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Gemfields (LON:GEM), noted for its emeralds, is now making a name for itself in rubies.
It revealed this morning it raised a record US$43.3mln from the Singapore auction of rough red stones, including a 40 carat giant called the Rhino Ruby.
In total almost 64,000 carats from its Montepuez mine in Mozambique were sold - 74% of what was offered for sale.
Meanwhile, the average realised price of US$689 per carat was the highest ever achieved at any Gemfields auction.
The two Montepuez auctions held since June have generated US$76.8mln in revenues.
Gemfields owns 75% of the mine, with Mozambique government holding the remaining stake.
“The Montepuez ruby deposit, coupled with Gemfields' transparent and well-regarded auction platform, have had an indelible and positive impact on the global ruby market and we look forward to participating in the continued growth of this industry,” said chief executive Ian Harebottle.
“Customer response has been overwhelming, underscoring the potential for the Gemfields model.”
The shares, up 50% in the year to date, add a further 1% in morning trade to stand at 50.12p.
Broker Sanlam repeated its ‘buy’ and 60p price target for the stock.
“It is quite clear that the ruby property in Mozambique will generate higher value per carat and probably higher revenues than Kagem [the company’s emerald mine] on an annual basis,” the broker said in a note to clients.