De Beers reports the value of its provisional sales for Cycle 10 2017 (representing sales as at 11 December 2017) at $450 million, a modest drop from actual sales of $466 million in Cycle 9 and a nearly 7 percent increase from the $422 million in sales for the same cycle in 2016. It should be noted that De Beer’s provisional sales value for Cycle 9 was $455 million, later adjusted upward to $466M. For the year to date, De Beers has sold $5.306 billion in rough diamonds (noting the provisional nature of Cycle 10), compared to $5.587 billion in sales last year, a 5 percent decline.
Bain & Company, together with the Antwerp World Diamond Centre (AWDC), has published their seventh annual report on the global diamond industry, "The enduring story in a changing world", covering industry developments in 2016 and the first half of 2017 as well as the challenges the industry faces and how it is turning them into opportunities. Their report looks at key issues along the value chain, from rough-diamond production and sales, to midstream performance and global diamond jewelry demand in major markets.
De Beers Group has announced that its Auction Sales business is to transition Fixed-Price Forward Contracts to core business status, following the success of the pilot program that was launched in January 2017. Fixed-Price Forward Contracts offer the opportunity for Auction Sales customers to secure guaranteed access to bespoke future supply contracts, with certainty over the price to be paid when each contract reaches maturity.
In November 2017, ALROSA Group sold US$334.2 million worth of rough and polished diamonds. Rough diamond sales by value amounted to US$325.8 million, while polished diamond sales earned US$8.4 million during the month. This follows a month in which the Russian miner sold $326.7 million in rough stones, and represents a 36% increase compared to rough diamond sales in November 2016. Polished sales declined slightly from the $9.6 million in polished diamond sales in the same period last year.
According to figures released by the Antwerp World Diamond Centre, the Antwerp diamond trade experienced an increase in activity nearly across the board in November comparatively, likely tied to events in India and U.A.E. The volume of rough diamond exports surged by 107% compared to October and 142% year-on-year, reaching 14.6 million carats during the month. The value of those rough exports also spiked by 55% compared to last month and 22% year-on-year, achieving $1.28 billion.
De Beers Group today announced three changes to its Executive Committee. Neil Ventura, currently Executive Vice-President, Auction Sales, will become Executive Vice-President, Strategy and Innovation. Paul Rowley, currently Executive Vice-President, Global Sightholder Sales, will become Executive Vice-President, Diamond Trading. Alessandra Berridge, currently Lead Legal Counsel for M&A at Anglo American, will become Executive Vice-President, Commercial and Partnerships.
The 709-carat "Peace Diamond", considered the 14th-largest rough diamond in history and recovered by artisanal miners in Sierra Leone’s Kono district in March, sold at Rapaport's auction in New York for $6.5 million, approximately $1.2M less than was originally offered for the stone. This despite - or perhaps because of - its tour through the major diamond trading centers. Renowned jeweler Laurence Graff was the buyer. Martin Rapaport, surrounded by Sierra Leonean officials at their press conference in New York, apologized that his efforts did not yield what they had hoped.
Firestone Diamonds commenced production at the Liqhobong diamond mine in Lesotho in October 2016, developing the new mine on time and under budget and hitting its early operational targets; however, lower than expected diamond prices achieved have forced the young miner to revise their plan. They held their first sale in Antwerp in February 2017, and on 30 June 2017 achieved commercial production. In late September, they reported they have sold all 505,706 carats recovered, for US$41.3 million, at an average value of US$82/ct.
DDA Trading Bvba has announced its fourth sale of Namibian Marine rough diamonds. DDA will be offering approximately 22,000 carats of full run-of-mine, original marine goods of gem quality. Viewings will take place by appointment in Antwerp at DDA Trading’s office in the Antwerp Diamond Bank from November 28 to December 6 with the sale closing on Wednesday 6.
Check out the entire December schedule of rough diamond tenders in Antwerp here.
Mountain Province Diamonds, a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories, earned $19 million from their ninth tender of rough diamonds in Antwerp. It was the lowest haul in terms of overall value since their fourth sale of the year in May, but prices remained stable to firm, generally averaging about 2% higher than the eighth sale across the full assortment profile.
