Alrosa, the Russian diamond mining giant reports that despite a strong Q4 2020, with especially strong sales volumes of smaller diamonds, total revenue for the year fell 7% to US$3bn, output fell 22% to 30m cts and net profit dropped 49% to US$440m, a direct impact from lower sales, as the miner upheld maximum flexibility throughout the pandemic, to avoid stockpiling, as well as a weaker rouble.
Lucapa has announced it has recovered another large stone; a 114ct top white diamond, the 19th +100ct recovered at Lulo, and the third 100+ct rough from the MB46 block, close to the Canguige catchment and priority kimberlites. The frequency of the recovery of three large, high quality stones in barely 8 weeks underscores the potential of the Cacuilo valley and Canguige catchment area. Recently the 16km haul road from the Canguige catchment was finished and Lucapa says it will start bulk sampling the priority kimberlites as soon as the wet season is over.
In a release detailing its operational results for the COVID year 2020 and the last quarter of that year, Lucara clearly demonstrates its strengths, recording a strong performance despite the pandemic. Total revenue (regular tenders, Clara plus the HB and Louis Vuitton agreement) amounted to US$125.3m, compared to US$192.5m y-o-y, a remarkably strong performance considering the impact of the COVID-19 pandemic. A strong Q4, with revenue of US$42.4m at an avg US$402/ct marked a global recovery on the rough market, a trend which is continuing in 2021.
A lovely springtime sun is warming up the Antwerp diamond square mile, boosting temperatures from snowy below zero barely a week ago to a pleasant 15°Celcius. The weather is echoing the sentiment on the market and at Petra Diamonds, as both have emerged from tough times probably stronger than before.
Since the outbreak of the pandemic in March last year, Petra Diamonds was one of the first to shift gears as the world was paralyzed. The Johannesburg sales were put on hold and the miner started focusing its sales on Antwerp, where operations continued despite global lockdowns.
Alrosa's January sales of rough (US$421m) and polished (US$9m) continue on the trend of Q4 2020 with record sales in December. The January figures were up 6% y-o-y, driven by strong demand in China and the US and lower inventory levels in the midstream. The Russian miner increased prices 6-7% in its latest cycle, but continues to allow buyers to defer purchases.
In conclusion of a months-long saga, Dominion Diamonds Mines has finalized the sale of the Ekati Diamond mine and associated assets to Arctic Canadian Diamond Company LTD, a new company formed and owned by DDJ Capital Management, Brigade Capital Management, LP and Western Asset Management Company, LLC, CBC Canada reports. Operations were fully resumed in January, after a restart in November last year, and all workers are expected to return to work later this month.
BlueRock Diamonds announced the sale of a 14.8-carat diamond, recovered in December 2020, for USD167,000 (USD11,300 per carat) in its first tender since the start of the pandemic. During the same tender, they sold an 8.7 carat diamond for USD37,000 (USD4,300 per carat).
In its latest trade update, Gem Diamonds, the mining company that operates the high value diamond Letšeng mine in Lesotho, presented a remarkably good report considering the impact of the pandemic on the global diamond industry.
Rough & Polished reports Angola's authorities have greenlighted the further exploration of the Luaxe concession, located roughly 20km from the Catoca mine, jointly operated by the Angolan governement and Russian miner Alrosa, consisting of one of the most promising deposits discovered in over a decade worldwide. Experts believe the concession has a potential reserve of 350m cts, and estimated annual production of 10m ct, which would effectively double the country's annual output and thus also generate significant aded value in terms of state revenue.
According to Zimbabwe Independent, Anjin Investments, has regained control of a diamond claim in Marange (Portal B), "in unclear circumstances", the news outlet claims in an extensive article. Anjin had to shut operations back in 2015 as the Mugabe administration forced the closure of seven mining companies and the subsequent merger of their assets into the Zimbabwe Consolidated Diamond Company (ZCDC).
Lucapa reports strong Q4 results at its Lulo operations in Angola (volume of carats mined was up 55%, grades were up 47%, amount of carats sold was down 48% (4,269ct) but prices were up 31% y-o-y.
