Global demand for rough rubies remains robust said Gemfields PLC (LON:GEM), after the coloured gemstones supplier sold US$30.4mln worth of rubies at a Singapore auction last week.
The gems were all mined from the Montepuez deposit in Mozambique – in which Gemfields has a 75% stake – with 58 of the 76 lots selling.
Almost 1.1mln carats – around 80% of the total offered – were sold at an average price of US$27.79.
“The prices achieved at this auction, combined with the high percentage of the value sold, fully support our view of ongoing solid demand for responsibly sourced Mozambican rubies across key markets and categories,” said chief executive Ian Harebottle.
“The recent prices obtained for fine cut-and-polished Mozambican rubies by international auction houses further underscore the exciting trajectory for rubies from Mozambique.”
Thirty nine companies placed bids at the sale, which offered both high and commercial grade rubies in treated and untreated form.
The blend of sizes and quality makes a direct comparison between previous auctions difficult said Gemfields.
Broker FinnCap noted: " This was the seventh auction of rubies from Montepuez and was the fourth highest in terms of revenue raised.
"The result was negatively impacted by the recent demonetisation policy in India, which has resulted in some buyers having to reorganise their financial backing. This is a temporary phenomenon and is expected to be resolved early in the New Year.
"The next auction will be of emeralds and is scheduled to happen in India in February 2017," said Martin Potts.
Shares sparkled a bit higher - up 2.05% to 56p.