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Kagem to recommence focused open-pit mining

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Gemfields is pleased to announce that Kagem Mining Limited (‘Kagem’), the emerald mine in Zambia which is 75% owned by Gemfields and 25% owned by the Government of the Republic of Zambia through the Industrial Development Corporation of Zambia (‘IDC’), will shortly recommence a programme of focused open-pit mining to recover more premium emeralds.

As announced on 23 December 2024, alongside other cost cutting measures, Kagem suspended all mining from 1 January 2025 to focus on processing ore from Kagem’s significant ore stockpile utilising the upgraded processing plant.

Emerald production from the processing plant in 2025 so far, in terms of carats recovered, has been in-line with the Company’s expectations, producing a lower proportion of higher-quality or premium emeralds than direct open-pit mining methods.

Kagem’s recent auction results, including the encouraging commercial-quality auction results released on 30 April 2025, has increased management confidence in the current emerald market and the decision has therefore been taken to recommence mining of two key production points in the Chama pit, with minimal waste mining, to recover premium emeralds for Kagem’s future higher-quality auctions. The decision to recommence full scale mining will continue to be assessed as market conditions develop.

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International News

Precious Metals Recover from Lows, Await Direction Amid Middle East Tensions AUGMONT BULLION REPORT

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  • Safe Heaven Dynamics – Gold and silver have rebounded from key psychological supports near Rs.1,30,000 and Rs.2,00,000, respectively, supported by oversold conditions and short-covering. However, prices remain under pressure as Middle East tensions persist, with uncertainty around negotiations and the reopening of the Strait of Hormuz keeping inflation risks elevated. 
  • Geopolitical Developments – While US President Donald Trump indicated a delay in potential strikes and mentioned “productive discussions,” Iran has denied any ongoing talks, and Israel continues military actions. This divergence is sustaining geopolitical uncertainty and market volatility.
  • Risk off sentiment – The recent sell-off reflects a classic liquidity-driven phase, where investors liquidate profitable assets like gold and silver to meet margin calls in other asset classes. This indicates positioning-driven moves rather than a change in long-term fundamentals.

Technical Triggers  

  • Gold: Rebounded from $4100 (~Rs.1,30,000) to $4500 (~Rs.1,42,000); likely to consolidate before targeting $4750 (~Rs.1,48,000).
  • Silver: Recovered from $61 (~Rs.2,00,000) to $71 (~Rs.2,28,000); expected to consolidate before moving towards $75 (~Rs.2,40,000)

Support and Resistance

International Gold Support Level
International Gold Resistance Level
: $4100/oz
: $4750/oz
Domestic Gold Support Level
Domestic Gold Resistance Level
: Rs 130,000/10 gm
: Rs 148,000/10 gm

International Gold Support Level
International Gold Resistance Level
: $61/oz
: $75/oz
Domestic Gold Support Level
Domestic Gold Resistance Level
: Rs 200,000/kg
: Rs 240,000/kg
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