Lucapa Diamond Company and its partners, Endiama and Rosas & Petalas, have completed their eighth sale in 2017 of alluvial diamonds from the Lulo Diamond Project in Angola, earning gross proceeds of US$7.3 million (A$9.6 million), representing an average price per carat of US$1,770 (A$2,332) from 4,126 carats. The latest sale brought gross proceeds from Lulo diamond sales to date in 2017 to US$31.6 million at an average price per carat of US$1,668.
Anglo American’s De Beers’ rough diamond sales for the 9th cycle saw a 21% increase from the previous cycle, which CEO Bruce Cleaver says is due to “an uptick in demand from our customers as retail orders increase ahead of the Christmas season.”
Russian diamond-mining giant ALROSA's rough diamond sales figures in October totaled $326.7 million, which represents a $20 million increase over September but still lags far behind the $430.8 million sold in October 2016. Including polished diamond sales, good for $10.9 million in October, overall revenue for the month was $337.6 million.
Production from the Grib diamond mine, the source of the stones sold in Antwerp by Grib Diamonds, is expected to reach 4.4 million carats in 2017, representing a 16% increase over the 3.8 million carats last year. This is according to Alexey Genkin, general manager of Grib Diamonds in Antwerp, who informed Rapaport News of the increase during a recent visit to the Israel Diamond Exchange. "The plan is to raise production to 4.9 million carats in 2018, he said in the interview", and indicated that sales should increase in parallel with production.
The Antwerp diamond industry had a solid month of trading in October, particularly on the export side, as the value of rough and polished exports both took a turn for the better despite soft midstream demand for rough and a seasonally slow polished landscape. Furthermore, according to figures published by the AWDC, the trend of high volumes of low-value rough exports abated for the first time in months, as the increase in the value of rough exports (+15%) nearly kept pace with the increase in volume (+19%) on a year-over-year basis.
Vancouver-based Lucara Diamond with operations in Botswana made several announcements yesterday (Nov. 2), starting with news of its positive Preliminary Economic Assessment for taking its Karowe Mine underground, which would extend the life of the mine another ten years to approximately 2036.
ALROSA held an international auction for the sale of special size rough diamonds (+10.8 carats) in the Eurasian Diamond Centre in Vladivostok from October 16 to 27. The company sold 66 stones with the total weight of 1,084 carats, out of a previously-announced 72 gem-quality lots with the total weight of 1,170 carats. The total sales revenue amounted to $9 million.
Russia mining giant ALROSA recently confirmed the company’s Sales Policy Concept for 2018-2020 as the new contract period approaches; long-term contracts for the sale of rough diamonds with large trading, cutting and jewelry companies for up to three years will remain the cornerstone of ALROSA’s sales, though some changes have been introduced. Namely, ALROSA is planning to switch over to annual mutual approval of the volume and assortment within three-year contracts.
DDA Trading, part of the DDA Group, has announced its third sale of Namibian Marine rough diamonds, which can be viewed in Antwerp from Monday the 6th to Tuesday the 14th of November. The sale will close on Tuesday, 14 November. DDA Trading will be offering approximately 15,000 cts of full ROM, Original Marine Goods of gem quality. The goods are from the underwater concessions of Samicor.
Namdeb, a 50/50 joint venture between the Namibian government and Anglo American’s diamond unit De Beers plans to close four mines by 2022 in the southern African country, reports Reuters following a statement made by a union official in a local newspaper. The Namibian Sun quoted Mineworkers Union of Namibia Oranjemund branch chairperson Mbidhi Shavuka as saying “We understand that it is the nature of the resource; diamonds are finite." The mines affected are Elizabeth Bay Mine, which will be shut down at the end of 2018, Daberas at the end of 20
Koin International will hold a rough diamond tender in Antwerp from 7-16 November, featuring a wide variety of African goods. They will present an enlarged original production of Meya Minings (Sierra Leone) as well as, for the first time, the original Allotropes Run of Mine (Sierra Leone).
India's exports of cut and polished diamonds gained nearly 6% in value year-over-year in September, reports the Gem and Jewellery Export Promotion Council (GJEPC). The Indian trade exported $2.65 billion worth of polished diamonds in September 2017 compared to $1.82 billion in the same month a year earlier, according to provisional data. For the first half of the financial year to date (April-September), India's polished exports are up by 1.7% in value terms, currently sitting at $11.9 billion, compared to $11.7 billion a year earlier.
