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Gemfields (LON:GEM) said it was pleased with its latest ruby auction in Singapore that included the sale of a recently discovered pair of rare matching red stones.
The pair, renamed Eyes of the Dragon, were sold to ruby house Veerasak Gems of Thailand. The price was not disclosed.
In total, the auction raised US$29.3mln with an average carat price of US$617.
Revenues were higher than the US$16.1mln generated in the previous auction in April, which was lower quality stones, but below the US$43.3mln generated in the last high quality stone auction in December.
The rubies came from Gemfields' Montepuez mine in Mozambique and boosted ruby auction proceeds overall since last June to US$122.2mln.
Some 47,451 carats were sold (66% by weight or 87% by market value) out of the total of 72,208 carats offered; within that, 28 of the 46 lots offered were sold.
Ian Harebottle, chief executive, said he was pleased with the results, adding that demand for the fine gems remains very healthy with prices in line with expectations though there was some softening for certain darker tone and lower quality grades.
These grades of ruby offer "remarkable value" right now, he added, and Gemfields believes it can boost the market with the same methods that have worked well with emeralds from its Kagem mine.
“The six auctions we have hosted so far this financial year, three of emeralds and three of rubies, have yielded aggregate revenues of US$ 154 mln, a superb performance,” he concluded.
The next auction is a high quality emerald sale in August.
Brokers were mixed in their assessment.
Peel Hunt said the result was a modest dampener on what had been a stellar year for the company, but the impact on its forecasts was limited.
“With rough stone auction revenue set to be up 31% year –on-year, this has been one of the most compelling stories in the mining sector,” it said.
Numis added that pricing seemed to have softened slightly since the last higher quality auction.
Even so, it likes the stock and outlook for coloured gemstones. Its target price remains 80p.
Shares fell 6% to 60p.