UK mining company Gemfields has announced the results of the fourth auction of rough rubies by its Mozambique subsidiary, Montepuez Ruby Mining. The auction, held in Singapore, raised $29.3-million. Gemfields owns 75% of Montepuez, with the other 25% being held by Mozambique company Mwiriti. The mine is located in Cabo Delgado province in the north of the African country.

The auction saw the company offering 72 208 ct in 46 lots. These were composed predominantly of higher-quality rough rubies. Of these, 47 451 ct in 28 lots were sold. The sales amounted to 66% of the carats offered in terms of weight and 87% in terms of market value. The average price per carat was $617. The first auction of rubies from Montepuez took place in June last year, followed by the second in December and the third in April this year. All four auctions have realised aggregate earnings of $122.2-million.

While the first, second and fourth auctions took place in Singapore, the third was held in Jaipur, India. The first saw the company offer 2.03-million carats of higher- and lower-quality rough ruby and corundum, of which 1.82-million carats was sold, bringing in revenues of $33.5-million, at an average of $18.43/ct. The second auction involved 85 491 carats of higher-quality rough ruby, of which 62 936 carats was sold, earning $43.3-million and averaging $688.64/ct. The third auction, in Jaipur, offered 4.03-million carats of lower-quality rough ruby and corundum, with sales totalling 3.99-million carats, realising $16.1-million, at an average of $4.03/ct. (Gemfields has developed the world’s first grading system for rough rubies, with sorting done at Montepuez by local staff.)

“We are pleased with the outcome of our third ruby auction in Singapore and our fourth auction of Montepuez rubies,” affirmed Gemfields CEO Ian Harebottle. “Demand for fine gem remains very healthy and the prices obtained are in line with our expectations, compared with the previous high-quality auction. Although there has been some softening in demand for certain darker tone and lower-quality grades, in our view, these grades offer remarkable value right now. We believe that this value can be unlocked in the near term through further market education and communication, as demonstrated by the price performance of our similar-quality emeralds auctioned from Kagem in recent years.”

Gemfields also owns 75% of the Kagem emerald mine, in Zambia, the other 25% belonging to the Zambia government. Kagem is the single largest emerald mine in the world, accounting for 20% of global production. Further, the UK company holds 50% of the Kariba amethyst mine, also in Zambia, 100% of Oriental Mining, undertaking gemstone exploration in Madagascar, and has a 75% share in 16 exploration licences, through three local subsidiaries, in Sri Lanka. “The six auctions we have hosted so far this financial year, three of emeralds and three of rubies, have yielded aggregate revenues of $154-million, a superb performance by Gemfields, with credit due to every member of our devoted and hard-working team worldwide,” he stated.