Gem­fields’ Sin­ga­pore Ruby Auc­tion Nets $44.3 Mn

Solitaire - - SPECTRUM -

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.”

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