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GEMFIELDS GROUP LIMITED - Record Ruby Auction Results

Release Date: 20/06/2022 08:00
Code(s): GML     PDF:  
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Record 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 JSE:GML / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Company")


Record Ruby Auction Results
LONDON, 20 JUNE 2022


Gemfields is delighted to announce the results of a ruby auction comprised of seven sequential
mini-auctions held in Bangkok during the period 30 May – 17 June 2022. The auction delivered
all-time high auction revenues for any Gemfields auction and contained a selection of grades that
are typically offered at Montepuez Ruby Mining Limitada’s (“MRM”) auctions of mixed quality
rubies. Following the viewings, the auctions took place via an online auction platform specifically
adapted for Gemfields and which permitted customers from multiple jurisdictions to participate in
a sealed-bid process.

The rough rubies were all extracted from the mining licence held and operated by MRM (which is
75% owned by Gemfields and 25% by Mozambican partner Mwiriti Limitada). The proceeds of
this auction will be fully repatriated to MRM in Mozambique, with all royalties due to the
Government of the Republic of Mozambique being paid on the full sales prices achieved at the
auction.

Highlights: June 2022 Ruby Auction

-   Total auction revenues of USD 95.6 million, an all-time high for any Gemfields auction
-   Average price of USD 246.69 per carat, a new record for any mixed quality ruby auction
-   Of the 119 lots offered, 112 were sold (94.1%)
-   63.5% of the carats offered at the auction were sold
-   The 16 auctions of MRM rubies held since June 2014 have generated USD 827.1 million in
    total revenues


The auction saw 49 companies placing bids and generating record revenues of USD 95.6 million
with an overall average value of USD 246.69 per carat. The auction saw 94.1% of the number of
lots, and 63.5% of the offered carats, being sold.

The results of the five most recent mixed quality ruby auctions are summarised in the table below
(and earlier results are available at www.gemfieldsgroup.com):


 AUCTION             Jun ’19           Dec ’19             Apr ’21            Dec ’21            Jun ’22
 RESULTS            AUCTION           AUCTION            AUCTION            AUCTION           AUCTION
                                                        (7 sequential      (7 sequential     (7 sequential
                                                        mini-auctions)    mini-auctions)     mini-auctions)
Dates               11-15 Jun          10-14 Dec         15 Mar – 8       8 Nov – 9 Dec       30 May – 17
                       2019               2019            Apr 2021             2021             Jun 2022
Location            Singapore          Singapore          Various/           Various/           Various/
                                                           Online             Online             Online
Type               Rough Ruby         Rough Ruby        Rough Ruby         Rough Ruby        Rough Ruby
                     (Higher,           (Higher,          (Higher,           (Higher,           (Higher,
                   Medium and         Medium and        Medium and         Medium and        Medium and
                   Commercial         Commercial         Commercial        Commercial         Commercial
                   Quality), no       Quality), no       Quality), no      Quality), no       Quality), no
                    Corundum           Corundum          Corundum           Corundum           Corundum
Carats offered       978,197           1,158,114           726,610            681,013            610,135
Carats sold          962,211            927,130            343,952            667,589            387,681
No. of lots            90                 104                 94                107                119
offered
No. of lots             84                 91                 89                104                112
sold
Percentage of          93%                88%                95%                97%                94%
lots sold
Percentage of          98%                80%               *47%                98%                64%
lots sold by
weight
Total sales         USD 50.0           USD 71.5           USD 58.9           USD 88.4           USD 95.6
realised at          million            million            million            million            million
auction
Average per            USD               USD                USD               USD                USD
carat sales         51.99/carat       77.12/carat        171.33/carat      132.47/carat       246.69/carat
value

The specific auction mix and the quality 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 directly comparable.

Specific attention is drawn to the fact that one lot of 29,523.82 grams (representing some 24% of
the total weight offered) remained unsold and, as a result, the average price per carat realised at the
most recent auction is considerably higher than it would have been had this lot also been sold.


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

“Our first auction of rubies in 2022 has delivered truly glittering results, setting a new revenue record for any
Gemfields auction at USD 95.6 million. When combined with Kagem’s two emerald auctions so far this year,
Gemfields auction revenue in the first half of 2022 stands at USD 181 million versus our prior first half record of
USD 93 million, set in 2018. While we would caution that second-half revenues are unlikely to match the
remarkable first half, today’s auction results again underscore the extent of the step-change being experienced in the
market. We thank and congratulate our hard-working teams, our partners, our host governments and of course our
clients”.


                  Further information on Gemfields Group Limited can be found at:
                                             GEMFIELDSGROUP.COM


                              To join our investor mailing list, contact us on:
                                     companysecretary@gemfields.com


                                For any press enquiries please contact us on:
                                           gemfields@camarco.co.uk

                                                   ENQUIRIES

 GEMFIELDS                               Sean Gilbertson / David Lovett
                                         T: +44(0) 20 7518 3400


 SPONSOR (JSE)                           Investec Bank Limited


 SEDIBELO SALE PROCESS                   Liberum
                                         Scott Mathieson
                                         T: +44(0) 20 3100 2222

 NOMINATED ADVISER                       finnCap Limited
 (AIM) & JOINT BROKER                    Christopher Raggett / Tim Redfern / Edward Whiley
                                         T: +44(0) 20 7220 0500

 Gemfields Group Limited                                                                                  Page 3 of 4
 JOINT BROKER                            Liberum
                                         Scott Mathieson / Kane Collings
                                         T: +44(0) 20 3100 2222


 FINANCIAL PR/ IR                        Camarco
                                         Gordon Poole / Emily Hall
                                         T: +44(0) 20 3757 4980


ADDITIONAL INFORMATION ON GEMFIELDS

Gemfields is a world-leading miner of responsible 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 licences 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 through Fabergé designs, 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 that has played an important role in the growth of the
global coloured gemstone sector.

                                            GEMFIELDS

                          GEMFIELDS.COM | INVESTORS |FOUNDATION

                          INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE




                                             FABERGÉ

                FABERGÉ.COM | INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE




                                    KAGEM MINING LINKEDIN

                              MONTEPUEZ RUBY MINING LINKEDIN

Date: 20-06-2022 08:00:00
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