Gemfields Achieves Record-Setting Revenue from Ruby Auction
AIM-listed Gemfields PLC has announced the results of its recent ruby auction in which total sales hit $43.2 million, a new record for the multinational natural resources company.
Hosted in Singapore from December 3-8, the auction saw over 62,936 carats sold, with over 50 companies from Austria, China, Germany, India, Israel, Japan, Sri Lanka, Thailand, the United Kingdom and the USA bidding on items.
The auction consisted of predominantly higher quality rough rubies (treated and untreated material) that were extracted from the Montepuez ruby deposit in Mozambique by Montepuez Ruby Mining Limitada.
"We are delighted to announce yet another set of record-breaking auction results, said CEO of Gemfields Ian Harebottle. “The Montepuez ruby deposit, coupled with Gemfields’ transparent and well-regarded auction platform, have had an indelible and positive impact on the global ruby market and we look forward to participating in the continued growth of this industry.”
The record-breaking auction also included the sale of its 40.23 carat “Rhino Ruby”, which was sold for an undisclosed amount. According to Harebottle, the sale of the African ruby will assist in countering rhino poaching.
“Due to the size and character of this ruby, and the sheer magnitude of the challenge of protecting African rhinos, my colleagues and I have named it the ‘Rhino Ruby’ and we look forward to following its progression from its current rough form all the way through to a faceted gem and finally being set in a magnificent piece of jewelry.”
This is the third auction by Gemfields this year.
“The three auctions we have hosted so far this financial year, two of emeralds and one of rubies, have yielded aggregate revenues of $94 million, a superb performance for Gemfields which every member of our devoted and disciplined team should be deservedly proud,” Harebottle said.
Proceeds from the auction will be paid to Montepuez Ruby Mining Limitada, which Gemfields has a 75 percent interest in, as well as all royalties due to the Government of Mozambique being paid on the full sale price achieved from the auction.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.