The Government of Sierra Leone has appointed the Rapaport Group as the marketing and sales agent of the "Peace Diamond". The 709-carat diamond, discovered by a local pastor and diamond digger in the village of Koryardu, is the third-largest diamond ever found in Sierra Leone and the 13th-largest ever to be unearthed. The Peace Diamond is special because it is a development diamond, Rapaport said in a statement. Over 50% of its sale value will directly benefit the community where the diamond was discovered and the people of Sierra Leone.
Speaking at the opening day of the Dubai Diamond Conference, at the Dubai Multi-Commodities Centre (DMCC), Peter Meeus, Chairman of Dubai Diamond Exchange (DDE) said the Value-Added Tax (VAT) set to be introduced in the UAE from next year could deal a crippling blow to Dubai's loose diamond trade. “The possible cost implications of a VAT introduction for UAE traders are huge,” Meeus said. “Winter is coming,” he added, "because in a business where profit margins are very thin, every quarter of a per cent is important to traders handling billions of dollars to decide where to ship." He furthe
De Beers Group today announced it earned $370 million in rough diamond sales (Global Sightholder Sales and Auction Sales) for the eighth sales cycle of 2017, making it the smallest sight in terms of value since the company started publishing its sales results in 2016. The value of diamond sales in the eighth cycle is 27% lower than the $507 sold in Cycle 7, and 25% lower than the same period a year ago.
High jewelry houses are increasingly going straight to the source to acquire rough diamonds that they will turn into their beautiful creations, writes Ming Liu in a feature for CNN. Typically, the larger category of rough diamonds are obtained by specialist diamond cutters and polishers who analyze each stone to determine the ideal cut in which to shape them, and only after this process are the polished gems usually presented to high jewelry houses.
In 2015, CAP Conseil, a sustainable development consultancy based in Belgium, presented the Antwerp World Diamond Centre (AWDC) an idea for a fully ethical and traceable diamond jewelry project from small-scale origin. Two years later, the first MY FAIR DIAMOND collection has become a reality.
Pallinghurst has announced the results of an auction of higher quality rough emeralds held by Gemfields plc (“Gemfields”, which is 100% owned by Pallinghurst) - its first emerald auction since Pallinghurst took over the company - held in Lusaka, Zambia, from 2 – 5 October 2017.
ALROSA will hold an international auction for the sale of special size rough diamonds of 10.8+ carats in the Eurasian Diamond Centre in Vladivostok from October 16 to 27, the company announced in a press release. The Company is putting for sale 72 gem-quality lots with the total weight of 1,170 carats; the largest one weighs 47.55 carats. All the stones to be auctioned were mined from the deposits of PJSC ALROSA, and its subsidiaries – JSC Almazy Anabara and PJSC ALROSA-Nyurba. A total of 67 companies from Belgium, India, Israel, China and the USA have applied for the auction.
Canadian junior miner Diamcor Mining Inc.
In September 2017, Russia's ALROSA Group sold $309.7 million worth of rough and polished diamonds, with rough diamond sales amounting to $305.8 million and polished diamond sales $3.9 million. For rough sales, this result represents a 29.7% decline compared to September of 2016, but is also the highest sales figure since June 2017, and a nearly 19% increase from the $258M sold in August.
Stornoway Diamond Corporation has released its third quarter production and sales results from its Renard Diamond Mine in Quebec, with better ore grades leading to higher carat recoveries; the junior miner also saw growth in carats sold and an improving price per carat, though the issue of diamond breakage has yet to be solved. During the quarter, 506,380 tons of ore were processed compared to the plan of 540,000 tons (-6%).
The Bureau d'Évaluation et de Contrôle de Diamant et d'Or (BECDOR) in the Central African Republic, which oversees the country’s production and trade of diamond and gold, maintains a database and assesses the value of diamond parcels that are to be exported from the country, has just set up a new price list - defining mineral prices between government and traders. The new price list for these mineral resources is designed to enable the State to have enough financial resources to meet its obligations, reports APA News (Agence de Presse Africaine).
The trend of high volumes of lower-priced rough diamond exports from Antwerp that started in full force during May continued to define the rough trade through the third quarter (July-Sept.), while the diamond capital’s polished trade recorded somewhat soft results. According to figures published by the AWDC, on a year-over-year basis, the volume of rough diamond exports during the quarter increased nearly 12%, totaling over 27 million carats, while their value actually declined by 13% to $2.7 billion. The volume of rough imports also increased 1.5% while their value also tumbled by 13%.
