Gemfields Auction of Mozambican Rough Rubies Fetches Record Revenue of US$ 71.8 million

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gemfields

Pallinghurst Ltd and its subsidiary, Gemfields Ltd announced that revenue from the most recent auction of Mozambican rough rubies held in Singapore from June 5-9, 2018 fetched record revenues of US$ 71.8 million, an all-time Gemfields auction record.

In a statement, the Company reported that of the 86 lots offered, 82 were sold (95%), with an average price of US$ 122 per carat, a new record for Gemfields’ mixed quality ruby auction. It added that 588,656 carats sold out of the 629,893 carats offered (93%). The auction offered high, medium and commercial grade rough rubies exclusively in untreated form. This was the tenth auction of rough rubies from Montepuez mine in Mozambique, held by the Company; together these have generated US$ 407 million in aggregate revenues.

The rubies were extracted under the licence held and operated by Montepuez Ruby Mining Limitada (MRM), which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada.

While the results of each auction are not always directly comparable due to variations in the mix of goods offered, on a quality-for-quality basis, Gemfields said, the per carat prices achieved at this auction demonstrated particularly strong demand. This suggests that Mozambican rubies are having a moment, and might just be the next big jewellery trend, the statement noted.

Gemfields reported that 51 companies placed bids, and that the consistency of supply and the reliability of its grading system continues to be well received by buyers as it reduces risk, improves manufacturing efficiencies and aids their ability to meet demand for larger orders.

Sean Gilbertson, CEO of Pallinghurst and Gemfields, commented, “The health of market demand for Mozambican rubies mined by MRM and marketed by Gemfields is amply demonstrated by these record-breaking auction results.”

The Company said that the proceeds of this auction will be fully repatriated to MRM in Mozambique, with the production tax due to the Government of Mozambique being paid on the full sales price achieved at the auction.

News Source : gjepc.org

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.

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