Gemfields Posts Record Results at Ruby Auction

The 40.23-carat rough ruby from Montepuez sold at the latest Gemfields auction.

(IDEX Online) – Gemstones miner Gemfields plc said that revenues of $43.3 million from the auction of mostly higher-quality rough ruby from the Montepuez Ruby Mining Limitada, in which it has a 75 percent interest, from the Montepuez ruby deposit in Mozambique, are the highest ever achieved at its auctions.

The auction, held in Singapore from December 3 to 8, was Gemfields’ second sale of rough ruby, with the average price per carat of $689 being the highest ever achieved at any of its auctions. The sale was 74 percent sold, with the company selling 62,936 carats out of 85,491 carats on offer.

Gemfields’ said that 50 companies bid in what was its second ruby auction, the first having been held in June 2014. The two Montepuez auctions held this year have raised $76.8 million.

Due to the focus on higher-quality rubies, all lots were offered on an untreated basis. This contrasts with the June auction where Gemfields offered both untreated and treated material, with all of the treated lots being offered using industry-accepted treatment techniques and on a fully disclosed basis.

The overall diversity of auction attendees increased noticeably with Austria, China, Germany, India, Israel, Japan, Sri Lanka, Thailand, the United Kingdom and the USA all represented. Refinements made to Gemfields’ pioneering grading system for rough rubies since the June 2014 auction were praised by auction participants, the miner said in a statement.

The auction included a 40.23-carat rough ruby from Montepuez which was discovered last month. The sale price for the ruby was not disclosed.

The proceeds of the auction will be fully repatriated to Montepuez Ruby Mining Limitada in Mozambique, and all royalties due to the government of Mozambique will be paid on the full sales price achieved for the gems.

The next Gemfields auction of material from Montepuez will be of mostly lower-quality ruby and corundum and will take place before June 30, 2015.

The ruby auction was the third Gemfields auction of the current financial year which ends on June 30, 2015. The first and second auctions of the current financial year were of predominantly higher (in August) and lower (in November) quality emerald and beryl from the Kagem emerald mine, respectively. Gemfields’ aggregate consolidated revenues from rough gemstone sales for the financial year to date is approximately $94 million. Gemfields’ 19 auctions of rough gems from Kagem and Montepuez have generated $387.4 million in total revenues.