According to Reuters, De Beers, together with the government of Botswana is looking into (temporarily) shifting its sight viewings from Gaborone, Botswana, to major trading hubs, closer to their clients, for example in Antwerp. Reuters cites De Beers Executive Vice President, Diamond Trading, Paul Rowley; “If we can move our product closer to them it would give us the flexibility to restart sales as soon as the markets reopen”.
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".
"Can't an overflowing river upstream, cause a lot of damage, from the midstream all the way up to the delta? As the crops along the overflown river's path would be washed out, wouldn't this cause a lot of famine, for an unwanted period of time? Shouldn't the flow be controlled before such a scenario happens? Sometimes, man-made dams are necessary, with some pains in the near future, but fertile and fruitful in the long run..."
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.
Diamond mining company De Beers announced that its Chief Financial Officer, Nimesh Patel will be joining Spirax-Sacro Engineering. Patel will leave the company at the end of July, a successor remains to be named.
The lockdowns and social distancing measures introduced in response to the outbreak of the coronavirus has forced many if not most businesses to close and educational courses to be delayed. This has spurred industry organizations and associations to take action and set up initiatives to help people through the crisis. As of today, De Beers Group Institute of Diamonds is offering their Diamond Foundation Course for free (normally $250) to the diamond industry.
De Beers has cancelled its third rough diamond sale (sight) of 2020 in response to the logistical difficulties arising from the COVID-19 pandemic. "Due to the public health restrictions on the movement of people and product in Botswana, South Africa and India, which prohibit customers from traveling and prevent the shipment of goods to customers’ international operations, De Beers Group will not hold its third Sight of 2020," the miner wrote in a press release.
De Beers third sight (rough diamond sale) of 2020, scheduled for March 30 to April 3 in Gaborone, will go ahead as planned despite Botswana’s announcement of a travel ban on foreigners arriving from “high risk” countries that include Belgium, China and India. Many of the companies that participate in De Beers’ sales are headquartered in these countries.
The optimism at the beginning of the year regarding improved demand for rough diamonds has shifted to uncertainty following the outbreak of the COVID-19 coronavirus; as expected, De Beers' sales at the second sight of the year took a nosedive, ending at a provisional $355 million. That result is 36% off the pace of their first sale of the year ($551 million) and 28% lower than the $496 earned at the second sight of 2019.
At meetings in Botswana coinciding with its second rough diamond 'sight' of 2020, De Beers detailed to clients its plans to scrap the one-size-fits-all supply model and create three different types of contract: manufacturer contracts, dealer contracts and integrated retailer contracts, a company representative explained to us. Each type of contract is said to be designed around the broad needs of the three types of business model to which they apply. The move is designed to help the diamond miner ensure that each buyer gets the stones most suited to its needs and business type.
De Beers Group reported its preliminary 2019 financial results today (Feb.20), confirming the already well-documented declines experienced across the global rough diamond trade in 2019. The average price earned per carat and a decline in sales volumes were the obvious and main culprits, but these were just the visible results of a whole raft of challenges the world's most famous miner faced last year - along with the rest of the industry - starting with the oversupply of polished in the manufacturing and midstream segments.
Until now, De Beers' laboratory-grown diamond jewelry brand Lightbox has issued no grading reports about its diamonds, enabling it to keep its pricing is straightforward ($800 a carat, $400 for a half carat, $200 for a quarter carat). De Beers says it approach the product in this way because man-made stones are mass-produced and do not deserve the individual attention that mined diamonds get.
Indian diamond manufacturer and exporter Star Rays announced it is working towards becoming India’s first carbon-neutral diamond company, highlighting its commitment to sustainable business practices.
Botswana reportedly plans to conclude negotiations with De Beers on a diamond sales agreement by the end of April to replace the current 10-year deal that expires in January, write Matthew Hill and Mbongeni Mguni for Bloomberg.
De Beers Group today announced the successful conclusion of its patent infringement action against IIa Technologies in Singapore, which was found to have infringed Element Six synthetic diamond patent. IIa Technologies was found by The High Court of Singapore to have infringed an Element Six patent for proprietary synthetic diamond products and their method of manufacture, confirming the validity of Element Six's patent and reinforcing the business’s intention to defend its intellectual property (IP) rights.
In a wide-ranging keynote address at the African Mining Indaba taking place this week in Cape Town, Anglo American CEO Mark Cutifani laid out his vision for the mining industry and the steps it must take to "connect the future of mining with emerging and next-generation societal values. These are the values of increased transparency, responsible technological innovation, sustainability and shared prosperity, all of which are emergent in our world and are shaping a very different future society."
De Beers Group Industry Services has announced a new collaboration with leading US wholesaler, RDI Diamonds Inc., to become its premier source of diamond grading reports, the company stated in a press release. It will be the first time De Beers has provided grading services in the US.
As anticipated, De Beers first rough diamond sight of 2020 bounced back to historical levels, earning $545 million (provisional result) at their January sale. The January sale is typically one of the largest of the year as the industry replenishes their stocks following the holiday season and the 2020 iteration did not disappoint.
