Gemfields generates $23.1m in auction, warns of Montepuez issues
By Josh White
Date: Tuesday 30 Jun 2026
(Sharecast News) - Gemfields said on Tuesday that its first Trade Select ruby auction generated $23.1m, although it warned that lower grades, plant commissioning issues, security disruption and delayed VAT refunds would weigh on Montepuez Ruby Mining for at least the rest of 2026.
The AIM-traded firm said the auction, held from 22 to 29 June, saw 82 of 89 lots sold, representing 348,409 of 374,008 carats offered, at an average price of $66.30 per carat.
Gemfields said the new format was designed to sit between MRM's traditional mixed-quality ruby auctions and smaller mini-auctions, and had received positive customer feedback despite challenging conditions in parts of the coloured gemstone market.
MRM's premium ruby grade fell to 0.03 carats per tonne in the five months to 31 May from 0.06 carats per tonne in 2025, while its PP2 plant has faced availability issues ahead of final commissioning expected in the third quarter.
Gemfields also cited insurgent-linked attacks near the mine, continued illegal mining intrusions of about 700 people per day, and $28.3m of VAT refunds owed to MRM, saying the combined pressures were expected to hit production, quality mix and cash flow.
At 0809 BST, shares in Gemfields Group were down 3.9% at 3.7p.
Reporting by Josh White for Sharecast.com.
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