AIM-quoted Gemfields has auctioned rough rubies extracted by Montepuez Ruby Mining from the Montepuez ruby deposit in Mozambique.The Gemfields auction was held in Singapore between 10 and 14 June 2017 and was the second ruby and final auction of this financial year.
Montepuez ruby auction
Gemfields’ eighth auction of rough rubies and corundum from Montepuez saw 54 companies placing bids. The auction offered high and commercial grade rough rubies in both untreated and treated form.
All treated lots were offered using industry-accepted treatment techniques and on a fully disclosed basis.
The quality and quantity of the goods placed on offer were once again refined in 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.
[quote]The improved reliability of supply and the consistency of the Gemfields grading system continues to be well received by clients as it facilitates reduced risk, improved manufacturing efficiency and an increased ability to meet consumer demand.
The Gemfield auction generated total revenues of US$54.8 million at an average realised price of $61.13/ct. Given that the quality mix offered at this auction comprised a blend of varying qualities and sizes of material, a direct top-line comparison with the results of previous auctions is not feasible.
On a quality-for-quality basis however, the per/ct prices reflected positive demand and were in line with the Gemfields’ experiences at recent global trade events.
The auction results, which saw 78 of the 83 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 proceeds of this auction will be repatriated to Montepuez Ruby Mining in Mozambique, with the production tax due to the Government of Mozambique being paid on the full sales price achieved at the auction.
Gemfields' aggregate consolidated revenues from all rough gemstone auctions for the financial year to date currently stand at approximately $132.7 million.
“We are thrilled with the results of Gemfields’ eighth Montepuez ruby auction. Achieving revenues of $54.8 million is an all-time high for any Gemfields auction and a pleasingly 24% increase to our prior auction revenue record,” highlights Gemfields CEO, Ian Harebottle.
“The prices achieved at this auction, combined with the high percentage of goods sold, highlight our belief in the ongoing increase in demand for responsibly sourced Mozambican rubies across key markets and jewellery categories,” he continues.
“The response received from our customers was very encouraging and they share our excitement about the future potential for the ruby industry,” adds Harebottle.
Feature image credit: Gemfields