Gemfields Reports Strong $69 Million Ruby Auction Amidst Market Challenges

Gemfields, a prominent player in the coloured gemstones industry, recently concluded a successful ruby auction, generating nearly $69 million in sales
Gemfields Reports Strong $69 Million Ruby Auction Amidst Market Challenges

Gemfields announced that its June auction of rubies fetched nearly $69 million, with 97% of the offerings sold. This marks the 10th anniversary of Gemfields’ initial ruby sales from the Montepuez mine in Mozambique, known for its abundant ruby deposits. The mine is 75% owned by Gemfields and 25% by its local partner, Mwiriti.

Adrian Banks, Gemfields’ MD of product and sales, expressed pride in achieving an average selling price of $300 per carat at the auction. However, this total fell short of last year's $80.4 million and December’s $69.5 million ruby sales.

Despite challenges in the gemstone sector, including a downturn in the diamond industry due to reduced demand and increased competition from lab-made diamonds, Gemfields remains confident. The company's recent appointment of former De Beers CEO Bruce Cleaver as chair underscores its positive outlook.

Gemfields believes the market for coloured gemstones remains resilient against synthetic alternatives, noting that lab-grown rubies and emeralds have coexisted with mined gemstones for over a century without significant market displacement.

Following the announcement, Gemfields’ stock rose over 5% in London and closed 4.9% higher in Johannesburg, reflecting investor confidence in its operations and market strategy.

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