Gemfields’ rough ruby auction realises USD 30.4 million

Gemfields plc clocked revenues worth of USD 30.4 million in its auction of rough ruby in Singapore. This was the the fourth highest ruby auction result to date. The rubies were extracted by Montepuez Ruby Mining Limitada (which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada) from the Montepuez ruby deposit ("Montepuez") in Mozambique. The auction was held from the 12th to the 16th of December 2016 and was the first ruby auction of this financial year.

The average price realised in the auction was worth USD 27.79 per carat, with 1,094,406 carats sold out of the total of 1,372,145 carats offered.

There were a total of 39 companies placing bids in this seventh auction of rough rubies and corundum from Montepuez. The auction offered high and commercial grade rough rubies in both untreated and treated form, with the treated lots were offered using industry accepted treatment techniques and on a fully disclosed basis.

Gemfields offered the rubies of quality and quantity in sync with response to market feedback which showed growing demand for rough rubies suited to the production of high quality jewellery as well as larger volume production runs, thereby allowing a broad cross-section of product to be placed on offer.

The proceeds of this auction will be repatriated to Montepuez Ruby Mining Limitada in Mozambique, with the royalties due to the Government of Mozambique being paid on the full sales price achieved at the auction.

Ian Harebottle, CEO of Gemfields, said, "We are very pleased with the results of Gemfields' seventh Montepuez ruby auction despite some of our customers being unable to attend while they adjust to the regional demonetisation policy changes they've experienced over the past few weeks. The prices achieved at this auction, combined with the high percentage of the value sold, fully support our view of ongoing solid demand for responsibly sourced Mozambican rubies across key markets and categories. The recent prices obtained for fine cut-and-polished Mozambican rubies by international auction houses further underscore the exciting trajectory for rubies from Mozambique."

Gemfields' aggregate consolidated revenues from all rough gemstone auctions for the financial year to date stands at approximately USD 41.1 million. Gemfields' auctions of rough gemstones from the Kagem emerald mine in Zambia and from the Montepuez ruby deposit in Mozambique have now generated USD 662.9 million in total revenues.