REG - Gemfields Group Ltd - Ruby Auction Results

GemfieldsAnnouncement

21/06/2023 07:00

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RNS Number : 3646D  Gemfields Group Limited  21 June 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")

 

Ruby Auction Results

LONDON, 21 JUNE 2023

Gemfields is pleased to announce the results of a ruby auction comprised of
mixed-quality rough rubies held during the period 5 - 20 June 2023.

Highlights: June 2023 Mixed-Quality Ruby Auction

·    Total auction revenues of USD 80.4 million

·    91 of the 94 lots offered for sale were sold (97%)

·    Average realised price of USD 265.99 per carat

·    The 19 auctions of Montepuez Ruby Mining Limitada's ("MRM") gemstones
held since June 2014 have generated USD 978.5 million in total revenue

·    One lot of 26.8kg (representing some 30% of the total weight offered)
remained unsold. 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.

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

"With the revenue from this auction up 20% since our last ruby auction in
December 2022, today's results echo the significant rebound in market prices
we reported just weeks ago for Zambian emeralds. The ruby market is clearly
firing on all twelve cylinders and the step-change in market pricing which we
reported in 2022 is notably enhanced. As always, we send our thanks and
congratulations to our hard-working teams, our partners, our host governments
and of course our clients for their support."

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 rough rubies were extracted by MRM (which is 75% owned by Gemfields and
25% by 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 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 (http://www.gemfieldsgroup.com) ):

 

 AUCTION RESULTS (MIXED QUALITY)    Apr '21 AUCTION                                                  Dec '21 AUCTION                                                  Jun '22 AUCTION                                                  Dec '22 AUCTION                                                  Jun '23 AUCTION

                                    (7 sequential mini-auctions)                                     (7 sequential mini-auctions)                                     (7 sequential mini-auctions)                                     (7 sequential mini-auctions)                                     (7 sequential mini-auctions)
 Dates                              15 Mar -                                                         8 Nov -                                                          30 May -                                                         21 Nov -                                                         5 - 20 Jun 2023

                                    8 Apr 2021                                                       9 Dec 2021                                                       17 Jun 2022                                                      8 Dec 2022
 Location                           Various/ Online                                                  Various / 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 Corundum  Rough Ruby (Higher, Medium and Commercial Quality), no Corundum  Rough Ruby (Higher, Medium and Commercial Quality), no Corundum
 Carats offered                     726,610                                                          681,013                                                          610,135                                                          525,246                                                          446,202
 Carats sold                        343,952                                                          667,589                                                          387,681                                                          431,671                                                          302,317
 No. of companies placing bids      52                                                               49                                                               49                                                               44                                                               51
 No. of lots offered                94                                                               107                                                              119                                                              104                                                              94
 No. of lots sold                   89                                                               104                                                              112                                                              98                                                               91
 Percentage of lots sold            95%                                                              97%                                                              94%                                                              94%                                                              97%
 Percentage of lots sold by weight  *47%                                                             98%                                                              64%                                                              82%                                                              **68%
 Total sales realised at auction    USD 58.9                                                         USD 88.4                                                         USD 95.6                                                         USD 66.8                                                         USD 80.4

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

171.33/carat
132.47/carat
246.69/carat
154.84/carat
265.99/carat

 

* One lot of 76,343 grams (representing some 53% of the total weight offered)
remained unsold at the March/April 2021 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.

** 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.

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.

 

-ENDS-

 

 

Further information on Gemfields Group Limited can be found at:

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

 

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

 

For any press enquiries please contact us on:
gemfields@camarco.co.uk (mailto: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          finnCap

(AIM) & JOINT BROKER      Christopher Raggett / Tim Redfern / Edward Whiley
                            T: +44(0) 20 7220 0500
 JOINT BROKER               Liberum

Scott Mathieson / Kane Collings
                            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
and trading 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/) |
TWITTER (https://twitter.com/GemfieldsLtd?lang=en)
(https://twitter.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) | TWITTER
(https://twitter.com/OfficialFaberge) (https://twitter.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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