PERTH (miningweekly.com) – ASX-listed ruby miner Mustang Resources has revised its sales strategy, telling shareholders on Friday that it intended to sell the first rubies from its rapidly growing gem-ruby inventory as rough stones at an auction to bulk buyers in October.
The company’s decision shifted away from initial plans to sell rubies from its Montepuez project, in Mozambique, in the polished and rough forms. As part of the revised strategy, the cutting, polishing and direct sale of the five special stones exported to the US earlier this year, has been suspended.
“Mustang’s recently completed comprehensive market strategy showed that selling its rubies in bulk through an auction/tender process in their rough state is the most effective way to maximise the average price a carat and avoid the deferral of sales revenues inherent from cutting and polishing activities,” MD Christiaan Jordaan said.
“Generating early stage cash flow from the sale of these rough rubies will transform Mustang, especially as we continue to accelerate and expand our prospecting programme through continued bulk sampling, auger drilling and fieldwork across our soon to be expanded licence areas.”
An inventory of some 73 531 ct has been accumulated to date, and is expected to rise to some 200 000 ct in the coming months.