Gemfields Mozambique ruby auction raises record 55 million dollars

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Gemfields Mozambique ruby auction raises record 55 million dollars

7:26 CAT | 15 Nov 2017

The bulk sampling by Gemfields of the Montepuez ruby deposit produced parcels of rough for auction that covered a wide range of qualities and sizes. This parcel contained 6,820 grams of untreated ruby rough.

File photo / The bulk sampling by Gemfields of the Montepuez ruby deposit produced parcels of rough for auction that covered a wide range of qualities and sizes. This parcel contained 6,820 grams of untreated ruby rough.

The London-based mining company Gemfields on Tuesday announced that last week’s auction in Singapore of rough rubies from its mine in the northern Mozambican district of Montepuez raised a company record of 54.96 million US dollars.

Gemfields holds 75 per cent of the shares in Montepuez Ruby Mining Ltd. The other 25 per cent are owned by the Mozambican company Mwiriti.

Gemfields promotes itself as the world’s leading supplier of “responsibly extracted coloured gems”. It has specialised in Zambian emeralds and amethysts but has branched out into Mozambican rubies.

Of the 76 lots offered at the auction, 71 were sold with an average price of 90.81 dollars per carat. According to a statement from the company, “the proceeds of this auction will be repatriated to MRM in Mozambique, with the production tax due to the government of Mozambique being paid on the full sales price achieved at the auction”.

This was the company’s ninth ruby auction, which in total have raised more than 335 million dollars. According to the company’s chief executive, Sean Gilbertson, “the strong revenues from this auction provide a solid boost to the Gemfields cash position and underscore the fact that market demand for responsibly sourced rubies from Mozambique remains in fine fettle”.

He added, “as always, we extend our thanks to our loyal customers, to Mwiriti Limitada – our partners in MRM – and to the government of the Republic of Mozambique for their collective efforts and support in making this auction and the outcome possible”.

Gemfields is entirely owned by the private equity company Pallinghurst following a successful takeover bid in July.

Source: AIM Moçambique