REG - Gemfields Group Ltd - Auction Results - Mixed-quality Rubies

GemfieldsAnnouncement

12/12/2024 07:00

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RNS Number : 7740P  Gemfields Group Limited  12 December 2024

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")

 

Auction Results: Mixed-quality Rubies

LONDON, 12 DECEMBER 2024

Gemfields announces the results of an auction comprised of mixed-quality rough
ruby held during the period 25 November - 11 December 2024.

Highlights: December 2024 Mixed-Quality Ruby Auction

·    Total auction revenues of USD 46.2 million.

·    97 of the 102 lots offered for sale (comprising 167,865 carats) were
sold (95%).

·    A lower quantity of 'premium' rubies on offer was the key driver of
the lower auction revenues.

·    Average price per carat reached a record high for our mixed-quality
ruby auctions, while observing some softer prices and thinner bidding.

·    Mining operations in Mozambique remain unaffected by ongoing civil
unrest following the contested election.

Adrian Banks, Gemfields' Managing Director of Product & Sales, commented:

"Despite ongoing economic challenges in China and geopolitical turbulence
worldwide, the results of this auction represent a positive outcome under the
current market conditions. These results reaffirm the stability of demand for
Gemfields' rubies, with prices for fine-quality aligning well with the limited
supply of these rare and precious gemstones.

Encouragingly, new entrants with well-developed supply chains placed
successful bids in this auction, highlighting a positive outlook across the
quality spectrum. While we did observe some softer prices and thinner bidding,
the average price per carat reached a record high for our mixed-quality ruby
auctions, with the withdrawal of a lower-quality lot having only a limited
effect.

Mozambique poses a number of material operating challenges at present,
including as a result of the contested election, the arising civil unrest and
the associated supply chain and logistics interruptions. Gemfields' priority
remains the safety and security of our employees and contractors. We are
grateful that, thus far, our mining operations have remained unaffected and we
praise our circa 1,600 colleagues in Mozambique for their ongoing efforts in
this regard. We wish the country and its citizens peace and prosperity and we
are committed to making every effort within our means to further those goals."

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.

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 (https://www.gemfieldsgroup.com) ):

 AUCTION RESULTS (MIXED QUALITY)    Dec '22 AUCTION                                                  Jun '23 AUCTION                                                  Dec '23 AUCTION                                                           Jun '24 AUCTION                                                           Dec '24 AUCTION

                                    (7 sequential mini-auctions)                                     (7 sequential mini-auctions)                                     (7 sequential mini-auctions)                                              (7 sequential mini-auctions)                                              (7 sequential mini-auctions)
 Dates                              21 Nov -                                                         5 - 20 Jun 2023                                                  20 Nov -                                                                  3 - 18 Jun 2024                                                           25 Nov - 11 Dec 2024

                                    8 Dec 2022                                                                                                                        5 Dec 2023
 Location                           Bangkok / Online                                                 Bangkok / Online                                                 Bangkok / Online                                                          Bangkok / Online                                                          Bangkok / Online
 Type                               Rough Ruby (Higher, Medium and Commercial Quality), no Corundum  Rough Ruby (Higher, Medium and Commercial Quality), no Corundum  Rough Ruby (Higher, Medium and Commercial Quality), no 'Low Ruby' (1) or  Rough Ruby (Higher, Medium and Commercial Quality), no 'Low Ruby' (1) or  Rough Ruby (Higher, Medium and Commercial Quality), no 'Low Ruby' (1) or
                                                                                                                                                                      Corundum                                                                  Corundum                                                                  Corundum
 Carats offered                     525,246                                                          446,202                                                          239,591                                                                   217,044                                                                   167,865
 Carats sold                        431,671                                                          302,317                                                          239,591                                                                   216,600                                                                   143,613
 No. of companies placing bids      44                                                               51                                                               53                                                                        52                                                                        46
 No. of lots offered                104                                                              94                                                               97                                                                        97                                                                        102
 No. of lots sold                   98                                                               91                                                               97                                                                        94                                                                        97
 Percentage of lots sold            94%                                                              97%                                                              100%                                                                      97%                                                                       95%
 Percentage of lots sold by weight  82%                                                              68% (2)                                                          100%                                                                      99.8%                                                                     86%
 Total sales realised at auction    USD 66.8                                                         USD 80.4                                                         USD 69.5                                                                  USD 68.7                                                                  USD 46.2

