REG - Gemfields Group Ltd - Ruby Auction Results

GemfieldsAnnouncement

06/12/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231206:nRSF8004Va&default-theme=true

RNS Number : 8004V  Gemfields Group Limited  06 December 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")

Final 2023 auction results underscore the ongoing vitality of the ruby market

LONDON, 6 DECEMBER 2023

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

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.

Highlights: December 2023 Mixed-Quality Ruby Auction

·    Total auction revenues of USD 69.5 million

·    All 97 lots (comprising 239,591 carats) offered for sale were sold
(100%)

·    Average realised price of USD 290.02 per carat

·    The 21 auctions of MRM gemstones held since June 2014 have now
generated over one billion dollars (USD 1,049 million) in total revenue

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

"We've seen ruby prices at our auctions go from strength to strength in recent
years and our final auction of 2023 has further endorsed that trend. This
auction has shown that the demand and pricing for rough rubies is decidedly
healthy.

Gemfields' total auction revenue for 2023 stands at USD 242 million, the
second highest in our history. This auction also takes Gemfields past the
milestone of USD 2 billion in cumulative emerald and ruby auction sales, an
achievement that the Gemfields team and our stakeholders can be very proud of,
particularly given the remittance of these sales revenues in full to the
countries of origin, and the payment of nearly USD 400 million in mineral
royalties and corporation taxes to the combined governments of Mozambique and
Zambia.

As always, our thanks go to our hard-working colleagues, our partners, our
host governments and of course our clients for their ongoing support and
confidence in Gemfields."

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)    Dec '21 AUCTION                                                  Jun '22 AUCTION                                                  Dec '22 AUCTION                                                  Jun '23 AUCTION                                                  Dec '23 AUCTION

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

                                    9 Dec 2021                                                       17 Jun 2022                                                      8 Dec 2022                                                                                                                        5 Dec 2023
 Location                           Various / 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 Corundum  Rough Ruby (Higher, Medium and Commercial Quality), no Corundum  Rough Ruby (Higher, Medium and Commercial Quality), no Corundum
 Carats offered                     681,013                                                          610,135                                                          525,246                                                          446,202                                                          239,591**
 Carats sold                        667,589                                                          387,681                                                          431,671                                                          302,317                                                          239,591
 No. of companies placing bids      49                                                               49                                                               44                                                               51                                                               53
 No. of lots offered                107                                                              119                                                              104                                                              94                                                               97
 No. of lots sold                   104                                                              112                                                              98                                                               91                                                               97
 Percentage of lots sold            97%                                                              94%                                                              94%                                                              97%                                                              100%
 Percentage of lots sold by weight  98%                                                              64%                                                              82%                                                              68%*                                                             100%
 Total sales realised at auction    USD 88.4                                                         USD 95.6                                                         USD 66.8                                                         USD 80.4                                                         USD 69.5

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

132.47/carat
246.69/carat
154.84/carat
265.99/carat
290.02/carat

 

* 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 'Low Ruby' category was not offered at this December 2023 auction given
that approximately 703,000 carats were sold at the commercial quality ruby
auction in September 2023.

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 (mailto:ir@gemfields.com)

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

(AIM) & BROKER
Scott Mathieson / John More / Kane Collings / Anake Singh
                      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
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)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAEAKEADDFEA