Recently Gemfields announced the results of its auction of rough ruby extracted by Montepuez Ruby Mining Limitada from the Montepuez ruby deposit in Mozambique. The auction was held in Singapore from 13th to 19th June 2016 and was the last auction the Company has planned for this financial year.
Highlights are, 1: New record auction revenues of USD 44.3 million; 2: Average realised price of USD 29.21 per carat; 3: 1,516,459 carats sold (95% by weight or 98% by market value) out of the total of 1,601,145 carats offered & 4: The six Montepuez auctions held since June 2014 have generated USD 195.1 million in aggregate revenues.
Gemfields' sixth auction of rough rubies and corundum from Montepuez saw 44 companies placing bids. The auction offered high and commercial grade rough rubies in both untreated and treated form. All treated lots were offered using industry accepted treatment techniques and on a fully disclosed basis.
The quality and quantity of the goods placed on offer was developed in response to market feedback. Growing demand for rough rubies suited to the production of high quality jewellery through to larger volume pieces. The improved reliability of supply and the consistency of the grading system introduced and applied by Gemfields continues to be well received by the Company's clients as it allows for reduced risks, improved manufacturing efficiencies and increased ability to meet consumer demand.
The auction generated record total revenues of USD 44.3 million at an average realised price of USD 29.21 per carat. Given the quality mix offered at this auction comprised a blend of varying qualities and sizes of material; a direct comparison with previous auction results is not possible. On a quality for quality basis, however, the per carat prices achieved were indicative of improved overall global demand when compared to previous auctions.
The auction results, which saw 71 of the 75 lots offered being sold, provided a high level of support for the Company's analysis and understanding of the current market conditions and demand profile. This was further supported by customer feedback received during the auction.
Ian Harebottle, CEO of Gemfields, commented: "We are pleased with the results of Gemfields' sixth Montepuez ruby auction. The prices achieved and the high percentage of goods sold fully support our analysis of the market conditions, the quality of Mozambique's rubies and the increasing levels of demand across various markets and categories.”
He added & said, “Our commitment to further building the coloured gemstone sector continues with the launch of a new global marketing campaign focusing on Mozambican rubies. The auction attendees were given a brief preview of the campaign, to be launched in London on the 22nd June. The overwhelmingly positive response underpinned the clients' confidence in Gemfields marketing efforts and is further supported in the Company's ongoing success in growing demand for Zambian emeralds.”
“The five ruby and emerald auctions Gemfields has hosted so far this financial year have yielded aggregate revenues of USD 174.4 million. A superb performance by the Company with credit due to every member of its devoted and hard working global team as well as its respective business partners in each of its host operating nations" he added.