“Hand on heart, I've probably done more research on the history of ruby than not just anyone alive, but anyone who has ever lived. Based on my study of the historical record, when it comes to production of large, fine gems, there has never been a find of ruby as significant as what was discovered in Mozambique in 2009. Right now, it's raining ruby.” Richard W. Hughes, Red Rain, Mozambique Ruby Pours into the Market. Web article. 2016. www.lotusgemology.com
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The global ruby market size is estimated at US$2billion p.a (2014) - the approximate size of the diamond market in the 1950s. Rubies are the most expensive gemstone after diamonds, with fine rubies of +5cts being extremely rare. Before the discovery of Montepuez, supply was fractured and unreliable, with rubies mainly supplied by small scale & artisanal miners from Burma, Tanzania & Madagascar. Strong demand for rubies of all qualities from US, Europe, India, Thailand and China has seen prices of rubies increase 63% over the past 8 years.
In June 2015 the 25.59cts “Sunrise” ruby ring was sold for US$30million at a Sotheby’s Geneva auction, breaking all previous records for a coloured gemstone. This was an emphatic declaration that rubies, as a premium luxury item, are here to stay.
Expert analysis of Mozambique rubies by gemmological laboratories like those of the GIA (Gemology Institute of America) has proven that premium/“fine” Mozambican rubies are similar to those historically supplied by Burma (Myanmar). Mozambique rubies sold by Gemfields on auction in 2015 fetched more than US$680 per carat and Mozambique has consistently yielded rubies across the quality and size spectrum - including a ruby of 40cts (the "Rhino Ruby").
In 2015, sales of personal luxury goods ballooned to over €250 billion, with luxury jewellery accounting for only 6% of that, showing significant room for growth. For new store openings, Asian retailers are rebalancing their product offering more toward jewellery than watches – a sign that momentum is shifting towards jewellery capturing a larger share of the broader personal luxury goods sector.
Mustang believes that the Montepuez region in Mozambique is perfectly placed to play a significant role in the growth of the ruby market over the coming years and intends to be a major contributor to that growth, as the company goes through its own phases of growth - from a junior mining company to a gemstone producer.