Red-letter day for Gemfields with record R1.5bn at ruby auctions

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Red-letter day for Gemfields with record R1.5bn at ruby auctions

12:29 CAT | 20 Jun 2022

Gemfields-rubies-from-Montpuez-Ruby-Mine-520-1-1

File photo: Gemfields

JSE-listed mining company Gemfields has netted a record $95.6 million (around R1.5 billion) at a range of auctions in Bangkok over the past three weeks.

The gemstones were all extracted from the Montepuez Ruby Mining Limitada (MRM) mine in northern Mozambique, in which Gemfields has a 75% stake. MRM is believed to be the most significant recently discovered ruby deposit in the world.

“The auction delivered all-time high auction revenues for any Gemfields auction and contained a selection of grades that are typically offered at MRM auctions of mixed quality rubies.”

Of the 119 lots, 112 were sold – an effective 63.5% of carats offered at an average price of $246.69 (about R3900).

There have been 16 auctions of MRM rubies since June 2014, which has generated $871.1 million (about R13 billion) in revenue.

The proceeds of the auction will be sent back to MRM, and royalties will be paid to the Mozambican government.

Last week Gemfields said that MRM’s operations have not been affected by the latest attacks by insurgents linked to the Islamic State.

Source: News24