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
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:
Jun ‘17 Nov ‘17 Jun ‘18 Dec ‘18 Jun ‘19
AUCTION AUCTION AUCTION AUCTION AUCTION
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
(Higher, Medium (Higher, Medium (Higher, Medium (Higher, Medium
and Commercial and Commercial and Commercial and Commercial
Quality), no Quality), no Quality), no Quality), no
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%
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 email@example.com.
18 June 2019
Investec Bank Limited
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