Things of note in those Announcements:
The company originally sent two parcels of rubies for appraisal, grading and to establish marketing strategies and connections: – An initial parcel of 6,221ct was sent to the US in early 2017 – this included five “special’ stones of >5ct including two 24ct rubies – these have now been cut by renowned gemstone cutter and polisher Meg Barry, and are to be sent to Thailand for inclusion in the rough inventory being prepared for sale in October 2017.
Mustang Resources Limited (MUS)
Independent Investment Research
– A second parcel of 25,000ct was sent to Thailand in March 2017, with this including four “special” stones and a third parcel of 40,000ct is planned for export in May 2017 - a sample of the rubies from the first parcel is shown in Figure 7.
The Company was expecting cash from the sales of the special stones by the end of June, and was looking to an initial larger volume sale of 50,000ct later in H2, CY17 – this was part of an initial strategy of selling cut as well as rough stones to capture the value add, and would also assess direct sales versus auctions – plans were initially to cut stones larger than 1ct, which most likely would be sold to wholesalers
However, after discussions with potential rough stone customers this strategy has been changed to one of selling all rubies in rough parcels at auctions similar to Gemfields – advantages of this method include the potential for competitive tension at the auctions, leading to higher prices, as well as receiving cash immediately upon sale, as opposed to payment terms of 6-12 months for cut stones. This will also prevent the Company, in not selling cut stones, from competing with its own rough stone customers
rubies collected as part of the current bulk sampling programme within tenement 4143L are of comparable quality to those at Mugloto – this has been supported by comments by Mr. Vincent Pardieu of the Gemological Institute of America (“GIA”) made on a site visit to the Montepuez area and as quoted, with his permission, by the Company: – Mustang rubies
“are of high quality with some gemstones showing variety of colour, size and clarity”.
– Work done to date by Mustang is “very encouraging and indicative of a secondary ruby deposit similar to some other deposits GIA has studied in the Montepuez Area"
So it seems Vincent said they are similar quality to Gemfields,
But later said were smaller than expected...
We were going to cut our own,
and sell to wholesalers...then...
Buyers said: Sell to us, then...
screwed us over, to return the favour, as we were going to cut them out of it...
The cut Rubies were supposed to be in the Auction,
But we are unaware if they were,
Or if they got sold...
MUS should be taking their Rubies and meeting with as many of the Top Jewellers directly IMO,
Cutting out the middlemen who are possibly playing games and making $$$.
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