TIDMGEM
RNS Number : 3870P
Gemfields Group Limited
20 June 2022
Incorporated in Guernsey. Guernsey registration Number:
47656.
South African external company registration number
2009/012636/10
Share code on JSE:GML / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Company")
Record Ruby Auction Results
LONDON, 20 JUNE 2022
Gemfields is delighted to announce the results of a ruby auction
comprised of seven sequential mini-auctions held in Bangkok during
the period 30 May - 17 June 2022. The auction delivered all-time
high auction revenues for any Gemfields auction and contained a
selection of grades that are typically offered at Montepuez Ruby
Mining Limitada's ("MRM") auctions of mixed quality rubies.
Following the viewings, the auctions took place via an online
auction platform specifically adapted for Gemfields and which
permitted customers from multiple jurisdictions to participate in a
sealed-bid process.
The rough rubies were all extracted from the mining licence held
and operated by MRM (which is 75% owned by Gemfields and 25% by
Mozambican partner Mwiriti Limitada). The proceeds of this auction
will be fully repatriated to MRM in Mozambique, with all royalties
due to the Government of the Republic of Mozambique being paid on
the full sales prices achieved at the auction.
Highlights: June 2022 Ruby Auction
-- Total auction revenues of USD 95.6 million, an all-time high for any Gemfields auction
-- Average price of USD 246.69 per carat, a new record for any mixed quality ruby auction
-- Of the 119 lots offered, 112 were sold (94.1%)
-- 63.5% of the carats offered at the auction were sold
-- The 16 auctions of MRM rubies held since June 2014 have
generated USD 827.1 million in total revenues
The auction saw 49 companies placing bids and generating record
revenues of USD 95.6 million with an overall average value of USD
246.69 per carat. The auction saw 94.1% of the number of lots, and
63.5% of the offered carats, being sold.
The results of the five most recent mixed quality ruby auctions
are summarised in the table below (and earlier results are
available at www.gemfieldsgroup.com ):
AUCTION Jun '19 Dec '19 Apr '21 Dec '21 Jun '22
RESULTS AUCTION AUCTION AUCTION AUCTION AUCTION
(7 sequential (7 sequential (7 sequential
mini-auctions) mini-auctions) mini-auctions)
Dates 11-15 Jun 10-14 Dec 15 Mar - 8 Nov - 30 May -
2019 2019 8 Apr 2021 9 Dec 2021 17 Jun 2022
---------------- ---------------- ----------------- ----------------- -----------------
Location Singapore Singapore Various/ Various/ Various/
Online Online Online
---------------- ---------------- ----------------- ----------------- -----------------
Type Rough Ruby Rough Ruby Rough Ruby Rough Ruby Rough Ruby
(Higher, (Higher, (Higher, (Higher, (Higher,
Medium and Medium and Medium and Medium and Medium and
Commercial Commercial Commercial Commercial Commercial
Quality), Quality), Quality), Quality), Quality),
no Corundum no Corundum no Corundum no Corundum no Corundum
---------------- ---------------- ----------------- ----------------- -----------------
Carats offered 978,197 1,158,114 726,610 681,013 610,135
---------------- ---------------- ----------------- ----------------- -----------------
Carats sold 962,211 927,130 343,952 667,589 387,681
---------------- ---------------- ----------------- ----------------- -----------------
No. of lots
offered 90 104 94 107 119
---------------- ---------------- ----------------- ----------------- -----------------
No. of lots
sold 84 91 89 104 112
---------------- ---------------- ----------------- ----------------- -----------------
Percentage
of lots
sold 93% 88% 95% 97% 94%
---------------- ---------------- ----------------- ----------------- -----------------
Percentage
of lots
sold by
weight 98% 80% *47% 98% 64%
---------------- ---------------- ----------------- ----------------- -----------------
Total sales USD 50.0 USD 71.5 USD 58.9 USD 88.4 USD 95.6
realised million million million million million
at auction
---------------- ---------------- ----------------- ----------------- -----------------
Average USD 51.99/carat USD 77.12/carat USD 171.33/carat USD 132.47/carat USD 246.69/carat
per carat
sales value
---------------- ---------------- ----------------- ----------------- -----------------
The specific auction mix and the quality of the lots offered at
each auction vary in characteristics such as size, colour and
clarity on account of variations in mined production and market
demand. Therefore, the results of each auction are not directly
comparable.
Specific attention is drawn to the fact that one lot of
29,523.82 grams (representing some 24% of the total weight offered)
remained unsold and, as a result, the average price per carat
realised at the most recent auction is considerably higher than it
would have been had this lot also been sold.
Adrian Banks, Gemfields' Managing Director of Product &
sales, commented:
"Our first auction of rubies in 2022 has delivered truly
glittering results, setting a new revenue record for any Gemfields
auction at USD 95.6 million. When combined with Kagem's two emerald
auctions so far this year, Gemfields auction revenue in the first
half of 2022 stands at USD 181 million versus our prior first half
record of USD 93 million, set in 2018. While we would caution that
second-half revenues are unlikely to match the remarkable first
half, today's auction results again underscore the extent of the
step-change being experienced in the market. We thank and
congratulate our hard-working teams, our partners, our host
governments and of course our clients".
-S-
Further information on Gemfields Group Limited can be found
at:
GEMFIELDSGROUP.COM
To join our investor mailing list, contact us on:
companysecretary@gemfields.com
For any press enquiries please contact us on:
gemfields@camarco.co.uk
ENQUIRIES
GEMFIELDS Sean Gilbertson / David Lovett
T: +44(0) 20 7518 3400
SPONSOR (JSE) Investec Bank Limited
-----------------------------------
SEDIBELO SALE PROCESS Liberum
Scott Mathieson
T: +44(0) 20 3100 2222
-----------------------------------
NOMINATED ADVISER finnCap Limited
(AIM) & JOINT BROKER Christopher Raggett / Tim Redfern
/ Edward Whiley
T: +44(0) 20 7220 0500
-----------------------------------
JOINT BROKER Liberum
Scott Mathieson / Kane Collings
T: +44(0) 20 3100 2222
-----------------------------------
FINANCIAL PR/ IR Camarco
Gordon Poole / Emily Hall
T: +44(0) 20 3757 4980
-----------------------------------
ADDITIONAL INFORMATION ON GEMFIELDS
Gemfields is a world-leading miner of responsible coloured
gemstones. Gemfields is the operator and 75% owner of both the
Kagem emerald mine in Zambia (believed to be the world's single
largest producing emerald mine) and the Montepuez ruby mine in
Mozambique (one of the most significant recently discovered ruby
deposits in the world). In addition, Gemfields also holds
controlling interests in various other gemstone mining and
prospecting licences in Zambia, Mozambique, Ethiopia and
Madagascar.
Gemfields' outright ownership of Fabergé - an iconic and
prestigious brand of exceptional heritage - enables Gemfields to
optimise positioning, perception and consumer awareness of coloured
gemstones through Fabergé designs, advancing the wider group's
"mine and market" vision.
Gemfields has developed a proprietary grading system and a
pioneering auction and trading platform to provide a consistent
supply of coloured gemstones to downstream markets, a key component
of Gemfields' business model that has played an important role in
the growth of the global coloured gemstone sector.
GEMFIELDS
GEMFIELDS.COM | INVESTORS | FOUNDATION
INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
FABERGÉ
FABERGÉ.COM | INSTAGRAM | FACEBOOK | TWITTER | YOUTUBE
KAGEM MINING LINKEDIN
MONTEPUEZ RUBY MINING LINKEDIN
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