at both the Kagem and Montepuez mining operations, underpinned by constant growth in market demand for these products as is evidenced by the ongoing successes achieved at our auctions.
"All of which validates our decision to expand the scale of the operations across our key sites," he added.
SP Angel analyst John Meyer also gave his verdict: "Quarterly production shows ongoing momentum in the business with Kagem emeralds particularly performing well with a significant uplift in grades.
"We look forward to the forthcoming auctions."
Gemfields shares added 2p reach to 60p.