Gemfields generates record sales at Montepuez auction

AIM-listed Gemfields generated record revenues from its auction of rough ruby extracted from the Montepuez ruby deposit in Mozambique.

At an auction held in Singapore from 10 to 14 June, the company sold $54.8m worth of rubies, which is an all-time high for any Gemfields auction. Of the 83 lots offered, 78 were sold with an average realised price of $61.13 per carat.

The eight Montepuez auctions held since June 2014 have generated $280.5m in aggregate revenues.

Chief executive officer Ian Harebottle said: "We are thrilled with the results of Gemfields' eighth Montepuez ruby auction. Achieving revenues of $54.8m is an all-time high for any Gemfields auction and a pleasingly 24% increase to our prior auction revenue record.

"The prices achieved at this auction, combined with the high percentage of goods sold, highlight our belief 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."

At 1020 BST, the shares were down 0.3% to 40.50p.