JOHANNESBURG (miningweekly.com) – Gemstone producer Gemfields’ latest auction of ruby and corundum extracted from the Montepuez ruby deposit, in Mozambique, generated revenue of $5.4-million.
The auction, held in Singapore earlier this month, saw 54 companies placing bids.
The auction offered high and commercial grade rough rubies in both untreated and treated form.
All treated lots were offered using industry-accepted treatment techniques and on a fully disclosed basis.
"The prices achieved at this auction, combined with the high percentage of goods sold, highlight our belief in the ongoing increase in demand for responsibly sourced Mozambican rubies across key markets and jewellery categories,” CEO Ian Harebottle said in a statement on Friday.
He noted that on a quality-for-quality basis, the per carat prices reflected positive demand and were in line with the company's experiences at recent global trade events.
“The auction results, which saw 78 of the 83 lots on offer sold, provided a high level of comfort in respect of the company's understanding of the current market demand profile, which was further supported by customer feedback received during the auction,” Harebottle noted.
The proceeds of the auction will be repatriated to Montepuez, with the production tax due to the government of Mozambique being paid on the full sales price achieved at the auction.
Gemfields' aggregate consolidated revenues from all rough gemstone auctions for the financial year to date stands at about $132.7-million.