According to The Economic Times, Indian diamond traders that participate in rough diamond auctions at Mumbai's Indian Diamond Trading Centre (IDTC) are complaining that taxation issues are reducing their activity to mere window shopping. "Diamantaires can see the rough diamonds they bid for at the IDTC, but the delivery doesn't happen locally .. despite their successful bids at Bharat Diamond Bourse", the newspaper writes.
Firestone Diamonds sold a total of 195,330 carats at their latest tenders in July and September 2017 in Antwerp, netting total sale proceeds of US$13.5 million, including the sale of the company's second >US$1 million stone. Nonetheless, the average value per carat fell to $69 from $107/ct.
On September 27, ALROSA President Sergey Ivanov held a meeting with representatives of U.S. diamond industry: the President of U.S.
GIA senior industry analyst Russel Shor, in his recent article, "Diamond Producers Aim for Lower Qualities in Today’s Market", explains how sophisticated mining techniques enable major diamond miners to target their drilling to meet polished diamond demand.
At long last, Lucara Diamond has sold the 1,109 carat Lesedi La Rona - the largest rough diamond in existence - recovered from the Karowe mine in Botswana on November 16 2015, for $53 million ($47,777 per carat) to Graff Diamonds.
The Federation of Belgian Diamond Bourses (FDBD), the umbrella organization for Antwerp's four diamond bourses, has elected Philippe Barsamian as president. Mr. Barsamian has been a member since 1974 of the Antwerp Diamond Club. He became a member of the ADC's board of directors in 1998, serving as managing director from 2000 to to 2002, and as vice-chairman since 2002. He has also been a member of the Federation of Belgian Diamond Bourses since 2006, and was a member of the Antwerp World Diamond Centre's Board of Directors from 2008 to 2014.
Canadian miner Mountain Province Diamonds Inc., a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories, today announced its recently completed seventh diamond sale in Antwerp was the largest to date in terms of volume and value.
Petra Diamonds Ltd., the London-based diamond miner with mining operations in South Africa and Tanzania, reported its FY 2017 revenue up 11% to $477.0 million (FY 2016: $430.9 million), though its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $157.2 million from $164.3 million in the year before due to delayed ramp-up of the expansion programs and higher cash costs. The miner's net profit after was down 69% to $20.7 million (FY 2016: $66.8 million).
Government authorities in Tanzania have seized a shipment of diamonds belonging to London-based Petra Diamonds, saying the miner under-declared the value of its mineral exports. On August 31, customs seized a parcel containing 71,654 carats rough gems at the Dar Es Salam airport as they were being exported to Antwerp by Williamson Diamonds, in which Petra holds a 75% stake and the Tanzanian State 25%.
Dominion Diamond Corporation has announced an auction of fancy yellow rough diamonds in cooperation with I. Hennig Tenders. The auction viewings will take place in Israel and Antwerp. The auction will commence with viewings in Israel from October 29 to November 1, 2017 and will conclude in Antwerp from November 6 to 10, 2017. Participation in the viewings and the auction is by appointment only. For more information and to arrange a viewing request email firstname.lastname@example.org.
Alrosa today announced the results of its rough specials and polished diamond auctions, held at the Eastern Economic Forum. The rough specials of 10.8+ carats, 1,293cts total achieved a total sales price of USD14.8 million, while 33 of the 36 polished stones, 2 to 12 carats were sold for a total sales value of USD 1.7 million. According to Alrosa VP Okoyomov the auctions were attended by some 50 companies from the US, India, Israel, Belgium and the UAE.
The value of polished diamond exports from Antwerp jumped by 7% y-o-y as their volume surged by 30% in the month of August. The sharpest value increase was in exports to Switzerland (+84%), while those to the US remained flat and those to Hong Kong fell by 10%. Polished imports fell by 14% in volume but only 3% in value. Meanwhile, the volume of rough diamond exports from Antwerp remained comparatively high in the holiday month of August as the industry took a three-week break.
According to yesterday’s media release, De Beers’ rough diamond 7th sales cycle fell by 12% to $505 million, from July’s $576 million. This represents a 21% decrease over rough diamond sales valued at $539 million at Sight 7 a year ago. For the first six cycles of the year to date, De Beers' rough diamond sales are valued at $3.50 billion, a 1.5% decline compared to the $3.56 billion sold during the first six cycles of 2016.
