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Auction Results - Trade Select Ruby Auction and MRM Update
Gemfields Group Limited
Incorporated in Guernsey. Guernsey registration number: 47656
South African external company registration number: 2009/012636/10
Share code on JSE:GML (General Segment of JSE Main Board) / AIM:GEM
ISIN: GG00BG0KTL52 | LEI: 21380017GAVXTCYS5R31
("Gemfields" or the "Group" or the "Company")
Auction Results - Trade Select Ruby Auction and MRM Update
LONDON, 30 JUNE 2026
Gemfields announces the results of an auction of mixed-quality rough ruby held from 22 to 29
June 2026. This marks the Company's first "Trade Select" auction, featuring a broader mix of ruby
qualities as well as newly introduced sapphire categories.
Highlights – Trade Select Ruby Auction – June 2026
- Total auction revenues of USD 23.1 million.
- 82 of the 89 lots offered for sale were sold (92.1%).
- 374,008 carats were offered for sale with 348,409 carats sold (93.2%).
- Average sales price of USD 66.30 per carat.
Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:
"We are pleased with the outcome of our inaugural 'Trade Select' ruby auction. The Trade Select format was
developed to sit between MRM's traditional Mixed-Quality ruby auctions and the smaller mini-auctions introduced
during 2025. By bringing selected grades and categories together in a focused offering, the format provides greater
flexibility in matching available production with market demand, whilst also broadening customer participation.
It was encouraging to receive positive feedback from customers regarding both the auction format and the composition
of the offering. Whilst market conditions remain challenging in certain sectors of the coloured gemstone market,
customer attendance was strong and bidding demonstrated continued demand across the categories offered.
I would like to thank the MRM team in Mozambique for their considerable efforts in preparing and delivering this
auction despite the many challenges they face. We now look forward to building on these results as preparations begin
for MRM's next Mixed-Quality ruby auction, presently scheduled for October 2026."
The gemstones were extracted in Mozambique by Montepuez Ruby Mining Limitada ("MRM")
which is 75% owned by Gemfields and 25% by 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.
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.
MRM Update
As set out in the announcement of 22 May 2026, MRM has experienced lower-than-expected ruby
production, primarily driven by declining recovered grades. Premium rubies typically account for
more than 70% of MRM's revenue but constitute less than 5% of the weight of rubies produced
and sold.
In the year ending 31 December 2025, overall premium ruby grade at MRM was 0.06 carats per
tonne. In the five-months ending 31 May 2026, the overall premium grade was 0.03 carats per
tonne.
In the Mugloto domain, which has produced the bulk of MRM's revenue and constitutes 78% of
the ore processed to date, the premium ruby grade was 0.03 carats per tonne in the year ending 31
December 2025. In the five-months to 31 May 2026, the premium ruby grade from the Mugloto
domain was 0.02 carats per tonne.
In addition to the declining grades, MRM has not been able to mine and process the most
favourable areas of the concession on account of heavy rainfall during the first quarter of 2026 and
commissioning issues with MRM's Second Processing Plant ("PP2"), as further set out below. As
a result, there will be a material adverse impact on the inventory available for MRM ruby auctions
for at least the remainder of 2026.
Operationally, the Company is undertaking additional targeted bulk sampling in areas considered
prospective for higher-grade material, with the aim of enhancing grade outcomes. In parallel,
Gemfields and MRM are maintaining a number of the cost management disciplines initiated in late
2024.
The Company will provide a further update on ruby production and recovered grades in its
operational update for the six months ending 30 June 2026, which is expected to be released on or
before 31 July 2026.
PP2
PP2 has been operating since September 2025, although final commissioning under the fixed-price
construction contract is presently expected during the third quarter of 2026. While the plant has
demonstrated its ability to achieve and exceed its design throughput rate, final commissioning
remains subject to a number of stabilisation, remedial and optimisation activities.
