News and Announcements
Mustang Resources Talks to AFR About Plans for First Ruby Auction as Chinese Market Demand Remains High
- Published July 10, 2017 12:00AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
Emerging ASX-listed company, Mustang Resources have recently featured in the AFR in announcing the company plans to hold the first auction of stones from its Montepuez ruby project in Mozambique, during October 2017. Through low cost, high margin operations, the company intends to generate significant revenue and deliver significant value to shareholders.
KEY TAKEAWAYS:
- Shares in Mustang, trading at 4.3¢ a share, fell from 7.5¢ in April when it suddenly abandoned plans to sell some cut stones, instead opting to sell only rough stones at auction.
- Chinese demand expected to grow, as rubies demonstrate wealth, status and emotional commitment.
Chief Executive, Christiaan Jordaan, said while the potential for Mustang to be a target “sometimes keeps me awake”, the junior had a long way to go before it was a substantial player in the market.
“China is definitely one of the major growth markets that we see coming through,” Mr Jordaan said. “Rubies are very sought after in China due to their religious and cultural significance and it is for that reason Fosun sees value in controlling something like Gemfields.”
Mr Jordaan said he was confident rough auctions would generate better returns and that Mustang’s entry into the market would not hamper prices.
“We are confident there is more than enough room for our supply in an organised sales process that can supply the market and stimulate sizeable growth from where it is today as a $US2 billion per annum industry.”
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