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Singapore Ruby Auction Results
GEMFIELDS GROUP LIMITED
(formerly Pallinghurst Resources Limited)
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: GML.BH ISIN: GG00BG0KTL52
Share code on the JSE: GML
("Gemfields" or the "Company")
Singapore Ruby Auction Results
Gemfields is pleased to announce the results of an auction of rough rubies in Singapore from 10 – 14 December 2018.
The rough rubies were extracted from the licence held and operated by Montepuez Ruby Mining Limitada (“MRM”),
which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada.
Highlights – Ruby Auction
- Auction revenues of USD 55.3 million;
- Of the 90 lots offered, 88 were sold (98%);
- Average price of USD 84.32 per carat;
- 655,623 carats sold out of the 685,363 carats offered (96%); and
- The eleven Gemfields auctions of MRM rubies held since June 2014 have generated USD 462.6 million in
aggregate revenues.
Gemfields’ eleventh auction of rough rubies from Montepuez saw 51 companies placing bids. The auction offered
high, medium and commercial grade rough rubies exclusively in untreated form.
The consistency of supply and the reliability of the Gemfields’ grading system continues to be well received by buyers
given that it reduces risk, improves manufacturing efficiencies and aids their ability to meet demand for larger orders.
The auction generated total revenues of USD 55.3 million at an average realised price of USD 84.32 per carat. The
proceeds of this auction will be fully repatriated to MRM in Mozambique, with the production tax due to the
Government of Mozambique being paid on the full sales price achieved at the auction.
The specific auction mix and quality composition 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.
On a quality for quality basis however, the per carat prices demonstrated continuing strong demand.
The results of the five most recent MRM auctions are summarised in the table below:
AUCTION RESULTS
Dec ‘16 Jun ‘17 Nov ‘17 Jun ‘18 Dec ‘18
(RUBY &
AUCTION AUCTION AUCTION AUCTION AUCTION
CORUNDUM)
12?16 Dec 10?14 Jun 6?10 Nov 5?9 Jun 10?14 Dec
Dates 2016 2017 2017 2018 2018
Location Singapore Singapore Singapore Singapore Singapore
Rough Ruby Rough Ruby Rough Ruby
Rough Ruby & Rough Ruby
(Higher, (Higher, (Higher,
Corundum (Higher, Medium
Medium and Medium and Medium and
(Higher, Medium and Commercial
Type Commercial Commercial Commercial
and Commercial Quality), no
Quality), no Quality), no Quality), no
Quality) Corundum
Corundum Corundum Corundum
Carats offered 1,372,145 1,048,687 682,508 629,893 685,363
Carats sold 1,094,673(a) 895,849 605,229 588,656 655,623
No. of lots offered 71(a) 83 76 86 90
No. of lots sold 59(a) 78 71 82 88
Percentage of lots 83% 94% 93% 95% 98%
sold
Percentage of lots 80% 85% 89% 93% 96%
sold by weight
Total sales realised USD 30.5 million USD 54.8 USD 55.0 million USD 71.8 USD 55.3 million
at auction million million
Average per carat USD 27.88/carat USD USD 90.81/carat USD 122.03 USD 84.32/carat
sales value 61.13/carat /carat
(a) Please note that the December 2016 ruby and corundum auction results have been amended to include a lot that was not previously
included in the original announcement made by Gemfields on 19 December 2016. Revenues have increased by US$0.1 million.
Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented:
“Our latest Singapore auction has yielded yet another compelling outcome, evidencing the ongoing robust demand
for Mozambican rubies mined and marketed by Gemfields and Montepuez Ruby Mining Lda.
The 41 Gemfields auctions held since July 2009, 30 of Zambian emeralds and 11 of Mozambican rubies, have now
surpassed USD 1 billion of combined auction revenue, a remarkable benchmark for the coloured gemstone sector.
We thank our clients, our host countries, our local partners and the Gemfields team for their tireless efforts and
support in building the platform that underpins a promising future for our industry.”
Additional information on Gemfields
Gemfields is a world leading supplier of responsibly sourced 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
licenses 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, 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
and has played an important role in the growth of the global coloured gemstone sector.
Further information on Gemfields Group Limited can be found at www.gemfieldsgroup.com.
For any press enquiries please contact us on investor.relations@gemfields.com.
Guernsey
18 December 2018
Sponsor
Investec Bank Limited
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