Wrap Text
Ruby Auction Results
Gemfields Group Limited
Incorporated in Guernsey. Guernsey registration Number: 47656.
South African external company registration number 2009/012636/10
Share code on JSE:GML / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Company")
Ruby Auction Results
LONDON, 8 APRIL 2021
Gemfields is pleased to announce the results of a ruby auction comprising a series of seven sequential mini-
auctions held during the period 15 March – 8 April 2021. The auction contained a selection of grades that
are typically offered at Montepuez Ruby Mining Limitada’s (“MRM”) auctions of mixed quality rubies.
Selected lots were made available for in-person and private viewings by customers in Bangkok, Dubai and
Jaipur. 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.
Operations at MRM were suspended in April 2020 as a result of the Covid-19 pandemic and remained
suspended until March 2021 in order to preserve cash during difficult market conditions. It is expected that
mining operations at MRM will ramp back up to full-scale by the end of April 2021.
The rough rubies sold at the auction were all extracted, prior to April 2020, from the mining licence held
and operated by MRM (which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada).
Highlights – March & April 2021 Ruby Auction
- Operations at the MRM ruby mine were suspended from April 2020 to March 2021
- All rubies sold at this auction were mined prior to April 2020
- Total auction revenues of USD 58.9 million, the third highest auction result to date
- Average price of USD 171.33 per carat
- Of the 94 lots offered, 89 were sold (95%)
- 47% of the carats offered at the auction were sold
The auction saw 52 companies placing bids and generating total revenues of USD 58.9 million with an
overall average value of USD 171.33 per carat. The auction saw 95% of the number of lots, and 47% of the
offered carats, being sold.
The results of the five most recent mixed quality ruby auctions are summarised in the table below (and
earlier results are available at www.gemfieldsgroup.com):
Gemfields Group Limited, Royal Chambers, St Julian’s Avenue, St Peter Port, GY1 4HP, Guernsey
T +44 (0)1481 731 554
gemfieldsgroup.com
AUCTION Mar-Apr ‘21
RESULTS Jun ‘18 Dec ‘18 Jun ‘19 Dec ‘19 AUCTION
(RUBY & AUCTION AUCTION AUCTION AUCTION (7 sequential
CORUNDUM) mini-auctions)
5-9 Jun 10-14 Dec 11-15 Jun 10-14 Dec 15 Mar – 8 Apr
Dates 2018 2018 2019 2019 2021
Location Singapore Singapore Singapore Singapore Various/Online
Rough Ruby Rough Ruby Rough Ruby Rough Ruby Rough Ruby
(Higher, (Higher, (Higher, (Higher, (Higher,
Medium and Medium and Medium and Medium and Medium and
Type Commercial Commercial Commercial Commercial Commercial
Quality), no Quality), no Quality), no Quality), no Quality), no
Corundum Corundum Corundum Corundum Corundum
Carats offered 629,893 685,363 978,197 1,158,114 726,610
Carats sold 588,656 655,623 962,211 927,130 343,952
No. of lots offered 86 90 90 104 94
No. of lots sold 82 88 84 91 89
Percentage of lots 95% 98% 93% 88% 95%
sold
Percentage of lots 93% 96% 98% 80% *47%
sold by weight
Total sales realised USD 71.8 USD 55.3 USD 50.0 USD 71.5 USD 58.9
at auction million million million million million
Average per carat USD 122.03 USD USD USD USD
sales value /carat 84.32/carat 51.99/carat 77.12/carat 171.33/carat
(*) Specific attention is drawn to the fact that one lot of 76,343 grams (representing some 53% of the total
weight offered) remained unsold at the most recent auction. As a result, the average price per carat realised
at the most recent auction is considerably higher than it would have been had this lot also been sold. The
specific auction mix and quality composition of the lots offered at each auction vary in characteristics such
as size, colour and clarity on account of variations in mined production and market demand. Therefore, the
results of each auction are not always directly comparable.
As a result of the Covid-19 pandemic, MRM realised no revenue in 2020. Nonetheless, no redundancies
have been made at MRM since the outbreak of the pandemic and the circa 1,400 jobs provided by MRM
have been protected during what is a critical time for the province of Cabo Delgado, where MRM is based.
Today’s ruby auction result provides much-needed income for the ongoing protection of those jobs and the
many families that depend on the associated salaries. The auction also brings essential tax income for
Mozambique at a time when the province of Cabo Delgado is in dire need of support. To date,
approximately 23% of MRM’s aggregate revenues have been paid to the Government of Mozambique in
the form of mineral royalty and corporation tax. MRM has been the largest taxpayer in the Cabo Delgado
province in each of the six years from 2014 to 2019.
MRM, located some 280km (as the crow flies) from the town of Palma, continues to closely monitor
developments relating to the insurgency in Cabo Delgado. The insurgency has displaced an estimated
700,000 persons. MRM is liaising with the provincial and central governments about expanding the
humanitarian relief MRM provides. MRM and Gemfields join all those affected by the insurgency in seeking
the restoration of peace, safety and food security in the region.
Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented:
“This auction, made up of seven sequential mini-auctions, has yielded the third highest revenue figure of the fourteen auctions
which MRM has run since June 2014. We are very encouraged by the strong appetite from our clients and by the prices realised.
As a result of the fall-out from the Covid-19 pandemic, this auction was also our first since December 2019, meaning we
realised no sales at all for some 15 months. Because operations were suspended at MRM in April 2020, the world’s largest
ruby mine produced no new rubies for almost a year, with mining only now recommencing. Due to the arising supply and
demand dynamics, a number of our clients have therefore seen this auction as a vital opportunity to purchase rubies, particularly
given that MRM is only now commencing mining for its next mixed-quality ruby auction, which we hope will occur late this
year.
We’re truly delighted to be back in business after the lengthy pause in both mining and sales and we extend our heartfelt thanks
to our hard-working teams, our host government and our clients for their ongoing support.”
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, contact us on:
companysecretary@gemfields.com
For any press enquiries please contact us on:
gemfields@camarco.co.uk
ENQUIRIES
GEMFIELDS
Sean Gilbertson / David Lovett / Mark Lawrie
T: +44(0) 20 7518 3400
SPONSOR (JSE)
Investec Bank Limited
SEDIBELO SALE PROCESS
Liberum
Nehal Patel
T: +44(0) 20 3100 2222
NOMINATED ADVISER
finnCap
(AIM) & JOINT BROKER
Christopher Raggett / Tim Redfern / Edward Whiley
T: +44(0) 20 7220 0500
JOINT BROKER
Liberum
Clayton Bush / Scott Mathieson / Kane Collings
T: +44(0) 20 3100 2222
FINANCIAL PR/ IR
Camarco
Gordon Poole / Nick Hennis
T: +44(0) 20 3757 4980
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields is a world-leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator
and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world’s single largest
producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant
recently discovered ruby deposits in the world). In addition, Gemfields also holds controlling interests in
various other gemstone mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.
Gemfields’ outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables
Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing
the wider group’s “mine and market” vision.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to
provide a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields’
business model and has played an important role in the growth of the global coloured gemstone sector.
GEMFIELDS
GEMFIELDS.COM | INVESTORS |FOUNDATION
INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
Date: 08-04-2021 05:18:00
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