Gemfields Records $46.2 Million in Revenue from Latest Ruby Auction Despite Market Challenges
Gemfields, a leading gemstone miner, reported $46.2 million in revenue from its recent auction of mixed-quality rough rubies recovered from the Montepuez ruby mine in Mozambique. The auction, which featured 102 lots, saw 97 lots successfully sold.
The auction revenue was impacted by a lower quantity of premium rubies available, which Gemfields identified as the primary factor driving the lower-than-expected results.
However, the company noted that the average price per carat reached a record high for its mixed-quality ruby auctions, despite observing softer prices and thinner bidding.
The rubies were extracted by Montepuez Ruby Mining (MRM), a joint venture where Gemfields holds a 75% stake and its Mozambican partner Mwiriti owns the remaining 25%.
The proceeds from the auction will be repatriated to MRM in Mozambique, with all royalties owed to the government paid on the full sales price.
Adrian Banks, Gemfields’ product and sales managing director, emphasized the positive outcome in light of global economic challenges, particularly in China, and ongoing geopolitical turbulence.
“These results reaffirm the stability of demand for Gemfields’ rubies, with prices for fine-quality stones aligning well with the limited supply of these rare gemstones,” he said.
Banks also noted that new entrants with well-developed supply chains placed successful bids, offering a promising outlook across the quality spectrum.
While the auction experienced softer prices and thinner bidding, Banks highlighted the record-high average price per carat, adding that the withdrawal of a lower-quality lot had minimal impact on the overall results.
Gemfields also addressed concerns about the security situation in Mozambique, where civil unrest has followed a contested election.
The company assured that its mining operations had remained unaffected by the unrest. “Our priority remains the safety and security of our employees and contractors,” said Banks, praising the efforts of the company’s team of around 1,600 employees in Mozambique.
Gemfields remains committed to supporting the peace and prosperity of Mozambique while continuing its mining operations in the region.
