Gemfields Group, listed on the London Stock Exchange, reported total auction revenues of $68.7 million from its June auction of rough rubies. These rubies were extracted from the Montepuez ruby mine in Mozambique.
In the auction, 94 out of 97 lots were sold, totaling 217,044 carats. The average price achieved was $316.95 per carat. Montepuez Ruby Mining (MRM), which is 75% owned by Gemfields and 25% by Mozambican partner Mwiriti, extracted the rubies.
Gemfields confirmed that the auction proceeds will be fully repatriated to MRM in Mozambique. All royalties due to the Mozambican government will be paid based on the full sales price achieved at the auction. Since June 2014, the 22 auctions of MRM gemstones have generated a total revenue of $1.12 billion.
“This auction marks the tenth anniversary of our first auction in June 2014,” said Adrian Banks, Gemfields’ products and sales MD. “We are pleased with the strong result, demonstrating the confidence our loyal customers have in our product offering and auction platform. While the industry faces some challenges, partly due to a softening market in China, this result provides comfort to our stakeholders.”
Banks expressed gratitude to the hardworking team at MRM, their partners Mwiriti, and the Mozambican government. “Their support makes these results and achievements possible,” he added.
The auction lots were available for private, in-person viewings by customers in Bangkok. Following the viewings, the auctions took place via an online platform specifically adapted for Gemfields. This platform allowed customers from multiple jurisdictions to participate in a sealed-bid process.
Gemfields’ success in this auction underscores the robust demand for high-quality rubies, despite current market challenges. The company’s innovative approach to online auctions has broadened its reach, attracting bidders from around the world.
The Montepuez mine is one of the world’s largest ruby mines. Its high-quality stones are sought after globally, contributing significantly to Gemfields’ revenue. The mine’s output and subsequent auctions highlight the critical role of Mozambique in the global gemstone market.
Gemfields’ continued investment in technology and customer engagement has positioned it well in the competitive gemstone industry. The company’s ability to adapt to market conditions and maintain strong sales results is a testament to its strategic approach and market understanding.
Gemfields’ June auction results showcase the enduring appeal of Mozambican rubies. With $68.7 million in revenues, the auction marks a significant milestone in the company’s history. This success, achieved through innovative auction methods and strong customer relationships, highlights the resilience and potential of the gemstone market.
Source: Mining Weekly
