Gemfields Group Limited announced the results of its recent ruby auction held from 5th to 20th June 2023. The auction, featuring mixed-quality rough rubies, achieved total revenues of ZAR 1.497 billion. Out of the 94 lots offered for sale, 91 lots were successfully sold, accounting for an impressive 97% sales rate. The average realized price per carat stood at ZAR 4,947.34.
This auction marks the 19th successful auction of gemstones by Montepuez Ruby Mining Limitada (MRM), a subsidiary of Gemfields. Since June 2014, MRM’s auctions have generated a total revenue of ZAR 18.19 billion, showcasing the company’s strong performance in the market.
It is worth noting that one lot, weighing 26.8 kilograms and representing approximately 30% of the total weight offered, remained unsold. Consequently, the average price per carat realized in this auction was considerably higher than it would have been if this lot had also been sold.
Adrian Banks, Gemfields’ Managing Director of Product & Sales, expressed his satisfaction with the auction results, stating, “With the revenue from this auction up 20% since our last ruby auction in December 2022, today’s results echo the significant rebound in market prices we reported just weeks ago for Zambian emeralds. The ruby market is clearly firing on all twelve cylinders, and the step-change in market pricing which we reported in 2022 is notably enhanced.”
The auction lots were made available for private, in-person viewings by customers in Bangkok, followed by an online auction through a specially adapted platform for Gemfields. This online format allowed customers from multiple jurisdictions to participate in a sealed-bid process.
The rough rubies auctioned were extracted by MRM, a joint venture between Gemfields (75% ownership) and Mozambican partner Mwiriti Limitada (25% ownership). The proceeds from the auction will be fully repatriated to MRM in Mozambique, ensuring that all royalties owed to the Government of the Republic of Mozambique are paid based on the achieved sales price.