Gemfields concludes first auction of Mozambican rough ruby and corundum

Gemfields completed its inaugural auction of Mozambican rough ruby and corundum from Montepuez Ruby Mining Limitada, amidst a strong participation, strong bidding and sales results. The auction attracted industry attention for its offering of rough rubies and for the auction platform being Gemfields’.

The auction held in Singapore from 12 -17th June 2014, resulted in 57 (1.82 million carats) of the 62 (2.03 million carats) lots of rubies and corundum being sold. The gross auction revenues were worth USD 33.5 million, while the overall average value achieved was USD 18.43 per carat.

Ian Harebottle, CEO of Gemfields, commented: " The extension of our transparent and well-regarded auction platform into the ruby trade has been very well received by the market, with an expanded customer base now having access to reliably supplied and consistently graded rough emeralds, beryl, rubies and corundum.” He added that the proceeds from the auction will be fully repatriated to Mozambique, to Montepuez Ruby Mining Limitada, in which Gemfields owns 75 percent and with all royalties due to the Government of Mozambique being paid on the full sales price achieved at the auction. He further said that, “We were pleased that representatives of the Mozambican government were able to visit the auction in Singapore, to witness first-hand what is a landmark achievement for the Mozambican gemstone sector.”

There was a healthy participation from Thailand, some being first timers, apart from buyers from New York, Jaipur, Germany and Israel. This cross-pollination of clients and gemstone specialists is expected to further Gemfields’ vision for growth and development of the coloured gemstone sector internationally.

According to Ian Harebottle, revenues from this auction added to the revenues derived during this financial year from rough emerald and beryl sales, indicates aggregate consolidated revenues (from rough gemstone sales) in excess of USD 143 million.