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Gemfields Nets USD33.5 Million From Rough Ruby And Corundum Auction

Wed, 18th Jun 2014 08:43

LONDON (Alliance News) - Gemfields PLC Wednesday saw total revenues of USD33.5 million from its inaugural auction of rough ruby and corundum in Singapore between June 12 and 17.

The rough ruby and corundum was extracted by Montepuez Ruby Mining Limitada, in which Gemfields has a 75% interest, in Mozambique. Corundum is the mineral that produces rubies and sapphires.

The auction produced an average realised price of USD18.43 per carat, and over the 2.03 million carats on offer 1.82 million were sold.

The costs of the Montepuez ruby deposit in Mozambique, including acquisition and operating costs, so far stand at USD34 million. Gemfields says that the proceeds of the auctions would be fully repatriated to Mozambique, to Montepuez Ruby Mining, and royalties will be paid to the government of Mozambique.

As a result of the revenues from the auction, Gemfields revenues from gemstone sales for the year ending June 30 are now more than USD143 million, it said.

It expects the next auction of rough ruby and corundum to take place before the end of 2014.

Shares in Gemfields were trading up 2.5% at 53.56 pence Wednesday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews