Pallinghurst’s 100% owned subsidiary Gemfields will collect US$54.96 million from an auction held last week – the highest figure attained at any Gemfields auction.The auction of rough rubies was held in Singapore from 6 - 10 November 2017. The rough rubies were extracted by Montepuez Ruby Mining Limitada (MRM), which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada) from the licence held by MRM in the Montepuez district of Mozambique.

Gemfields’ ninth auction of rough rubies from Montepuez saw 54 companies placing bids. The auction offered high, medium and commercial grade rough rubies in both untreated and treated form. All treated lots were offered using industry-accepted treatment and on a fully disclosed basis.

The consistency of supply and the reliability of the Gemfields grading system continues to be well received by buyers as it reduces risk, improves manufacturing efficiencies and increases ability to meet consumer demand.

The auction realised an average price of US$90.81 per carat.

The proceeds of this auction will be repatriated to MRM in Mozambique, with the production tax due to the Government of Mozambique being paid on the full sales price achieved at the auction.

The auction results, which saw 71 of the 76 lots offered being sold, provided a high level of comfort in respect of Gemfields’ understanding of the current market demand profile, which was further supported by customer feedback received during the auction.

“The strong revenues from this auction provide a solid boost to the Gemfields cash position and underscore the fact that market demand for responsibly sourced rubies from Mozambique remains in fine fettle,” says Sean Gilbertson, CEO of Gemfields.