Yes, the auction is getting closer, not too many days to wait now.
Just having a look back at some of wombat's data, particularly the data from Gemfields previous auctions. Given that this is MUS's first auction, I suspect we will present 'Higher & Medium Quality' to auction, which Gemfields did in Dec 2015 in their second auction, as we are sourcing from secondary deposits only.
It would seem that we are retrieving higher quantities than Gemfields were able to then, or now, in secondary deposits.
I doubt, we will be putting up for sale any commercial grade or corundum in our maiden auction.
Gemfields in December 2015, presented 92,136 carats for auction, of 'Higher & Medium Quality' rubies, where 95% were sold when compared to market value, and an average price of USD 317.92 per carat.
I knew I read it somewhere, so my guess of $317 per carat, and clearance of 85% isn't just pie in the sky, nor totally impossible, but maybe improbable.
MUS will possibly present very similar quality level in their maiden auction, to GEMS second auction, but MUS will present around 300,000 carats. No wonder the buyers are turning up, the quantity available to buy the higher level quality rubies hasn't been there before.
Given MUS, still has a lot of their leases to explore, it may take them a while before they need to even consider their primary deposits, which it seems Gemfields had to rely on in recent auctions, as the significant volume at lower quality still equalled dollars, and probably supplied a necessary market.
Gemfields recent auctions presented a significantly higher number of carats, and probably the same volume of higher end quality rubies included, but most of it was lower quality, so the lesser price per carat, but still a decent return on the auctions as a total, and so probably very viable revenue twice a year for a working mine.
Looking forward to the maiden auction result. I suspect it definitely won't equal the USD 617.42 per carat of GEMS first auction, but we are selling, I am guessing, a mixture of 'Higher & Medium Quality' rubies, not just 'Higher Quality', and a lot more of them, so it should be interesting to see what the result is.
I can see that more available to the market, may mean a lesser price, however, that isn't always the case, as the quality supply, in the past, hasn't been sufficient to meet the potential demand, to really determine a real market price for 'Higher & Medium Quality' rubies. Some buyers may not have even bothered to buy previously, as there hasn't been the potential of a regular supply of higher quality rubies.
Interesting to see how the final auction results turn out. Just my odd thoughts and observations as usual, ignore, or not, as you wish.
cheers
gsmaree
MUS Price at posting:
8.3¢ Sentiment: Hold Disclosure: Held
