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The latest auction results from coloured gems specialist () have made the broking community sit up and take notice.
The company achieved a new record price per carat at its recent emerald auction held in Lusaka Zambia.
The average realised price of predominantly higher quality rough emeralds from its Kagem mine hit US$65.89 per carat while auction revenues of US$34.9mln were the second highest achieved at any higher quality auction.
Of the 589000 carats offered for sale 530000 carats or 88.6% of the total were snapped up.
said the number of companies placing bids at the auction was 34 the same as at the February auction in Lusaka.
The average number of bids per lot eased to 12 from 13 in February but the number of lots sold rose to 16 of 17 offered from 15 of 17 offered in February.
The percentage of lots sold by weight value rose to 89% from 86% in February.
"We've set another record for per carat prices as is evidenced by the 11% increase achieved versus our last higher quality auction and have now completed six successful auctions in Zambia all during the last 20 months" said Ian Harebottle chief executive officer of .
"We will continue to seek a wider client base internationally including among our new audience of rough ruby buying clients and look forward to our ruby auction in Singapore next month which we hope will deliver a similarly pleasing outcome" he added.
"This is an exceptional result and the average price represents a new record for higher quality emerald auctions significantly ahead of the previous auction held in February 2014 ($59.31/ct)" said broker finnCap.
"This demonstrates a continued strengthening of global demand for coloured gemstones and we now look forward to ’ next rough ruby auction in Singapore in December 2014. We reiterate our full-year forecasts and 60p price target" the broker added.
meanwhile upgraded its target price for on the back of this auction and now has a target of 61.1p up from 57.2p previously.
“We anticipate another low quality and high quality emerald auction this financial year to deliver US$86mln of revenue. We have adjusted our modelled product mix reducing the proportion of high quality emeralds sold to 6% (previously 10%) of saleable product but increased their value from US$40/carat to US$65/carat” the broker revealed.
“We also increase mined volumes as the recent quarterly update reflected an improved fleet performance” Invested added.' next auction will take place in Singapore in December 2014 and will comprise rough rubies from the Montepuez ruby deposit in Mozambique.
The Montepuez Ruby Mine is set to be a major value driver for shareholders in ’s view.
The maiden ruby auction in August generated US$15.5mln in revenues which noted more than recovered all investment in the Montepuez asset.
“The quarterly update reflected a ramp up in activities and we look to the results of the next auction in December as management works to better understand and optimise the sales process for rubies” the broker said.
Shares in were up 2.5% at 48.58p in at 1.00pm.
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