(MENAFN- ProactiveInvestors - UK) Coloured gems specialist Gemfields PLC (LON:GEM) notched up record revenues in its recent auction of rough rubies held in Singapore.
The auction generated record total revenues of US$44.3 million at an average realised price of US$29.21 per carat.
Given the quality mix offered at this auction comprised a blend of varying qualities and sizes of material, a direct comparison with previous auction results is not possible, Gemfields said.
On a quality-for-quality basis, however, the per carat prices achieved were indicative of improved overall global demand when compared to previous auctions, it added.
In all, 71 of the 75 lots up for auction were sold, with 44 companies placing bids.
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The proceeds of this auction will be repatriated to Montepuez Ruby Mining Limitada, which is 75%-owned by Gemfields, in Mozambique, with the royalties due to the Government of Mozambique being paid on the full sales price achieved at the auction.
In total, the six auctions of gems from Montepuez held since June 2014 have generated US$195.1mln in aggregate revenues.
"We are pleased with the results of Gemfields'' sixth Montepuez ruby auction. The prices achieved and the high percentage of goods sold fully support our analysis of the market conditions, the quality of Mozambique''s rubies and the increasing levels of demand across various markets and categories,'' said Ian Harebottle, chief executive officer (CEO) of Gemfields.
Speaking to Proactive Investors, the chief executive said the outcome of the auction was above expectations, especially as the "global economy is not the best" at the moment.
"It''s not just about the numbers, though; we''re pleased that a lot of the stock went to very good companies, many of which had bought at previous auctions," Harebottle said.
The CEO revealed that the company is to launch a new global marketing campaign in London on 22 June focusing on Mozambican rubies.
Attendees of the Singapore auction were given a sneak preview of the campaign.
''The overwhelmingly positive response underpinned the clients'' confidence in Gemfields marketing efforts and is further supported in the company''s ongoing success in growing demand for Zambian emeralds,'' Harebottle said.
''The five ruby and emerald auctions Gemfields has hosted so far this financial year have yielded aggregate revenues of US$174.4 million,'' Harebottle noted, adding this represented a superb performance by the company.
The rest of us will have to wait until Thursday afternoon to find out the full details of the marketing launch, but Harebottle did reveal that the company had spent a lot of time and effort on it, and that it would address multiple media formats, including those used by the all-important millennials, who have a substantial amount of purchasing power.
The shares were up 2.3% at 39p in lunchtime trading.
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