Mozambique rough rubies auctioned 54.8 million $ in Singapore

Gemfields plc sold 895,848 carat rough rubies from Montepuez project, in Mozambique, for 54.8 million $US during auction held in Singapore from 10 to 14 June.

The result represents 85% realization in terms of weight or 98% of market value, as 1,048,687 carats of untreated and treated rough rubies and corundum were offered in total.

The AIM listed company, owning 75% the project, saw an average price of 61.13 $ per carat during this second ruby and final auction of the financial year 2017.

“Achieving revenues of USD 54.8 million is an all-time high for any Gemfields auction and a pleasingly 24% increase to our prior auction revenue record”, CEO Ian Harebottle said.

He underscored the prices achieved at the auction, combined with the high percentage of goods sold, highlight the belief of the company in the ongoing increase in demand for responsibly sourced Mozambican rubies across key markets and jewellery categories.

“The response received from our customers was very encouraging and they share our excitement about the future potential for the ruby industry”, he added.

Gemfields Plc holds a solid portfolio of assets including 75% interest in both the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique but 100% interest in the iconic and prestigious brand of exceptional heritage Fabergé.

Kagem emerald mine is believed to be the world’s single largest producing emerald mine while Montepuez ruby mine is said one of the most significant recently discovered ruby deposits in the world.

Gemfields said all rough gemstone auctions for the financial year to date generated consolidated revenues of 132.7 million $, following the eight auction in Singapore. 

Meanwhile, auctions of rough gemstones from the Kagem emerald mine and from the Montepuez ruby deposit have generated 754.5 million $ in total revenues for the major colour gemstone producer.