Shares in British gemstone miner Gemfields went up nearly 6% on the JSE after the group’s latest ruby auction raked in $80m in revenue, extending its decade-long winning run.
Gemfields, worth about R4.5bn on the local bourse, has a 75% stake in the Montepuez ruby mine (MRM) located in the northeast of Mozambique in Cabo Delgado province. The area is known to have one of the world’s largest ruby and corundum deposits.
The latest auction of the precious gems took place from June 5-20. The miner said it sold 302,317 carats of rubies at an average price of $266 per carat. About 51 companies placed bids, Gemfields said.
Adrian Banks, Gemfields’ MD for product and sales, said the proceeds of this auction would be repatriated to MRM in Mozambique, with all royalties due to the Mozambique government being paid on the full sales price achieved at the auction.
“With the revenue from this auction up 20% since our last ruby auction in December, today’s results echo the significant rebound in market prices we reported just weeks ago for Zambian emeralds,” Banks said.
“The ruby market is clearly firing on all 12 cylinders and the step-change in market pricing which we reported in 2022 is notably enhanced. As always, we send our thanks and congratulations to our hard-working teams, our partners, our host governments and of course our clients for their support.”
He added that the auction lots were made available in Bangkok for private, in-person viewing by customers.
“Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields and which permitted customers from multiple jurisdictions to participate in a sealed-bid process.”
Since 2014, MRM has conducted 19 auctions for gemstones, bringing in $978.5m in revenue.
The mineral-rich Cabo Delgado province has been hit by an insurgency linked to Islamic State. Gemfields in February evacuated personnel from the area after an attack.
The group’s Zambian emerald mine Kagem has also proved to be a successful venture, raking in auction sales revenue of $920m since July 2009. The mine is the world’s single largest producing emerald mine. Gemfields owns 75% of it, with the balance owned by the Zambian government.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.