The news from Mustang Resources’ much-hyped maiden ruby auction in Mauritius is all doom and gloom, according to those on the sidelines.

Mustang — the only listed ruby miner in the world — had 405,000 carats on offer at its maiden auction, which took place over the weekend in Port Louis, the capital of Mauritius.

In total, 110 lots were offered on 21 schedules, and 42 ruby buyers attended from countries including Thailand, India, Sri Lanka, Hong Kong, the United States and Europe.

Only eight of the 21 schedules were sold — to Thai and Indian companies — while the remaining 13 didn’t meet the reserve price, said independent gemologist Vincent Pardieu who was at the auction.

“Many people feel disappointed,” he said in an Instagram post.

“In the end, I think that people from Mustang learned a lot about the ruby trade during the past few days. But the lesson seems tough.”

Mustang’s shares plummeted by almost a third yesterday before they were suspended from trading pending a response to an ASX share price and volume query.

Mustang last traded at 10.5c, down from 15c on Friday. The shares have lost 47.5 per cent from their 52-week high of 20c on October 16.

Mustang’s shares dropped by a third after the auction. Source: Investing.com

At the time of publication, Mustang had not released a statement on the outcome of the auction.

Bidders were disappointed because the quality of the rubies was considered low, according to a report in Diamond World News.

“Goods are not graded, it’s really of low quality. As per estimate, goods worth $US500,000 are only expected to sell.

“It was very unprofessionally managed, too. Much hype of second contender in ruby auction business seems to have nosedived,” an attendee told Diamond World News.

Mustang has been contacted for comment.