The issues encountered include higher-than-anticipated wear of certain components (including the
primary scrubber liners), original equipment manufacturer (OEM) construction defects in the
secondary scrubber (requiring a full rebuild and delivery of a replacement scrubber, expected to
arrive on site in August 2026), choking in various components requiring, inter alia, changing the
orientation and lining of chutes and feeders and the availability of critical spares. These issues have
had a material impact on plant availability and consistency of operation but are being actively
addressed as part of the final commissioning and stabilisation process.
MRM Security Situation
From 30 April 2026, assorted villages ranging from 15-35km away from MRM endured attacks
attributed to insurgents. These attacks saw churches and village homes burnt and resembled attacks
seen elsewhere in Mozambique's Cabo Delgado province. Fighting between local forces and the
attackers was also reported in the village of Mesa (29km East of MRM Village).
MRM paused operations for circa 20 hours as a precautionary measure, recommencing on 1 May
2026. The village of Naniviji, 25km Southeast of MRM was also attacked and saw a number of
homes burnt on 13 May 2026.
On 13 May 2026, Government authorities announced the arrest of a number of "false terrorists"
in Ancuabe. The perpetrators appear to have exploited the prevailing security concerns by imitating
the presence of insurgent groups, prompting residents to flee before looting property and setting
fire to homes. In addition to the risk of organised insurgent groups, threats also arise from locally
driven criminal activity, the presence of illegal ruby mining syndicates and broader destabilising
factors in the region, including difficulties in delivering adequate rule of law.
Conditions have since improved moderately and operational activity has returned to relative
normal, with ongoing developments being closely monitored.
MRM continues to experience high levels of illegal mining intrusion, with approximately 700
individuals entering daily. These intrusions pose a considerable safety risk to MRM's personnel,
contractors and community members, and also degrade MRM's ruby resources and recovery
grades.
VAT
MRM is owed USD 28.3 million in value-added tax ("VAT") refunds (as at 30 June 2026), which,
together with the increased VAT burden arising from the new legislation, has had a materially
negative impact on MRM's cash flow. The company has consistently engaged with authorities to
recover the VAT, however, has not received any VAT refunds since October 2024 and is
considering all available options to expedite the recovery of the historical VAT. Mozambique
introduced new VAT legislation on 1 January 2026 which, inter alia, materially increased the VAT
burden falling on MRM but also put in place a special regime for qualifying extractive companies.
MRM qualifies for the special regime which is designed to ensure that qualifying extractive
industries are able to have their VAT reliably reimbursed in accordance with a defined timetable.
The first reimbursement due to MRM under the new VAT rules, being MRM's VAT claim for
January 2026, is due for refund on 7 August 2026, in the amount of USD 0.37 million. Reliable
reimbursement of MRM's input VAT is of considerable importance to MRM's future cashflow.
Near-Term Outlook and Monitoring
Declining grades, PP2 commissioning challenges, security-related disruption, illegal mining activity
and delayed VAT receipts are collectively expected to adversely impact production, quality mix and
cash flow, and Gemfields and MRM are continuing to monitor the situation closely while engaging
with government authorities and carrying out available contingency planning.
-ENDS-
Further information on Gemfields Group Limited can be found at:
GEMFIELDSGROUP.COM
To join our investor mailing list, please contact us on:
ir@gemfields.com
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 / Heinrich Richter
ir@gemfields.com
T: +44(0) 20 7518 3400
SPONSOR (JSE) Investec Bank Limited
NOMINATED ADVISER Panmure Liberum
(AIM) & BROKER Scott Mathieson / Amrit Mahbubani / John More
T: +44(0) 20 3100 2222
PRESS ENQUIRES, GEMFIELDS press@gemfields.com
HEAD OFFICE, LONDON T: +44(0) 20 7518 3400
NOTES TO EDITORS
About Gemfields Group Limited
Gemfields is a world-leading miner of coloured gemstones, dual-listed on the Johannesburg and
London AIM stock exchanges.
Gemfields is the operator and 75% owner of both Kagem Mining in Zambia (a world-leading
emerald mine) and Montepuez Ruby Mining in Mozambique (situated on one of the most
significant recently discovered ruby deposits in the world). In addition, Gemfields holds controlling
interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique and
Madagascar.
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.
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Date: 30-06-2026 08:00:00
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