Gemfields has announced that its June auction of rubies generated nearly $69 million, with 97% of the offerings sold. This auction coincides with the 10th anniversary of Gemfields’ first ruby sales from the Montepuez mine in Mozambique, which is renowned for its rich ruby deposits. The mine is 75% owned by Gemfields, with the remaining 25% held by its local partner, Mwiriti.
Adrian Banks, Gemfields’ Managing Director of Product and Sales, expressed pride in achieving an average selling price of $300 per carat at the auction. However, this total is slightly lower than last year’s $80.4 million and December’s $69.5 million ruby sales.
Despite challenges in the gemstone industry, including a downturn in the diamond sector due to reduced demand and increased competition from lab-made diamonds, Gemfields remains optimistic. The company’s recent appointment of former De Beers CEO Bruce Cleaver as chair reinforces its positive outlook.
Gemfields believes the market for colored gemstones remains strong against synthetic alternatives. They note that lab-grown rubies and emeralds have coexisted with mined gemstones for over a century without significantly affecting the market.
Following the announcement, Gemfields’ stock rose over 5% in London and closed 4.9% higher in Johannesburg, reflecting investor confidence in the company’s operations and market strategy.
