Gemfields (LON:GEM) described the first auction of rubies from its Montepuez mine in Mozambique as a “stellar” success as revenues exceeded US$33mln.
The auction in Singapore saw 1.82mln carats sold, out of a total of 2.03mln offered, at an average retail price of US$18.43 per carat. Some 91% of the lots were sold, it added.
Total revenues of US$33.5mln were generated from the five day sale. As a result, group revenues this financial year will total more than US$143mln.
The coloured gemstone specialist has spent about US$34mln bringing Montepuez back into production since it acquired a 75% stake in 2011.
Gemfields added it used the system it applies to emeralds from its Kagem mine in Zambia to apply a comprehensive grading and sorting framework to the rough rubies.
Ian Harebottle, Gemfields’ chief executive said: "We are naturally delighted to announce the stellar results of our first auction of rubies and corundum from Montepuez in Mozambique.
"Since completing the acquisition of Montepuez - our first ruby deposit - in 2012, we have swiftly brought this greenfield asset into the operational and revenue-generating phases, producing over eight million carats and simultaneously developing a first-of-a-kind, proprietary ruby grading system.
“Importantly, the proceeds of this auction will be fully repatriated to Mozambique, to Montepuez Ruby Mining Limitada, in which Gemfields owns 75% and with all royalties due to the Government of Mozambique being paid on the full sales price achieved at the auction."
Auction attendees came from Thailand, which has a deep and long-standing relationship with the ruby trade, with buyers also from the US, India, Germany and Israel.