Gemfields: Auction results – Trade Select ruby auction and Mozambique Ruby Mining (MRM) update

Gemfields announces the results of an auction of mixed-quality rough ruby held from 22 to 29 June 2026. This marks the Company’s first “Trade Select” auction, featuring a broader mix of ruby qualities as well as newly introduced sapphire categories. Adrian Banks, Gemfields’ Managing Director of Product & Sales, commented: “We are pleased with the outcome of our inaugural ‘Trade Select’ ruby auction.

The Trade Select format was developed to sit between MRM’s traditional Mixed-Quality ruby auctions and the smaller mini-auctions introduced during 2025. It was encouraging to receive positive feedback from customers regarding both the auction format and the composition of the offering. Whilst market conditions remain challenging in certain sectors of the coloured gemstone market, customer attendance was strong and bidding demonstrated continued demand across the categories offered.

I would like to thank the MRM team in Mozambique for their considerable efforts in preparing and delivering this auction despite the many challenges they face. We now look forward to building on these results as preparations begin for MRM’s next Mixed-Quality ruby auction, presently scheduled for October 2026.” The gemstones were extracted in Mozambique by Montepuez Ruby Mining Limitada (“MRM”) which is 75% owned by Gemfields and 25% by Mwiriti Limitada. The proceeds of this auction will be fully repatriated to MRM in Mozambique, with all royalties due to the Government of the Republic of Mozambique being paid on the full sales prices achieved at the auction.

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The auction lots were made available in Bangkok for private, in-person viewings by customers. Following the viewings, the auctions took place via an online auction platform specifically adapted for Gemfields and which permitted customers from multiple jurisdictions to participate in a sealed-bid process. As set out in the announcement of 22 May 2026, MRM has experienced lower-than-expected ruby production, primarily driven by declining recovered grades.

Premium rubies typically account for more than 70% of MRM’s revenue but constitute less than 5% of the weight of rubies produced and sold. In the year ending 31 December 2025, overall premium ruby grade at MRM was 0.06 carats per tonne. In the five months ending 31 May 2026, the overall premium grade was 0.03 carats per tonne.

In the Mugloto domain, which has produced the bulk of MRM’s revenue and constitutes 78% of the ore processed to date, the premium ruby grade was 0.03 carats per tonne in the year ending 31 December 2025. In the five months to 31 May 2026, the premium ruby grade from the Mugloto domain was 0.02 carats per tonne. In addition to the declining grades, MRM has not been able to mine and process the most favourable areas of the concession on account of heavy rainfall during the first quarter of 2026 and commissioning issues with MRM’s Second Processing Plant (“PP2”), as further set out below.

As a result, there will be a material adverse impact on the inventory available for MRM ruby auctions for at least the remainder of 2026. Operationally, the Company is undertaking additional targeted bulk sampling in areas considered prospective for higher-grade material, with the aim of enhancing grade outcomes. In parallel, Gemfields and MRM are maintaining a number of the cost management disciplines initiated in late 2024.

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