Gemfields plc (AIM: GEM) has announced the results of its auction of higher and medium qualities of rough ruby extracted by Montepuez Ruby Mining Limitada (which is 75% owned by Gemfields and 25% by local partners Mwiriti Limitada) from the Montepuez ruby deposit ("Montepuez") in Mozambique. The auction was held in Singapore from 14 to 18 December 2015.
Highlights
Auction revenues of USD 28.8 million;
- Average realised price of USD 317.92 per carat;
- 90,642 carats sold (98% by weight or 95% by market value) out of the total of 92,136 carats offered; and
- The five Montepuez auctions held since June 2014 have generated USD 150.8 million in aggregate revenues.
Gemfields' fifth auction of rough rubies and corundum from Montepuez saw 36 companies placing bids. The auction offered both higher and medium quality 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 auction generated total revenues of USD 28.8 million at an average realized price of USD 317.92 per carat. The auction results, which saw 45 of the 49 lots offered being sold, provided a clear indication with respect to the level of demand for these goods and supported the Company's decision to place both higher and medium quality rough rubies on offer.
Ian Harebottle, CEO of Gemfields, commented: "The outcome of Gemfields' fifth Montepuez ruby auction is pleasing. Demand for fine gems remains healthy and has recently been supported by a commensurate increase in demand for mid-priced and high production run gems. The prices Gemfields has achieved in this auction are in line with the Company's expectations. Only a small selection of goods remained unsold. I have no doubt that the joint efforts to continue to build and expand the reach of the colored gemstone sector means that all Gemfields' auction clients will be able to achieve healthy margins on their purchases.
Although some degree of softening in the demand for certain darker tone and lower quality grades remains, largely as a direct result of a short term shift in global buying patterns, this should be overcome as Gemfields' consumer education initiatives continue to reach a broader cross-section of markets and as key economies continue to strengthen.
The three auctions Gemfields has hosted so far this financial year, two of emeralds and one of rubies, have yielded aggregate revenues of USD 82.7 million, a superb performance by the Company with credit due to every member of its devoted and hardworking global team as well as its respective business partners in each of its host operating nations."
Larger volumes of smaller size and mid priced gems were placed on offer as a direct response to market feedback which indicated increased demand for rough rubies suited to the production of calibrated cut and polished gemstones. This demand is supported by the request of auction clients to undertake larger production runs, to improve their manufacturing efficiencies and to make the most of the broadening distribution networks available as new downstream customers join an industry now enjoying consistent and reliable supply.
About Gemfields Gemfields is the world’s leading supplier of responsibly sourced coloured gemstones, specialising in emeralds and amethysts from Zambia and rubies from Mozambique. Listed on the AIM market of the London Stock Exchange (ticker: GEM), Gemfields oversees the mining and marketing of coloured gemstones from some of the world’s finest gemstones deposits and it does so responsibly and transparently.
Positioned at the intersection of mining, marketing, exploration and ethics, Gemfields supports the delivery of a consistent supply of high-quality coloured gemstones to jewellers, manufacturers and luxury brands worldwide. In January 2013, Gemfields acquired Fabergé – aligning the world’s largest coloured gemstone producer with one of the most recognisable and iconic heritage brands of all time, to create what can readily be described as a true global colored gemstone champion.
www.gemfields.co.uk 
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