Montepuez Ruby Mining (MRM), which operates a ruby mine in Cabo Delgado, raised $52 million at an international auction held between 5 and 16 October. Results announced on Monday by Gemfields, MRM's majority shareholder, reflect what the group describes as solid demand for Mozambican stones, despite operational constraints that have weighed on production.

According to a statement released by Gemfields, 90 of the 99 lots on offer were sold, representing 90.9% of the total available. Of the 102,099 carats placed for sale, 92,153 were sold — approximately 90% of the quantity offered — at an average price of $564.54 per carat.

Adrian Banks, Gemfields' Director of Product and Sales, highlighted strong demand across the range of sizes and qualities presented, with particularly firm prices achieved for larger rubies and those of superior quality.

Banks explained that the lower volume offered reflects both the operational difficulties recorded during the year and a shift in commercial strategy. Since June, the company has also been conducting 'Trade Select' auctions, in which specific categories of rubies are sold separately.

This structure allows the company to adjust the timing and composition of sales to match available production and market demand. The next auction in this format is scheduled for December. Gemfields notes that results from different auction sessions are not directly comparable, given variations in stone size, colour, and clarity.

The lots were available for in-person viewing in Bangkok, Thailand, before bids were submitted through an electronic platform that enabled participation from buyers across multiple countries.

All proceeds will be repatriated to MRM in Mozambique. According to Gemfields, royalties owed to the state will be paid on the full value of sales.

Operational Pressures at Namanhumbir

The auction follows a period of difficulties at the Namanhumbir operation in the Montepuez district. In earlier communications, the group identified below-expectation ruby recoveries, challenges in stabilising the second processing plant, illegal mining, security risks, and delays in VAT refunds as factors weighing on the business.

In an update published on 30 September, Gemfields indicated that the second processing unit, known as PP2, was largely operational and that ruby recovery was showing signs of improvement. The group cautioned, however, that it was too early to conclude that those gains would prove sustainable.

MRM is 75% owned by Gemfields and 25% by Mozambican company Mwiriti Limitada.