TIDMGEM
RNS Number : 8004V
Gemfields Group Limited
06 December 2023
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")
Final 2023 auction results underscore the ongoing vitality of
the ruby market
LONDON, 6 DECEMBER 2023
Gemfields is pleased to announce the results of a ruby auction
comprised of mixed-quality rough rubies held during the period 20
November to 5 December 2023.
The rough rubies were extracted by Montepuez Ruby Mining
Limitada ("MRM", which is 75% owned by Gemfields and 25% by its
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 price achieved at the auction.
The auction lots were made available in Bangkok for private,
in-person viewings by customers. 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.
Highlights: December 2023 Mixed-Quality Ruby Auction
-- Total auction revenues of USD 69.5 million
-- All 97 lots (comprising 239,591 carats) offered for sale were sold (100%)
-- Average realised price of USD 290.02 per carat
-- The 21 auctions of MRM gemstones held since June 2014 have
now generated over one billion dollars (USD 1,049 million) in total
revenue
Adrian Banks, Gemfields' Managing Director of Product &
Sales, commented:
"We've seen ruby prices at our auctions go from strength to
strength in recent years and our final auction of 2023 has further
endorsed that trend. This auction has shown that the demand and
pricing for rough rubies is decidedly healthy.
Gemfields' total auction revenue for 2023 stands at USD 242
million, the second highest in our history. This auction also takes
Gemfields past the milestone of USD 2 billion in cumulative emerald
and ruby auction sales, an achievement that the Gemfields team and
our stakeholders can be very proud of, particularly given the
remittance of these sales revenues in full to the countries of
origin, and the payment of nearly USD 400 million in mineral
royalties and corporation taxes to the combined governments of
Mozambique and Zambia.
As always, our thanks go to our hard-working colleagues, our
partners, our host governments and of course our clients for their
ongoing support and confidence in Gemfields."
The results of the five most recent mixed-quality MRM ruby
auctions are summarised in the table below (and earlier results are
available at www.gemfieldsgroup.com ):
AUCTION Dec '21 Jun '22 Dec '22 Jun '23 Dec '23
RESULTS (MIXED AUCTION AUCTION AUCTION AUCTION AUCTION
QUALITY) (7 sequential (7 sequential (7 sequential (7 sequential (7 sequential
mini-auctions) mini-auctions) mini-auctions) mini-auctions) mini-auctions)
Dates 8 Nov - 30 May - 21 Nov - 5 - 20 Jun 20 Nov -
9 Dec 2021 17 Jun 2022 8 Dec 2022 2023 5 Dec 2023
---------------- ---------------- ---------------- ---------------- ----------------
Location Various / Bangkok / Bangkok / Bangkok / Bangkok /
Online Online 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 681,013 610,135 525,246 446,202 239,591**
---------------- ---------------- ---------------- ---------------- ----------------
Carats sold 667,589 387,681 431,671 302,317 239,591
---------------- ---------------- ---------------- ---------------- ----------------
No. of companies
placing bids 49 49 44 51 53
---------------- ---------------- ---------------- ---------------- ----------------
No. of lots
offered 107 119 104 94 97
---------------- ---------------- ---------------- ---------------- ----------------
No. of lots
sold 104 112 98 91 97
---------------- ---------------- ---------------- ---------------- ----------------
Percentage
of lots sold 97% 94% 94% 97% 100%
---------------- ---------------- ---------------- ---------------- ----------------
Percentage
of lots sold
by weight 98% 64% 82% 68%* 100%
---------------- ---------------- ---------------- ---------------- ----------------
Total sales USD 88.4 USD 95.6 USD 66.8 USD 80.4 USD 69.5
realised million million million million million
at auction
---------------- ---------------- ---------------- ---------------- ----------------
Average per USD USD USD USD USD
carat sales 132.47/carat 246.69/carat 154.84/carat 265.99 /carat 290.02/carat
value
---------------- ---------------- ---------------- ---------------- ----------------
* One lot of 26,806 grams (representing some 30% of the total
weight offered) remained unsold at the June 2023 auction. As a
result, the average price per carat realised at this auction was
considerably higher than it would have been had this lot also been
sold. These gems were then sold at the September 2023 commercial
quality ruby auction.
** The 'Low Ruby' category was not offered at this December 2023
auction given that approximately 703,000 carats were sold at the
commercial quality ruby auction in September 2023.
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 always
directly comparable.
-S-
Further information on Gemfields Group Limited can be found
at:
GEMFIELDSGROUP.COM
To join our investor mailing list, contact us on:
ir@gemfields.com
For any press enquiries please contact us on:
gemfields@camarco.co.uk
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) no. 596/2014 which
forms part of domestic UK law pursuant to the European Union
(withdrawal) act 2018 ("MAR").
ENQUIRIES
GEMFIELDS Sean Gilbertson / David Lovett / Ian
Hughes
ir@gemfields.com
T: +44(0) 20 7518 3400
SPONSOR (JSE) Investec Bank Limited
-------------------------------------
NOMINATED ADVISER Liberum
(AIM) & BROKER Scott Mathieson / John More / Kane
Collings / Anake Singh
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 responsible miner and marketer of
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 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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