21st Dec 2015 09:50
LONDON (Alliance News) - Diamond miner Gemfields PLC Monday said it generated sales worth almost USD29.0 million from its latest ruby auction held in Singapore, with prices meeting expectations.
Gemfield managed to sell 90,642 carats of the 92,136 carats it made available under the auction, achieving an average price of USD317.92 per carat to make a total of USD28.8 million in revenue.
"The prices Gemfields has achieved in this auction are in line with the company's expectations. Only a small selection of goods remained unsold. I have no doubt that the joint efforts to continue to build and expand the reach of the coloured gemstone sector means that all Gemfields' auction clients will be able to achieve healthy margins on their purchases," said Ian Harebottle, chief executive of the company.
The rubies were taken from the company's Montepuez mine in Mozambique, and it was the fifth auction to be held that sold product from that mine. The auctions from the mine, the first of which was back in June 2014, have made a total of USD150.8 million in total.
It was also the third auction to be held by the company in the current financial year due to end in June 2016, with the first two auctions either comprised of higher-quality emerald or lower-quality emerald and beryl from its other Kagem mine, making it hard to compare the auctions.
In the current financial year, Gemfields has made a total of USD82.7 million from its auctions.
"The auction results, which saw 45 of the 49 lots offered being sold, provided a clear indication with respect to the level of demand for these goods and supported the company's decision to place both higher and medium quality rough rubies on offer," said Gemfields.
Combining the results from all auctions held by the company using product from the Montepuez and Kagem mines, Gemfields has made a total of USD530.0 million in revenue.
The next auction will be held in March and will sell predominantly higher-quality emerald from the Kagem mine.
"Although some degree of softening in the demand for certain darker tone and lower-quality grades remains, largely as a direct result of a short-term shift in global buying patterns, this should be overcome as Gemfields' consumer education initiatives continue to reach a broader cross-section of markets and as key economies continue to strengthen," said Harebottle.
Gemfields shares were trading up 1.3% to 40.0 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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