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GEMFIELDS GROUP LIMITED - Auction Results: Mixed-quality Rubies

Release Date: 12/12/2024 09:00
Code(s): GML     PDF:  
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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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