Russian diamond mining giant ALROSA announced that its revenue in H1 2017 fell by 17% in current value terms to $2.66 billion (RUB 155.6B), while net profit tumbled by 46% to $840M (RUB 48.9B).
The De Beers Group today announced it will invest more than $140 million in marketing this year - its biggest spend since 2008, when the Group was spending an estimated $100 million annually. The increased investment will be focused on generating further consumer demand for diamond jewellery in the leading markets globally, with the greatest spend targeted in the US, China and India, the company states.
According to an article in The Kommersant Daily, Russia's Ministry of Finance has prepared a 'roadmap' for the development of Russia’s diamond manufacturing industry, which could become one of the biggest reforms in its history. "In particular", the news agency writes, "it is said to be aimed at serious mitigation of state regulation and reducing the tax burden on Russian diamond manufacturers, as well as at expanding their access to raw materials. This threatens to revise the marketing and investment policy of ALROSA and add to its financial burden.
Merlin Diamonds Ltd has shipped a parcel of rough diamonds to Koin International (Koin) following the receipt of the requisite Kimberley Process Certificate for an auction commencing on August 30. The Merlin diamond mine in Australia’s Northern Territories is famous for producing large, high clarity, white, high value diamonds, including the largest diamond ever unearthed in Australia, at 104.73 carats.
Russian diamond mining giant ALROSA recently announced that it has renewed the contract of Vice President Yury Okoyemov, who has been in charge of the Russian diamond miner's sales policy for eight years. Okoyemov is one of the authors of ALROSA's current system of selling rough diamonds, focused on long-term contracts. This system was introduced after the financial crisis of 2008-2009, when the auction sales that ALROSA previously focused on virtually stopped.
Botswana's exports of rough diamonds produced at the major mines the country fell in the first half of 2017 by 8.6% compared to the same period a year earlier, and 25% compared to the second half of 2016, according to statistics from the Bank of Botswana. In total, the country exported rough diamonds valued at $1.65 billion during the most recent six month period, down from $1.81 billion in H1 2016 and $2.21 billion in H2 2016. First quarter sales during the year were strong, but tapered off in the second quarter, falling to only $105.9 million in June.
Despite ongoing breakage issues during processing, Canadian junior miner Stornoway Diamond experienced an uptick in prices for rough diamonds from its Quebec mine during the second quarter of 2017. At its two tenders held in Antwerp during the period, Stornoway achieved average diamond pricing of US$87 per carat, compared to US$81 per carat in the first quarter. “We are particularly encouraged by the steady increase in pricing for Renard diamonds as the market familiarises itself with our production,” said company President and CEO Matt Manson.
Let’s talk about the Lesedi [La Rona, 1,109-ct rough diamond]. I use this analogy. Everybody [on the call] knows one or two wealthy people who could go out and buy a Lamborghini at $250,000. What we’re asking for the stone is for somebody to go out and spend the equivalent of 280 Lamborghinis. And I use that as an example because I don’t think people quite understand the quantum of money we’re looking at here. And what you’re buying is something for which you’re going to have to rely on expert opinion to give you the full details of what you can expect on the stone, without really knowing the full outcome, the quality. We do have one or two options [to sell it]. If that doesn’t pan out, I think most [surely] within the next six weeks to eight weeks, we’ll most [likely] look to enter into a partnership.
- William Lamb, CEO Lucara Diamond Corp., on possibility of revenue-sharing partnership to sell the 1,109-carat Lesedi La Rona diamond
The trend of high volumes of rough diamond exports from Antwerp continued in July, while the diamond capital’s polished trade showed signs of life among persistently soft results. According to figures published by the AWDC, on a year-over-year basis, the volume of rough diamond exports increased significantly (20%) for the third month in a row (+55% May, +53% June), totaling nearly 11 million carats, while their value actually declined by 4% to $1.1 billion. The volume of rough imports also increased 15% while their value tumbled by 14%.
Lucara Diamond Corp. the Canadian junior diamond miner whose key asset is its 100% owned, state-of-the-art Karowe Mine in Botswana reports strong Q2 results despite a decline in mined ore volumes and carats recovered, as higher value recoveries compensated for lower grades. Q2 revenue was $79.6 million or $1,336 per carat from 62,434 carats total, which compares favorably to Q2 2016, where Lucara sold $77.7 million at $1,017 per carat from 107,801 carats total (figures exclude the 2016 sale of the 813-carat Constellation diamond for $63.1 million, for a more accurate comparison).