Botswana's Minister of Mineral has approved the renewal and extension of Lucara's mining licence through to 2046, or another 25 years, "another important milestone for the underground expansion of Karowe", Lucara President and CEO Eira Thomas commented. Although the expansion, estimated cost US$514m, has experienced slight delays due to Covid-19 budget restrictions, the five year development period remains on track, with first ore expected to be processed in 2026.
Mining.com reports the troubled Dominion Diamonds has brokered a deal to sell its Ekati mine, not the 40% stake in the Diavik operation, both in the Canadian Northwest Territories to an entity controlled by DDJ Capital Management LLC and Brigate Capital Management LP, in exchange for the assumption of US$70m in debt.
Lucapa has recovered its 16th 100ct+ rough diamond at its Lulo operation in Angola, the 3rd to date this year, a 127ct gem-quality white, which was recovered from the leziria flood plain in mining block 24. The discovery, the first large stone for this particular block, supports the potential of the Lulo alluvial deposit, Stephen Wetherall, Lucapa's MD added in the release.
Mining company De Beers has launched an ambitious vision to reach 12 milestone KPI's, three in each of four key area's - Thriving Communities, Ethical Practices, Protecting Nature and Equal Opportunities, to be achieved by 2030.
By 2030 De Beers wants to
In the auction concluded on November 24, GRIB Diamonds, the Belgium based diamond trader, owned by AGD Diamonds, netted US$23 million for a total of 8,700ct of rough diamonds, significantly exceeding expected revenue, especially for white goods, including three type IIa stones of 199.43ct, 86.29ct and 50.32ct respectively, each sold for US$1m+.
While the pandemic brought about an unprecedented shock to the whole diamond value chain in 2020, in a way it may also have acted as a catharsis of sorts for an industry that has been struggling to regain footing in recent years, in part due to a misalignment of supply and demand.
A Canadian court has granted Rio Tinto's Diavik subsidiary the permission to sell the rough stones from the troubled Dominion Diamond Mines, partner in the Diavik mine, which Rio Tinto was holding to recoup US$90+m in debts, unpaid cash calls to operate the mine.
In Luanda, the state-owned diamond company Sodiam has opened a retail store, in collaboration with KGK, the diamond company that also operates a polishing factory in the country. Earlier, Mines minister Diamantino Azevedo announced the government is going ahead with plans to develop a diamond hub in a free-trade zone, which is said to include a research and training facility as well as a diamond bourse.
According to Mining Weekly, citing Botswana Central Bank data, exports of rough diamonds in Q3 nosedived to -66%. Debswana, the 50/50 joint venture between miner De Beers and the Government of Botswana, representing the bulk of the country's diamond exports, reported exporting a mere US$287m worth of rough in Q3 2020, compared to US$863m in Q3 2019.
Gem Diamonds reports that its Q3 Antwerp tender results achieved an average of US$2,215 per carat, exceeding (pre-covid) H2 2019 prices. The strong results, excluding a little under US$30m of proceeds of the September tender that arrived after the Q3 period ended, and continued cost control are further boosting the miner's balance sheets, to positive cash flow. The latest tender in September included the sale of the 439 carat Letšeng Icon. The miner reopened the mine in Q2 and has fully resumed all activitities at the Lesotho Letšeng operation, including waste mining activities in July.
Petra Diamonds in its trading update for Q1 FY 2021 (July through to September) reports a 10% decrease in production to 974,346ct, which the miner attributes largely to the continued care and maintenance status of the Wiliamson mine in Tanzania. The miner also reports a 33% increase in revenue, to US$82m, as Petra released inventory from Q4 2020 and rough prices at the latest tenders (September and October) firmed up significantly, although still 10% below pre-covid tender results, the company statement adds.
Rapaport reports that Rio Tinto's Diavik subsidiary Diavik Diamond Mines Inc (DDMI) has asked a Canadian court to allow a sale of Dominion owned rough diamonds from the mine, to compensate for outstanding payments to Rio Tinto, amounting to US$90+ million, to be able to continue operations at the mine. Previously, the court had already granted DDMI the right to hold some of the rough as collateral while Dominion is under protection from creditors.
In a press release, Russian miner Alrosa has announced it will extend its long-term customer 2018-2020 contracts through to Q1 2021. Normally, the miner would be evaluating its long-term contracts as well as prospective members of its Alrosa Alliance. Due to the pandemic disrupting normal trade and the continued uncertainty, Alrosa has decided to maintain flexibility towards clients and postpone the planned review of clients and the decisions on new three-year contracts for five months.
