Wrap Text
Auction Results: Mixed-quality Rubies
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")
Auction Results: Mixed-quality Rubies
LONDON, 12 DECEMBER 2024
Gemfields announces the results of an auction comprised of mixed-quality rough ruby held during
the period 25 November – 11 December 2024.
Highlights: December 2024 Mixed-Quality Ruby Auction
• Total auction revenues of USD 46.2 million.
• 97 of the 102 lots offered for sale (comprising 167,865 carats) were sold (95%).
• A lower quantity of 'premium' rubies on offer was the key driver of the lower auction
revenues.
• Average price per carat reached a record high for our mixed-quality ruby auctions, while
observing some softer prices and thinner bidding.
• Mining operations in Mozambique remain unaffected by ongoing civil unrest following
the contested election.
Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:
"Despite ongoing economic challenges in China and geopolitical turbulence
worldwide, the results of this auction represent a positive outcome under the
current market conditions. These results reaffirm the stability of demand
for Gemfields' rubies, with prices for fine-quality aligning well with the
limited supply of these rare and precious gemstones.
Encouragingly, new entrants with well-developed supply chains placed successful bids in this auction, highlighting a
positive outlook across the quality spectrum. While we did observe some softer prices and thinner bidding, the average
price per carat reached a record high for our mixed-quality ruby auctions, with the withdrawal of a lower-quality lot
having only a limited effect.
Mozambique poses a number of material operating challenges at present, including as a result of the contested election,
the arising civil unrest and the associated supply chain and logistics interruptions. Gemfields' priority remains the
safety and security of our employees and contractors. We are grateful that, thus far, our mining operations have
remained unaffected and we praise our circa 1,600 colleagues in Mozambique for their ongoing efforts in this regard.
We wish the country and its citizens peace and prosperity and we are committed to making every effort within our
means to further those goals."
The rough rubies were extracted by Montepuez Ruby Mining Limitada ("MRM", which is 75%
owned by Gemfields and 25% by its 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 price achieved at the auction.
The auction lots were made available in Bangkok for private, in-person viewings by customers.
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 results of the five most recent Mixed-Quality MRM ruby auctions are summarised in the table
below (and earlier results are available at www.gemfieldsgroup.com):
AUCTION Dec '22 Jun '23 Dec '23 Jun '24 Dec '24
RESULTS AUCTION AUCTION AUCTION AUCTION AUCTION
(MIXED (7 sequential (7 sequential (7 sequential (7 sequential (7 sequential
QUALITY) mini-auctions) mini-auctions) mini-auctions) mini-auctions) mini-auctions)
21 Nov – 5 – 20 Jun 20 Nov – 3 – 18 Jun 25 Nov – 11
Dates
8 Dec 2022 2023 5 Dec 2023 2024 Dec 2024
Bangkok / Bangkok / Bangkok / Bangkok / Bangkok /
Location
Online Online Online Online Online
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
Type Commercial Commercial Commercial
Commercial Commercial
Quality), no Quality), no Quality), no
Quality), no Quality), no
'Low Ruby' 1 'Low Ruby' 1 'Low Ruby' 1
Corundum Corundum
or Corundum or Corundum or Corundum
Carats
525,246 446,202 239,591 217,044 167,865
offered
Carats sold 431,671 302,317 239,591 216,600 143,613
No. of
companies 44 51 53 52 46
placing bids
No. of lots
104 94 97 97 102
offered
No. of lots
98 91 97 94 97
sold
Percentage of
94% 97% 100% 97% 95%
lots sold
Percentage of
lots sold by 82% 68% 2 100% 99.8% 86%
weight
Total sales
USD 66.8 USD 80.4 USD 69.5 USD 68.7 USD 46.2
realised at
million million million million Million
auction
Average per
USD USD USD USD USD
carat sales
154.84/carat 265.99/carat 290.02/carat 316.95/carat 321.94/carat
value
Gemfields Group Limited
1 - The 'Low Ruby' category was not offered at the December 2023, June 2024 or December 2024 auctions.
2 - One lot of 26,806 grams (representing some 30% of the total weight offered) remained unsold at the June 2023 auction. As a result, the
average price per carat realised at this auction was considerably higher than it would have been had this lot also been sold. These gems were
then sold at the September 2023 commercial quality ruby auction.
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 always directly comparable.
In addition, Kagem Mining Limited ("Kagem"), the Zambian emerald mining company in which
Gemfields owns 75%, notes that a legal claim has been filed against it in Zambia by Kagem's
emerald mining competitor Grizzly Mining Limited, its sister company Pridegems Mines Limited
and their majority owner, Mr Abdoulaye Ndiaye. The claim relates to alleged unlawful occupation
by Kagem of an area known as "Kamakanga House" and conspiracy to injure business reputation
and goodwill. Gemfields and Kagem believe that these claims are entirely without merit. Kagem
(which had previously filed its own claim in Zambia against Grizzly, Pridegems and others in mid-
November 2024 in relation to another area known as the "BISMA licence") is in the process of
preparing a robust defence in conjunction with its legal advisors.
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, please contact us on:
ir@gemfields.com
For any press enquiries, please contact Helena and Albertina:
helena.choudhury@gemfields.com / albertina.namburete@gemfields.com
This announcement contains inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) no. 596/2014 which forms part of domestic UK law pursuant to the European Union
(withdrawal) act 2018 ("MAR").
Gemfields Group Limited
ENQUIRIES
GEMFIELDS Sean Gilbertson / David Lovett / Ian Hughes
ir@gemfields.com
T: +44(0) 20 7518 3400
SPONSOR (JSE) Investec Bank Limited
NOMINATED ADVISER Panmure Liberum
(AIM) & BROKER Scott Mathieson / Kieron Hodgson / Amrit Mahbubani / John More
T: +44(0) 20 3100 2222
GEMFIELDS HEAD OFFICE PR, Helena Choudhury / Albertina Namburete
LONDON helena.choudhury@gemfields.com / albertina.namburete@gemfields.com
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields is a world-leading responsible miner and marketer of 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 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 | X | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | X | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
Date: 12-12-2024 09:00:00
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