Gemfields Singapore Ruby Auction Realizes $28.8 Million

(IDEX Online News) – Gemfields plc’s latest auction of higher and medium qualities of rubies from the Montepuez ruby deposit in Mozambique realized $28.8 million, for an average of $317.92 per carat.

The auction, which was held in Singapore, saw 45 of the 49 lots offered being sold with 90,642 of the 92,136 carats offered for sale finding buyers.

Gemfields said larger volumes of smaller size and mid-priced gems were offered in direct response to increased demand for rough rubies suited to the production of calibrated cut-and-polished gemstones.

The company noted that due to the mix of goods on offer, the results cannot be directly compared with prior auctions. On a quality-for-quality basis, however, the per carat prices achieved remained broadly consistent with those achieved at previous auctions.

“The outcome of Gemfields' fifth Montepuez ruby auction is pleasing. Demand for fine gems remains healthy and has recently been supported by a commensurate increase in demand for mid-priced and high-production-run gems,” said CEO Ian Harebottle.  

“Although some degree of softening in the demand for certain darker tone and lower quality grades remains, largely as a direct result of a short term shift in global buying patterns, this should be overcome as Gemfields' consumer education initiatives continue to reach a broader cross-section of markets and as key economies continue to strengthen.”

Gemfields' aggregate consolidated revenues from rough gemstone sales for the financial year to date stands at approximately $82.7 million.

The next auction will be of predominantly higher quality emerald from Kagem and is planned for March 2016.