The company, which backdoor listed into OGI Group in 2015, has enjoyed strong market support in recent weeks as its shares have climbed from A4.9c to 9c in recent trade.
The company has 277,852ct in the kitty and expects it will be able to offer more than 300,000ct of gemstones at the maiden tender in Port Louis, Mauritius from October 27.
That’s a big jump in inventory from September 4 when Mustang announced it had 176,500ct.
The substantial growth in the inventory stems from record production rates at Mustang’s Montepuez project in Mozambique.
Mustang’s 1500 tonne per day processing plant has been ramping up successfully over the past two months after some initial challenges with the commissioning earlier in the year.
The company has also seen strong results from its artisanal miner development program following the implementation of bushman jigs and sorting tables.
Managing director Christiaan Jordaan said rising production rates and inventory coincided with very strong interest in the tender from ruby customers around the world.
“The planets are aligning perfectly for our maiden tender,” Jordaan said.
“We have exceeded our most optimistic inventory targets and all the feedback we are getting points to strong demand for rubies among global customers.
“Our tender inventory will be significantly higher than we had expected, opening the door to increased sales and revenue for the company.
“The increased inventory will also help attract leading ruby buyers from around the world, who are looking for critical mass as they seek to meet the strong demand for these stones.”
Montepuez consists of four licences covering 19,300 hectares directly adjacent to the world’s largest ruby deposit, discovered by UK-based Gemfields.
Gemfields, which recently fell to a hostile takeover by its largest shareholder Pallinghurst, reported an average price from its last ruby sale of US$61/ct.
Mozambique is the world’s most reliable supplier of ethically produced high-quality rubies, and Mustang is working to fast-track its project with low-cost bulk sampling.
The global ruby market size was estimated at US$2 billion per annum in 2014, about the same size as the diamond market in the 1950s.
Rubies are the most expensive gemstone after diamonds, with fine rubies of 5ct or more being extremely rare.
Before the discovery of Montepuez, supply was fractured and unreliable, with rubies mainly supplied by small scale and artisanal miners from Burma, Tanzania and Madagascar.
Prices for rubies have also been increasing over the past few years.
