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GEMFIELDS GROUP LIMITED - Singapore ruby auction results

Release Date: 18/06/2019 07:05
Code(s): GML     PDF:  
 
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Singapore ruby auction results

GEMFIELDS GROUP LIMITED
(formerly Pallinghurst Resources Limited)
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: GML.BH ISIN: GG00BG0KTL52
Share code on the JSE: GML
("Gemfields" or the "Company")



Singapore Ruby Auction Results

Gemfields is pleased to announce the results of an auction of rough rubies in Singapore from 11 – 15 June 2019. 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 50.0 million;
    •    Of the 90 lots offered, 84 were sold (93%);
    •    Average price of USD 51.99 per carat;
    •    962,211 carats sold out of the 978,197 carats offered (98%);
    •    One lot set a new all-time price-per-carat record for any Gemfields auction; and
    •    The twelve Gemfields auctions of MRM rubies held since June 2014 have generated USD 512.6 million in
         aggregate revenues.

Gemfields’ twelfth auction of rough rubies from Montepuez saw 48 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 50.0 million at an average realised price of USD 51.99 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 continuing strong demand.

The results of the five most recent MRM auctions are summarised in the table below:
 AUCTION RESULTS
                            Jun ‘17            Nov ‘17             Jun ‘18              Dec ‘18              Jun ‘19
     (RUBY &
                           AUCTION            AUCTION             AUCTION              AUCTION              AUCTION
   CORUNDUM)

                          10-14 Jun            6-10 Nov             5-9 Jun            10-14 Dec            11-15 Jun
      Dates                  2017                2017                2018                 2018                 2019
     Location             Singapore           Singapore           Singapore            Singapore            Singapore
                                             Rough Ruby
                         Rough Ruby                             Rough Ruby           Rough Ruby           Rough Ruby
                                               (Higher,
                       (Higher, Medium                        (Higher, Medium      (Higher, Medium      (Higher, Medium
                                             Medium and
                       and Commercial                         and Commercial       and Commercial       and Commercial
       Type                                  Commercial
                          Quality), no                           Quality), no         Quality), no         Quality), no
                                             Quality), no
                          Corundum                               Corundum             Corundum             Corundum
                                              Corundum
Carats offered            1,048,687            682,508             629,893              685,363              978,197
Carats sold                895,849             605,229             588,656              655,623              962,211
No. of lots offered           83                  76                  86                   90                   90
No. of lots sold              78                  71                  82                   88                   84
Percentage of lots           94%                 93%                 95%                  98%                  93%
sold
Percentage of lots           85%                 89%                 93%                  96%                  98%
sold by weight
Total sales realised   USD 54.8 million       USD 55.0         USD 71.8 million     USD 55.3 million     USD 50.0 million
at auction                                     million
Average per carat      USD 61.13/carat          USD              USD 122.03         USD 84.32/carat      USD 51.99/carat
sales value                                  90.81/carat           /carat


   Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented:

   “Our twelfth auction of rubies from the Montepuez Ruby Mine in Mozambique has yielded another healthy result and
   has taken cumulative revenue since our first ruby auction in June 2014 to over half a billion dollars. Each of these
   dollars is repatriated to MRM in Mozambique where MRM has been the largest taxpayer in Cabo Delgado province
   from 2014 through 2017. Approximately 23 cents of every dollar of MRM’s revenue is paid to the government in the
   form of corporation tax and mineral production royalties. Large, premium quality gems remain very hard to come by
   and, as is demonstrated by the new price-per-carat record set for any Gemfields auction, such gems command
   corresponding prices. As always, our thanks go to the very hard-working teams at MRM and Gemfields, and of course
   to our partner, Mwiriti, and our host government in Mozambique.”

   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 Group Limited can be found at www.gemfieldsgroup.com.

For any press enquiries please contact us on investor.relations@gemfields.com.



Guernsey
18 June 2019

Sponsor
Investec Bank Limited

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