                                    million                                                          million                                                          million                                                                   million                                                                   Million
 Average per carat sales value      USD                                                              USD                                                              USD                                                                       USD                                                                       USD

154.84/carat
265.99/carat
290.02/carat
316.95/carat
321.94/carat

 

1 - The 'Low Ruby' category was not offered at the December 2023, June 2024 or
December 2024 auctions.

2 - 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 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.

In addition, Kagem Mining Limited ("Kagem"), the Zambian emerald mining
company in which Gemfields owns 75%, notes that a legal claim has been filed
against it in Zambia by Kagem's emerald mining competitor Grizzly Mining
Limited, its sister company Pridegems Mines Limited and their majority owner,
Mr Abdoulaye Ndiaye. The claim relates to alleged unlawful occupation by Kagem
of an area known as "Kamakanga House" and conspiracy to injure business
reputation and goodwill. Gemfields and Kagem believe that these claims are
entirely without merit. Kagem (which had previously filed its own claim in
Zambia against Grizzly, Pridegems and others in mid-November 2024 in relation
to another area known as the "BISMA licence") is in the process of preparing a
robust defence in conjunction with its legal advisors.

 

-ENDS-

 

Further information on Gemfields Group Limited can be found at:

 GEMFIELDSGROUP.COM (http://WWW.GEMFIELDSGROUP.COM)

 

To join our investor mailing list, please contact us on:
ir@gemfields.com (mailto:ir@gemfields.com)

 

For any press enquiries, please contact Helena and Albertina:
helena.choudhury@gemfields.com (mailto:helena.choudhury@gemfields.com) /
albertina.namburete@gemfields.com (mailto:albertina.namburete@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 / Ian Hughes

                                   ir@gemfields.com (mailto:ir@gemfields.com)

T:  +44(0) 20 7518 3400
 SPONSOR (JSE)                     Investec Bank Limited
 NOMINATED ADVISER                 Panmure Liberum

(AIM) & BROKER
Scott Mathieson / Kieron Hodgson / Amrit Mahbubani / John More
                                   T: +44(0) 20 3100 2222
 GEMFIELDS HEAD OFFICE PR, LONDON  Helena Choudhury / Albertina Namburete

                                   helena.choudhury@gemfields.com (mailto:helena.choudhury@gemfields.com) /
                                   albertina.namburete@gemfields.com (mailto:albertina.namburete@gemfields.com)

 

 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 (https://gemfields.com/) (https://gemfields.com/) | INVESTORS
(https://www.gemfieldsgroup.com/) (https://www.gemfieldsgroup.com/)
|FOUNDATION (https://www.gemfieldsfoundation.org/)

INSTAGRAM (https://www.instagram.com/gemfields/)
(https://www.instagram.com/gemfields/) | FACEBOOK
(https://www.facebook.com/Gemfields/) (https://www.facebook.com/Gemfields/) |
X (https://x.com/GemfieldsLtd?lang=en) | YOUTUBE
(https://www.youtube.com/channel/UCArCE0JFtakTP-tHq6v0KVg)

 

FABERGÉ

FABERGÉ.COM (https://www.faberge.com/) | INSTAGRAM
(https://www.instagram.com/officialfaberge/)
(https://www.instagram.com/officialfaberge/) | FACEBOOK
(https://www.facebook.com/OfficialFaberge)
(https://www.facebook.com/OfficialFaberge) | X (https://x.com/OfficialFaberge)
(https://x.com/OfficialFaberge) | YOUTUBE
(https://www.youtube.com/user/officialfaberge)

 

KAGEM MINING LINKEDIN (https://www.linkedin.com/company/kagem-mining-ltd)

MONTEPUEZ RUBY MINING LINKEDIN
(https://www.linkedin.com/company/montepuez-ruby-mining)

 

 

 

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