Gemfields earns $69.5m from latest ruby auction
Ruby and emerald miner Gemfields has announced that it generated $69.5 million in total auction revenues from its latest auction of mixed-quality rough rubies. All 97 lots, comprising 239,591 carats of ruby, were sold at the auction, with an average realized price of $290.02 per carat.
The rough rubies were extracted by Montepuez Ruby Mining (MRM), a joint venture between Gemfields and its Mozambican partner Mwiriti. The proceeds from the auction will be fully repatriated to MRM in Mozambique, and all royalties owed to the Mozambique government will be paid based on the achieved sales price.
Customers had the opportunity to privately view the auction lots in Bangkok from November 20 to December 5. Following the viewings, the auctions were conducted through an online platform tailored for Gemfields, allowing participants from multiple jurisdictions to engage in a sealed bid process.
With the successful outcome of this auction, the 21 auctions of MRM gemstones held since June 2014 have now generated over $1 billion in total revenue.
Adrian Banks, Gemfields’ Product and Sales Managing Director, expressed satisfaction with the auction results. We’ve seen ruby prices at our auctions go from strength to strength in recent years, and our final auction of 2023 has further endorsed that trend. This auction has shown that the demand and pricing for rough rubies are decidedly healthy, he said.
The $69.5 million from the latest ruby auction contributed to Gemfields’ total auction revenue for the year, which currently stands at $242 million. This figure represents the second-highest annual revenue in the company’s history.
Banks also highlighted the significant milestone achieved by Gemfields. This auction also takes Gemfields past the milestone of $2 billion in cumulative emerald and ruby auction sales, an achievement that the Gemfields team and our stakeholders can be very proud of, particularly given the remittance of these sales revenues in full to the countries of origin, and the payment of nearly $400 million in mineral royalties and corporation taxes to the combined governments of Mozambique and Zambia, he explained.
Gemfields’ continued success in the ruby market underscores the strong demand and pricing for rough rubies. The company’s commitment to contributing to the economies of Mozambique and Zambia through the repatriation of sales revenues and the payment of royalties and taxes further highlights the responsible and sustainable nature of its operations.
Overall, Gemfields’ latest ruby auction has reinforced its position as a leading player in the global ruby and emerald industry. With its track record of providing high-quality gemstones and benefiting the countries of origin, the company continues to shape the future of the colored gemstone market.
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