Gemfields' Mozambique ruby auction raises $44.3m

Gemfields, a British supplier of responsibly sourced coloured gemstones, reported record total revenues of $44.3m at a recent auction of rough rubies in Singapore as the increasing quality of Mozambique gems attracts growing demand.

At Gemfields’ sixth auction of rough rubies this year, the gems averaged a price of $29.21 per carats. Over 1.5m carats were sold out of the 1.6m offered, with 44 clients placing bids.

This means that the sales comprised 95% of both the number of lots offered and also the total carats offered for sale, which analysts noted compares favourably with previous auctions uptakes have been within a range of 66% to 98% by weight.

But a comparison with previous auction results was not possible due to the varying blends of quality and sizes of the gems, the company said.

In the financial year to end-June, Gemfields has completed auctions of rough gemstones from mines in Kagam, Zambia and Montepuez and Mozambique, generating consolidated revenues of about $174.4m.

The rubies were extracted by the company's 75%-owned Montepuez Ruby Mining (MRB) in Mozambique.

Ian Harbottle chief executive said the company will launch a global marketing campaign focusing on Mozambican rubies on 22 June, in response to a positive response from clients.

Harbottle added: “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.

“The five ruby and emerald auctions Gemfields has hosted so far this financial year have yielded aggregate revenues of $174.4m. A superb performance by the company.”

Shares in Gemfields, having last week fallen to a year-to-date low just above 37p, were up 1% to 38.5p by 1100 BST on Monday.