Mustang Resources’ inaugural Ruby auction disappoints bidders

Mustang Resources (MUS) was touted to be the next biggest supplier of ethically mined rubies with its maiden auction being held from 27 - 30 October 2017 in Port Louis, Republic of Mauritius.

However, the news coming from the Day 1 of the auction does not seem to be all positive. The company had 400,000 carats on offering. In all, 110 lots were offered on 21 tables and 40 companies participated in this acution.

One of the disappointed participant said, “Inaugural MUS’ Montepuez Ruby Project disappointed bidders as quality of rough was very low.”

"Goods are not graded, it’s really of low quality. As per estimate, goods worth US$ 500,000 are only expected to sell. It was very unprofessionally managed, too. A much hype of second contender in ruby auction business seems to have nosedived,” said another participant on condition anonymity.

Following the delisting of Gemfields, MUS was to said to emerge as the only listed ruby miner in the world.

Besides, with Chinese consumers opening up to be the new potential market for gemstones was said to be very helpful to MUS to gain an important supplier’s position.

MUS had a lot at stake with the inaugural auction as the company’s expansion plans are afoot. The expansion is expected to increase the available processing capacity of Montepuez from ~432,000tpa to ~2Mtpa. The new plant and upgrades to the existing plant are expected to be installed and commissioned by July 2018, ensuring the Company has sufficient capacity to target 1,000,000 carats of ruby sales in CY2018 via two tenders.

Disclaimer: Publisher/Reporter has no intention to misreport/represent false facts. Report has been filed on the basis of inputs from market sources.