Gemfields’ Singapore Ruby Auction Nets $44.3 Mn
Gemfields’ sixth auction of rough rubies and corundum from the Montepuez ruby deposit in Mozambique, that was held in Singapore from June 13 to 19, generated record total revenues of $44.3 million at an average realised price of $29.21 per carat with 44 companies placing bids.
The company said given that the quality mix offered at this auction comprised a blend of varying qualities and sizes of material, a direct comparison with previous auction results is not possible. On a quality for quality basis, however, the per-carat prices achieved were indicative of improved overall global demand when compared to previous auctions, it noted.
Out of the total of 1,601,145 carats offered, 1,516,459 carats sold successfully (95% by weight or 98% by market value). The six Montepuez auctions held since June 2014 have generated $195.1 million in aggregate revenues. This was the last auction the company had planned for its financial year.
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 was developed in response to market feedback, Gemfields said.
The proceeds of this auction will be repatriated to Montepuez Ruby Mining Limitada in Mozambique, with the royalties due to the Mozambique government being paid on the full sales price achieved at the auction.
As of March 31 2016, when Gemfields’ provided its latest quarterly production update, total ruby and corundum extracted at Montepuez since commencement of the project stood at 20.8 million carats.
Gemfields’ aggregate consolidated revenues from all rough gemstone sales for the financial year to date stands at approximately $174.4 million. Gemfields’ auctions of rough gemstones from Kagem have now generated $621 million in total revenues.
Ian Harebottle, CEO of Gemfields, said: “We are pleased with the results of Gemfields’ sixth Montepuez ruby auction. The prices achieved and the high percentage of goods sold fully support our analysis of the market conditions, the quality of Mozambique’s rubies and the increasing levels of demand across various markets and categories.”