In a latest update, Australia based miner Lucapa has adjusted its indicated and inferred diamond resource estimates at the Mothae operation to an estimated 280k ct, 3.1cpht at an average value of US$635/ct and 960k ct, 2.44cpht at an average value of US$601/ct respectively. In the release, Lucapa managing director Stephen Wetherall commented on the 280% increase in indicated resource; " The increase in tonnes and carats, ..., strongly supports an expansion in production at Mothae that the partners are considering"
Junior miner BlueRock operating the Kareevlei mine in Kimberley, South Africa, reports stronger than expected production and higher grades in Q3, or 5,577 ct compared to 3,973ct in Q3 2019, at an average price of US$330 per carat. In May, BlueRock announced it will be collaborating with Antwerp-based tender specialist Bonas Group for the sale of its rough diamonds.
CBC news reports that negotiations around the US$126 million sale of a number of Dominion's assets, including the Ekati mine, to affiliates of owner Washington Companies have reached an "impasse" with no chance to reach an agreement before the deadline of Oct 14.
Petra Diamonds today announced that it has recovered five extremely rare blue rough diamonds at its Cullinan mine, of 25.75 ct, 21.25 ct, 17.57 ct, 11.42 ct and 9.61 ct respectively. The last discovery of a blue rough stone dates back exactly one year ago, and blue diamonds are considered as one of the most rare in fancy colored stones, making it all the more extraordinary that five diamonds are recovered in one week's production.
Osisko Gold Royalties, one of the secured creditors which acquired Stornoway's assets and properties a year ago as well as its debts and liabilities yesterday announced the Renard mine operations will resume later this month, after a four-month suspension due to liquidity issues. The restart plan includes a further cost reduction of $30 million and a commitment to boost working capital with another $30 million by shareholders. Stornoway is also expected to bring over 300k carats of unsold rough to the market later this year.
Mining Review reports that Lucapa's Lesotho Mothae mine, which had been placed on care and maintenance due to the pandemic at the end of March, will resume activities later this year. In addition, the Lesotho government has approved a proposal that will allow the Australia-based miner to market its rough diamonds through direct partnerships with diamantaires, similar to what Lucapa has implemented for its Lulo (Angola) operation. “Mothae is a unique mine and an important contributor to the Basotho nation.
For the second consecutive month, Lucapa had a record-breaking production at its Angolan Lulo operation, recovering 3852 ct, as mining focused on the MB06 Ieziria flood plain.
Ireland headquartered Botswana Diamonds is looking to raise £300,000 (US$394,403) via a share offering to fund further exploration and development of its assets in South Africa and Botswana this year. In South Africa, the company is drilling on the (M8) Marsfontein concession and other identified kimberlite targets at Thorny River, while in Botswana, efforts are focused on the recently acquired Sekaka Diamonds KX36 project.
In a Q&A following the announcement of interim results, GEM Diamonds CEO Clifford Elphick said the company is not pursuing any of Petra's assets. "They are lovely assets but there is a massive debt pile and everyone looks at this in the same way … We’re near the end of all this.”, Elphick said. In the first half of 2020, GEM Diamonds reported a US$1.7 million loss, compared to a US$ 4.2 million profit in the same period last year, and the Letseng mine production forecast was adjusted to 96,000ct down from 100,000ct.
According to an opinion piece by Rough&Polished's Sergey Goryainov, the Russian State Repository may be in the process of buying US$ 1 billion worth of (rough) diamonds from Alrosa, the Russian mining giant, to alleviate the pressure on the company as the industry suffers from the COVID-19 pandemic. The author believes that what he describes as a "bailout" for both the industry and Alrosa by the Gokhran is inevitable and necessary move.
Gem Diamonds announced the recovery of a massive 442ct Type II rough at its Letšeng mine in Lesotho, one of the larger high quality stones recovered this year. The discovery is welcome news at a time when the global pandemic is putting a lot of strain on the global diamond industry, miners in particular. The London listed company's stock jumped 10.7% as the news came out. "A portion of the proceeds from the sale of this diamond will be used to fund a special community project, as agreed with our partners the Government of Lesotho", Clifford Elphick CEO of Gem Diamonds commented.
