London — The London-based mining company Gemfields on Tuesday announced that its latest auction in Singapore of rough stones from the company's ruby mine in the northern Mozambican district of Montepuez has raised 71.5 million US dollars.
Of the 104 parcels of rubies available at the auction, 90 were sold, fetching an average price of 77.12 dollars per carat.
Gemfields stresses that the proceeds of this auction will be fully repatriated to Montepuez Ruby Mining Ltd (MRM) in Mozambique, with the production tax due to the government being paid on the full sales price. The corporation tax and mineral production royalties amount to around 23 per cent of MRM's revenue.
According to Gemfields' Managing Director of Product and Sales, Adrian Banks, "our latest ruby auction in Singapore has delivered another stellar result for Mozambican rubies, with both demand and pricing clearly robust. We are particularly pleased to have seen such a diverse spread of winners, with 37 companies taking home at least one lot. The auction, our second biggest by value to date, means that Gemfields' annual revenues from ruby and emerald auctions have for the first time exceeded 200 million US dollars".
This was the thirteenth auction of stones from MRM held since June 2014, bringing in 584.1 million US dollars in aggregate revenues.
Gemfields holds 75 per cent of the shares in MRM. The remaining 25 per cent are owned by the Mozambican company Mwiriti.