Atlas Pearls Ltd (ASX:ATP) generated a total revenue of $2.4 million from its latest private pearl auction held in Kobe, Japan earlier this month.
Atlas is a fully integrated pearl business with hatchery, seeding, harvesting, grading, trading, design and manufacturing capabilities to sell directly to customers and via its retail outlets.
The company operates pearl farms spread across the Indonesian archipelago, including Bali, Flores, and West Papua.
White and silver pearls got the highest bids
Atlas distribution manager Tim Jones said: “The auction was well attended, and bidding was very competitive with a well-balanced spread of successful buyers.
“111 lots of the 140 lots of loose pearls on offer sold for an average estimated 15% higher prices compared to 6 months ago.
“Good shape white and silver pearls enjoyed the highest bids, indicating a shortage of merchandise in this category by the trade”
Better prices due to shortage in supply
Atlas has earned a reputation as a world leading producer of “the queen of all gems”, the South Sea pearl, specialising in high quality white and silver pearls.
The company is among the few suppliers in the market for this category of pearls and engaged early on with key players in the market who also anticipated a potential shortage.
The company has agreed to grant privileged access to specific harvests to two prominent traders against 12 months unsecured loans which in turn would help the farmer better schedule its harvests and selling events.