Alrosa today announced that the company has mined the largest Russian, natural colored rough diamond to date, a 236ct stone of intense yellow-brown color, from its Ebelyakh mine in Yakutia, Russia. The stone is sent Alrosa's research center where it will be studied to decide whether the company will sell it as a rough or cut it in-house. It is not the first time natural colored diamonds are discovered at the alluvial diamond deposit, located on the Anabar River of the Sakha Republic (Yakutia).
According to MiningMX, GEM Diamonds, operating the high-quality diamond yielding Letšeng mine in Lesotho, halved its net debt to $5.5 million (compared to $10.1 million at the end of 2019) as a result of improving efficiency and successfully reducing costs, such as management salary cuts that remain in place, as well as higher than expected sales results, with an average of $1,707 per carat in the first half of the year.
Alrosa, the world's largest diamond producer and Brilliant Earth, the retailing company that focuses on responsibly sourced fine jewelry including natural and lab-grown diamonds, have partnered for an exclusive jewelry collection under Alrosa's "Diamonds That Care" campaign. The pieces, ranging in price from $790 to $2,190, are made of recycled gold and include natural brownish diamonds mined in the Russian Yakutia region.
At its Annual General Meeting presentation, Lucapa, the Australian company operating two of the world's highest $ per carat diamond mines, Lulo in Angola (alluvial) and Mothae in Lesotho (kimberlite), sized up the effects of the COVID pandemic on the company's operations and performance.
Bloomberg reports that in a letter to De Beers' staff, seen by Bloomberg News, the company's CEO, Bruce Cleaver, has communicated the company is looking into ways to reduce costs and increase revenue across all operations. Sales have dropped dramatically since the outbreak of the pandemic and the company fears demand for diamonds is not likely to improve in the short term. According to Bloomberg, insiders believe the restructuring could also involve job cuts and changes to the traditional selling system of sights and sightholders.
Gibb River Diamonds, the company holding the lease on the Ellendale mine in West Kimberley since December 2019, welcomes a recent drop in royalty rate - from 7.5% to 5% - by Western Australia authorities. The Ellendale mine, which in the past produced 50% of the world's typical fancy yellows for Tiffany & C° hasn't produced diamonds since 2015, when former owner Kimberley Diamonds decided to only focus on their Botswana project.
According to Africa Intelligence, for the first time in 45 years, Ivory Coast could be at the brink of restarting diamond mining at four concessions, around the town of Séguéla, owned by company Transactysglasol, with trading office Glasol in Antwerp, headed by new CEO and French national Nicolas de Lesguern. According to Africa Intelligence, production is scheduled to start in November, when the semi-industrial mining sites are operational. In recent years, the country barely produced any rough diamonds, representing 0.02% of global rough diamond production.
Firestone Diamonds is extending the temporary closure of the Liqhobong mine in Lesotho, until April 2021 or until the market improves. Firestone slashed salaries and has let go most of the workers operating at the mine, which is Firestone's main asset. The company's BK11 operation in Orapa region Botswana, has been under care and maintenance for several years.
Botswana Diamonds PLC today announced it has acquired 100% of the Sekaka (Sekaka Diamonds (Pty) Limited (Sekaka) is Petra’s wholly owned operating subsidiary in Botswana) shares of the KX36 diamond discovery in Botswana, alongside two prospecting licenses and a diamond processing plant. The consideration comprises a cash payment of US$300,000 and a 5% royalty on future revenues.
Petra Diamonds has announced it is open to offers for (parts of) the company, after a strategic review of mounting debts, now at US$650 million. Only last year, Richard Duffy took over from former CEO Johan Dippenaar, with the task to turn around the troubled miner's balance sheets. The Covid-19 pandemic now foils the ongoing optimization and restructuring introduced by Duffy, as mines were forced to shut down and the global diamond market came to grinding halt.
Rio Tinto has ended speculation about a potential move to acquire Dominion Diamond Mines' 40% share in the Diavik mine in Canada's Northwest Territories, which would give the global miner full control of the mine in which it currently owns a 60% stake. According to a May 28 court filing, Rio "does not seek to bid" on Dominion's stake, nor does it intend to acquire Dominion's Ekati mine.
