Mustang Calls First Ruby Tender Results ‘Disappointing’

SourcingNov 06, 2017

Mustang Calls First Ruby Tender Results ‘Disappointing’

The company’s sale of rough rubies from Montepuez saw only eight of 21 “schedules” sold.

Mustang said it accepted bids for 29,463 carats at its inaugural tender of rough rubies mined at Montepuez.

Sydney--Mustang Resources held its inaugural tender of rough rubies mined at Montepuez in Mozambique last week, and is less than thrilled with the results.

The tender was held between Oct. 27 and 30 in Port Louis, Mauritius.

Of 21 “schedules” offered, comprised of multiple lots, eight were sold. Bids for the remaining did not reach their reserve prices and will be held over to the next tender.

Mustang said it accepted bids for 29,463 carats of rough rubies ranging in price from $4.59 per carat at current exchange rates to $1,487.19.

Total sale proceeds are about $545,806 for the company, at an average per-carat price of approximately $18.52.

Mustang said the final results “reflected inadequate volumes in each category,” adding that it now will focus on increasing the quantity of rubies it offers within those categories for which demand was the strongest.

Mustang’s Managing Director Christiaan Jordaan called the tender results “clearly disappointing,” but said the company has gathered valuable market intelligence for its future tenders.

“The feedback from buyers and the results make it very clear that we need to offer increased quantities of rubies in each category,” he said. “This is because buyers and their jewelry customers need to be certain that there are enough similar rubies available to enable them to produce the required number of any particular jewelry item. The tender process has also enabled us to identify those categories that are in high demand.”

The next planned plant upgrade at its Montepuez ruby project will be delayed, reducing expenditures and enabling the company to focus on accumulating more rubies in each of those most desired categories ahead of its next tender, slated for mid-2018.

Around 96,000 tons of existing surface stockpiles of ruby-bearing gravels will be processed in the coming months, while pitting and exploration activities will be focused in areas now identified as hosting the most sought-after rubies, Mustang said.

The company said its bulk sampling to date has only covered a small part of the licensed areas and that it strongly believes there is “considerable potential” to identify additional high-value rubies within its project area. Exploration will focus on areas to the east of the existing bulk sample pits.

Mustang also indicated it plans to acquire rights to explore in additional license areas in the Montepuez ruby field.

Brecken Branstratoris the senior editor, gemstones at National Jeweler, covering sourcing, pricing and other developments in the colored stone sector.

The Latest

CollectionsJun 18, 2021
Piece of the Week: Colette’s Rainbow Eye Pendant

It’s a new addition to the designer’s charm collection.

FinancialsJun 18, 2021
Jewelry Sales Surge in May, Says Mastercard

U.S. jewelry sales were up more than 200 percent year-over-year in May while also exceeding pre-pandemic levels.

Recorded WebinarsJun 17, 2021
Watch: How to Ace the Branding Game

Simon Mortimer offers must-know branding basics for companies that are just starting out or looking for a refresh.

Brought to you by
How to Engage and Sell to Millennials

Millennials were once feared in the diamond industry, but now this younger generation has become today’s largest diamond buying demographic.

CollectionsJun 17, 2021
Foundrae Has an Epic Charitable Giveaway in Honor of Juneteenth

All proceeds of “Juneteenth Medallion” sales, as well as raffle tickets, benefit organizations that support BIPOC.

Weekly QuizMay 20, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of June 14-18, 2021.
Take the Quiz
MajorsJun 17, 2021
Mall Owner Washington Prime Group Files for Chapter 11

The company is implementing a restructuring plan after struggling amid the COVID-19 pandemic.

TrendsJun 17, 2021
Amanda’s Style File: For the Fellas

In honor of Father’s Day, Amanda Gizzi rounds up gifts for Dad.

Brought to you by
A New Golden Age

Gold has had its share of ups and downs over the last 5 decades. Here’s why the metal is having another big comeback.

Events & AwardsJun 17, 2021
Jewelers for Children Brings Back Live Events in Vegas, Dallas

There will also be a virtual component for those not in attendance.