Gemfields rakes in $30.4m at latest Mozambican rubies auction

Aim-listed miner Gemfields has achieved auction revenues of $30.4-million at its latest rough ruby auction from its 75%-owned Montepuez deposit, in Mozambique.

Running between December 12 and 16, Gemfields sold 1.09-million carats from the 1.37-million carats on offer, translating to an average realised price of $27.29/ct, the company said in a note.

The seventh auction Montepuez rubies saw 39 companies placing bids for the high and commercial grade rough rubies in both untreated and treated form.

Gemfields CEO Ian Harebottle
Gemfields CEO Ian Harebottle

The proceeds of this auction will be repatriated to Montepuez, with the royalties due to the Mozambique government 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 stood at around $41.1-million.

CEO Ian Harebottle said that the company was pleased with the results, particularly considering some of its customers being unable to attend while they adjust to the regional demonetisation policy changes experienced over the past few weeks.

Source: Mining Weekly