Gemfields (LON:GEM) could see a significant balance sheet boost from the huge ruby it has found at Montepuez as well indicating the potential for more finds in future said Investec.
The ruby weighed in at 40.23 carats and will be sold at the company’s next ruby auction in Singapore.
Recent sales of large rubies have been attracting record prices with an 8.62 carat Burmese stone getting almost US$1mln pee carat.
Experts say it depends on the type of stone being sold as well as the size, but the company said it was one of the most important rubies uncovered recently.
Investec added that the presence of such a large stone at Montepuez was encouraging especially as development has only just started at 3the 40 sq km mining area.
The results of the next auction will give greater clarity over the potential at Montepuez, it added.
Gemfields owns a 75% stake in the deposit in Mozambique. Its first auction of rough rubies and corundum in Juen generate revenues fo US$33.5mln.
Shares today rose again to 50.44p.