According to a Business Wire news release, Canadian miner Dominion has signed a letter of intent with an affiliate of the Washington Companies to sell all of Dominion's assets for approx. US$126 million, and has made an agreement for up to US$60 million in short-term financing from Washington. In April, Dominion filed for and obtained insolvency protection under the CCAA. The agreements will allow Dominion to resume operations at the Ekati mine and meet obligations owed to employees.
Mining Weekly reports that UK-based BlueRock, operating the Kareevlei mine in Kimberley, South Africa, will be marketing its goods through Antwerp starting at the end June, in an agreement with Bonas-Couzyn, the Antwerp-based diamond consultancy and tender house. By choosing Antwerp, the world's largest rough market, over the much smaller domestic market, the company hopes to boost sales as the market recovers from the COVID-19 pandemic.
A Canadian judge has ordered the Rio Tinto subsidiary, in the joint venture managing the Diavik mine, to release Dominion's share of production that Rio Tinto has been holding as collateral for overdue payments. Dominion Diamonds filed for protection last week granting the company protection from creditors.
De Beers has launched its online "Buy platform", a segment of the De Beers Group Auctiones, where Registered Buyers can now buy rough diamonds online. The platform works like any other e-commerce platform, where buyers can search, "view" and select goods, add them to their shopping cart and complete their purchase via a virtual checkout. In addition buyers can create favorite products, which are assorted in four categories; "very high-end", "high-end", "mid market" and "low-end".
Canadian mining company Lucara Diamonds reports a net loss of $3.2 million in Q1, a result of the continued strain on the diamond mining industry and decreased revenues from sales, despite the fact that operations at Karowé have continued throughout the crisis and production was in line with guidance. In the same period last year, the company achieved a net income of $7.4 million, while cash flow dropped to $2.4 million, compared to $10.6 million in Q1 2019.
Star Diamond Corporation recently announced that Rio Tinto Exploration Canada Inc. (RTEC) has commenced the processing of bulk samples from RTEC's trench cutter program at the Orion South Diamond Project in Saskatchewan, Canada. These bulk samples, estimated by RTEC to be approximately 8,271 wet tonnes, were collected in 2019 and are stored on-site in approximately 6,848 cubic metre bulk bags.
Gem Diamonds has been granted permission by the government of Lesotho to reopen its Letšeng Mine following the three week lockdown, with effect from Monday 27 April. The country will remain on lockdown for more than another week, until May 5. The miner said it is taking all of the necessary precautions to protect its people. The mine is located in the Maluti Mountains of Lesotho at an elevation of 3,100 m (10,000 ft). It is the world's highest diamond mine.
De Beers has announced that their first quarter 2020 rough diamond production was in line with Q1 2019 and Q4 2020 output, ending at 7.8 million carats. The miner noted a limited impact from the COVID-19 measures introduced at the end of the quarter in producer countries. Nonetheless, De Beers has revised its production guidance downward by over 20% to 25-27 million carats (previously 32-34 million carats), citing the impact of COVID-19 on mining operations, wholesale trading activity and consumer traffic in key consumer markets.
Mountain Province Diamonds has announced improved production and sales results for the first quarter of 2020, though their sales are currently on hold. In Q1 2020, Mountain Province sold 659,318 carats at an average value of $99 per carat (US$75 per carat) for total proceeds of $65.4 million (US$49.2 million) in comparison to 643,739 carats sold at an average value of $94 per carat (US$71 per carat) for total proceeds of $60.7 million (US$45.8 million) in Q1 2019.
Firestone Diamonds has announced it would shutter its Liqhobong diamond mine in Lesotho likely for "at least" 12 months until the diamond market recovers. The suspension of operations at the mine necessitated by the South African Governmen's directive requiring a 21-day national lockdown in response to the COVID-19 pandemic only added to Firestone's troubles, but the pandemic is starting to take its toll right across southern Africa’s diamond mining sector.
Stornoway Diamonds has decided not to resume activity at its Renard operation despite a provincial classification of mining as "essential operation". "The unprecedented global events we are experiencing have unfortunately led to the board of directors to take this difficult decision impacting our employees and a number of our valued stakeholders.", Stornoway CEO and President Patrick Godin commented.