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Singapore Ruby Auction Results
PALLINGHURST RESOURCES LIMITED
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: PALLRES ISIN: GG00B27Y8Z93
Share code on the JSE: PGL
("Pallinghurst" or the "Company")
Singapore Ruby Auction Results
Pallinghurst is pleased to announce the results of an auction of rough rubies held by its 100% owned subsidiary,
Gemfields Ltd (“Gemfields”) in Singapore from 5 – 9 June 2018. The rough rubies were extracted from the licence
held and operated by Montepuez Ruby Mining Limitada (“MRM”), which is 75% owned by Gemfields and 25%
by local partner Mwiriti Limitada.
Highlights – Ruby Auction
- Auction revenues of USD 71.8 million, an all-time Gemfields auction record;
- Of the 86 lots offered, 82 were sold (95%);
- Average price of USD 122 per carat, a new record for Gemfields’ mixed quality ruby auctions;
- 588,656 carats sold out of the 629,893 carats offered (93%); and
- The ten Gemflelds auctions of MRM rubies held since June 2014 have generated USD 407 million in
aggregate revenues.
Gemfields’ tenth auction of rough rubies from Montepuez saw 51 companies placing bids. The auction offered
high, medium and commercial grade rough rubies exclusively in untreated form.
The consistency of supply and the reliability of the Gemfields’ grading system continues to be well received by
buyers given that it reduces risk, improves manufacturing efficiencies and aids their ability to meet demand for
larger orders.
The auction generated total revenues of USD 71.8 million at an average realised price of USD 122 per carat. The
proceeds of this auction will be fully repatriated to MRM in Mozambique, with the production tax due to the
Government of Mozambique being paid on the full sales price achieved at the auction.
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.
On a quality-for-quality basis however, the per carat prices demonstrated particularly strong demand.
The auction results, which saw 82 of the 86 lots offered being sold, provided a high level of comfort in respect
of Gemfields’ understanding of the current market demand profile, which was further supported by customer
feedback received during the auction.
The results of the five most recent MRM auctions are summarised in the table below:
AUCTION RESULTS
Jun ‘16 Dec ‘16 Jun ‘17 Nov ‘17 Jun ‘18
(RUBY &
AUCTION AUCTION AUCTION AUCTION AUCTION
CORUNDUM)
13-19 Jun 12-16 Dec 10-14 Jun 6-10 Nov 5-9 Jun
Dates 2016 2016 2017 2017 2018
Location Singapore Singapore Singapore Singapore Singapore
Rough Ruby & Rough Ruby & Rough Ruby Rough Ruby
Rough Ruby
Corundum Corundum (Higher, (Higher,
(Higher, Medium
(Higher, (Higher, Medium and Medium and
and Commercial
Type Medium and Medium and Commercial Commercial
Quality), no
Commercial Commercial Quality), no Quality), no
Corundum
Quality) Quality) Corundum Corundum
Carats offered 1,601,145 1,372,145 1,048,687 682,508 629,893
Carats sold 1,516,459 1,094,673(a) 895,849 605,229 588,656
No. of lots offered 75 71(a) 83 76 86
No. of lots sold 71 59(a) 78 71 82
Percentage of lots 95% 83% 94% 93% 95%
sold
Percentage of lots 95% 80% 85% 89% 93%
sold by weight
Total sales realised USD 44.3 million USD 30.5 USD 54.8 million USD 55.0 USD 71.8
at auction million million million
Average per carat USD 29.21/carat USD USD 61.13/carat USD USD 122 /carat
sales value 27.88/carat 90.81/carat
Sean Gilbertson, CEO of Pallinghurst and Gemfields, commented:
“The health of market demand for Mozambican rubies mined by MRM and marketed by Gemfields is amply
demonstrated by these record-breaking auction results. We thank our customers for their support and assure
them in turn of our support in marketing and promoting Mozambican rubies and Zambian emeralds.
MRM has been the largest tax payer in Mozambique’s Cabo Delgado province for the last three years, and this
auction puts us on track to repeat that achievement in the 2018 calendar year, and to expand our community
and conservation initiatives.
As always, we thank our Mozambican partners, Mwiriti Limitada, and our host government – the Republic of
Mozambique - for their vision and support in building and internationalising the Mozambican gemstone sector
by promoting transparent and globally-competitive practices. Special gratitude goes to the teams at MRM and
Gemfields for their passion and hard work – this auction outcome would not have been possible without them”.
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.
Further information on Gemfields and Pallinghurst can be found at www.gemfields.com and
www.pallinghurst.com.
Guernsey
11 June 2018
Sponsor
Investec Bank Limited
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