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GEMFIELDS GROUP LIMITED - Singapore Ruby Auction Results

Release Date: 17/12/2019 07:15
Code(s): GML     PDF:  
 
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Singapore Ruby Auction Results

GEMFIELDS GROUP 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         LEI: 21380017GAVXTCYS5R31
("Gemfields" or "the Company")

Singapore Ruby Auction Results

Gemfields is pleased to announce the results of an auction of rough rubies in Singapore from 10 – 14 December 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 71.5 million;
    •    Of the 104 lots offered, 91 were sold (88%);
    •    Average price of USD 77.12 per carat;
    •    927,130 carats sold out of the 1,158,114 carats offered (80%); and
    •    The 13 Gemfields auctions of MRM rubies held since June 2014 have generated USD 584.1 million in
         aggregate revenues.

Gemfields’ thirteenth auction of rough rubies from Montepuez saw 53 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 71.5 million at an average realised price of USD 77.12 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
                           Nov ‘17             Jun ‘18             Dec ‘18             Jun ‘19              Dec ‘19
     (RUBY &
                          AUCTION             AUCTION             AUCTION             AUCTION              AUCTION
   CORUNDUM)

                          6-10 Nov             5-9 Jun           10-14 Dec            11-15 Jun            10-14 Dec
      Dates                  2017               2018                2018                 2019                 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             682,508            629,893             685,363              978,197             1,158,114
Carats sold                605,229            588,656             655,623              962,211              927,130
No. of lots offered           76                 86                  90                   90                  104
No. of lots sold              71                 82                  88                   84                   91
Percentage of lots           93%                95%                 98%                  93%                  88%
sold
Percentage of lots           89%                93%                 96%                  98%                  80%
sold by weight
Total sales realised   USD 55.0 million       USD 71.8        USD 55.3 million     USD 50.0 million     USD 71.5 million
at auction                                     million
Average per carat      USD 90.81/carat       USD 122.03       USD 84.32/carat      USD 51.99/carat      USD 77.12/carat
sales value                                    /carat


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

   “Our latest ruby auction in Singapore has delivered another stellar result for Mozambican rubies, with both demand
   and pricing clearly robust. We are particularly pleased to have seen such a diverse spread of winners, with 37
   companies taking home at least one lot. The auction, our second biggest by value to date, means that Gemfields’
   annual revenues from ruby and emerald auctions has for the first time exceeded USD 200 million.

   The auction marked a further milestone in that 12 prominent lots from this auction have become the first Gemfields
   rubies ever to pioneer the use of blockchain in facilitating improved supply chain traceability. The winners are
   therefore able to validate the route to market via the Provenance Proof Blockchain established by the Gübelin Gem
   Lab of Switzerland.

   We thank our clients, our local partner Mwiriti Limitada, the Government of Mozambique and the hard-working
   Gemfields teams across eight countries for their efforts and support underpinning the ongoing growth of the African
   coloured gemstone sector.

   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 To join our press release mailing list, click here: gemfields@gemfields.com
For any press enquiries please contact us on investor.relations@gemfields.com

London
17 December 2019

JSE Sponsor:
Investec Bank Limited

Date: 17-12-2019 07:15:00
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