Gemfields (LON:GEM) said the results of its latest auction of rubies held in Singapore were pleasing as it brought in US$28.8mln of revenues.
The sale was of higher and medium quality stones from its Montepuez deposit in Mozambique and generated a great deal of interest.
A total of 90,642 carats were sold, which was 98% of the lots by weight or 95% by market value, fetching US$317.92 per carat. Thirty six companies placed bids.
Gemfields said given the quality mix offered, the results could not be directly compared with prior auctions.
However, on what it calls a “quality-for-quality basis”, per carat prices achieved remained on a par with previous sales.
Since June last year the firm has held five events for rubies that have netted US$150.8mln, with Montepuez bringing in significant additional income to that generated by the Gemfields’ main Kagem emerald operation in Zambia.
Chief executive Ian Harebottle told investors: "Demand for fine gems remains healthy and has recently been supported by a commensurate increase in demand for mid-priced and high-production-run gems.
“The prices Gemfields has achieved in this auction are in line with the company's expectations.
“Only a small selection of goods remained unsold. I have no doubt that the joint efforts to continue to build and expand the reach of the coloured gemstone sector means that all Gemfields' auction clients will be able to achieve healthy margins on their purchases.
“Although some degree of softening in the demand for certain darker tone and lower quality grades remains, largely as a direct result of a short term shift in global buying patterns, this should be overcome as Gemfields' consumer education initiatives continue to reach a broader cross-section of markets and as key economies continue to strengthen.”
The next auction will be of predominantly higher quality emeralds from Kagem is expected to take place next March.
City firm Investec said: " A reasonable result in US$ terms in line with the previous auction of high quality rubies. Pricing from auction to auction is variable as the company works through a price discovery process."
SP Angel repeated a 'buy' and 82p price target.
Shares were unchanged today at 39.5p.