I think you have misread some posts. GEM has always had secondary deposits, and mined them, as proven by their first few auction results.
Their recent auctions, and the lower average $ per carat price, have been on much larger volume. The mix it would seem is very large volume from primary deposits, combined with naturally what is mined from their secondary deposits. As you can see the price per carat reduces with more carats offered that are lesser quality.
MUS will have a mix of quality, even from a secondary deposit, but generally it will be higher, than a primary deposit.
Look back to GEM's first few auctions to get some idea, when they actually focused on the higher quality and what the price per carat was even then, remembering, demand has increased, since then.
Whilst GEM's is still offering secondary deposit rubies, it seems their money is being made on volume and not quality.
MUS has approached it differently, and just like GEMS started out, offering the best available, and even that could change over time, just depends on how many secondary deposits are on MUS leases.
It would seem GEM's doesn't have the sustainable secondary deposits, hence it needs the primary deposit volume to make it work, who knows, maybe easier capex wise to mine primary deposits so cheaper, and it helps if you are the only one supplying, or they just don't have sufficient secondary deposits.
Here's the kicker, what if MUS do? That is have more secondary deposits to provide the market with a sustainable high quality supply.
As many have said, the first auction is just the start. Supply & demand will work out the rest and the ruby JORC due sometime next year.
A better punt than most miners, as at least MUS is going to get a return in the next week.
Up to you how you judge it, and just my thoughts as usual, so as always do your own research.
Cheers
gsmaree
MUS Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