Mountain Province Diamonds turned in a very strong production performance at the Gahcho Kué mine in Canada, particularly in the fourth quarter, but a 15% decline in the average price achieved for their rough diamonds over the course of 2019 dragged their proceeds down. A slightly lower recovery grade also curtailed their carat recovery, which ended just below 2018 levels.
De Beers Group Q4 rough diamond production decreased by 15 percent to 7.8 million carats from 9.1 carats a year earlier, driven by lower production levels in South Africa and Botswana, the company announced this morning.
Angola's industrial diamond miners produced 9.09 million carats in 2019, a decline of 5% on the year. Adding semi-industrial production to industrial output, the total was 9.12 million carats. The figures came courtesy of Ganga Júnior, the president of Angola’s state diamond exploration, mining and licensing company, Endiama. He attributed the declline (4.8% the actual figure cited) to the closure of a diamond mine. He said the semi-industrial diamond sector had accounted for the production of 35,856 carats last year.
De Beers might "significantly reduce" its number of sightholders and could be introducing changes to the way it allocates and sells its rough diamonds, according to Thomas Biesheuvel of Bloomberg. The miner's current six-year contract with buyers expires at the end of 2020.
Forevermark, the diamond brand from De Beers Group, recently unveiled the first boutique in its Next Generation Retail Concept, located within renowned jewellery department store, Caibai in Beijing, the company writes. They say that the the newly renovated 100 square metre boutique "breaks away from the traditional across-the-counter service, inviting consumers to discover the world of Forevermark through an immersive, interactive and informative experience," adding that this is the first time Forevermark has offered this kind of consumer experience within one of its retail partners.
De Beers is moving to expand exploration at its Gahcho Kué diamond mine, while Dominion Diamond Mines (DDM) is looking to expand a major exploration program east of Ekati mine, according to several Canadian news outlets. In a Dec. 31 submission to the Mackenzie Valley Land and Water Board, De Beers indicated it would be exploring 11 targets of interest by late February.
De Beers brought a tumultuous 2019 to a close on a positive note, as provisional rough diamond sales of $425 million at their Cycle 10 sight represents their highest earnings in seven months since the April sight and the fourth straight sight with increasing sales. While it does not quite match the $544 million earned at the final sight of 2018, it does demonstrate that demand for rough is stabilizing - though their buyers did not really have much say in the matter, as the miner had withdrawn the additional flexibility provided to sightholders since July.
Having already revised their 2019 full-year production guidance downwards to ~31 million carats in response to a backlog of polished diamond inventories in the midstream and weaker trading conditions, De Beers' parent company Anglo American yesterday announced it is lowering its diamond production estimate by a million carats in 2020 and 2021. Citing "challenging market conditions," Anglo American notes that De Beers' year-to-date revenues have fallen 26% since 2018, due to lower volumes of sales, a weaker product mix and a softening price index.
Forevermark, the diamond brand from De Beers Group, today announced it will launch in five jewelry stores in Belgium through a partnership with Gautam Diamonds. Forevermark jewelry will be available in Gautam stores in the historic Grand Place/Grote Markt and Galerie de la Reine/Koninginnegalerij in the city, as well as in three Antwerp Diamonds by Gautam stores in Brussels Airport.
The De Beers Group has created a new booklet to clearly differentiate between two "entirely different" products, with two entirely different value propositions, which now form part of its product portfolio: natural and laboratory-grown diamonds.
The price cut De Beers introduced for the November sight (Cycle 9) appears to have generated some movement in the rough diamond market, as the miner sold (provisionally) $390 million at its latest sale. This marks the third straight sight with increasing sales and a 31% jump over the $297 million in sales at the previous sight, though it is still 12% lower than in Cycle 9 a year ago.
According to Bloomberg News' Thomas Biesheuvel, De Beers at its November sight took the nearly unprecendented step of lowering the price of rough diamonds by 5%, according to sources that spoke anonymously as the matter is private. Our sources in Antwerp were able to confirm a softening of prices in most categories but did not place a percentage figure on it.
De Beers' rough diamond production in the third quarter of 2019 declined by 14 percent to 7.4 million carats, with significant reductions in South Africa and Canada which the miner says was planned. "In addition," they note, "we continue to produce to weaker market demand due to macro-economic uncertainty as well as continued midstream weakness." For the year to date, De Beers ouput is lagging 12% behind the first nine months of 2018, falling to 23 million carats from 26 million carats. Q3 output fell 3% from Q2 output.
De Beers Group Auctions today announced the launch of its new auction portal, the company stated in a press release. The new platform "provides customers with an improved bidding experience through a range of enhancements to functionality and to the user experience. The portal harnesses cutting-edge technology and incorporates a range of valuable insights garnered from customer feedback," the Group writes. They describe it as a "better, smarter and faster way for customers to purchase their diamonds." See the announcement in annex below.
Beginning this month, De Beers' lab-grown diamond brand Lightbox Jewelry will be available at two select Bloomingdale’s department stores (one in N.Y., one in San Francisco) and 30 Reeds Jewelers stores in a trial run to see whether their product and value proposal perform in traditional bricks-and-mortar retail environments, reports Forbes magazine. Until now, the only way to purchase Lightbox fashion jewelry was through its website or through an occasional pop-up promotion.
De Beers Group Auctions has appointed Alastair Bickerstaff (pictured) as the Head of Product Development and Sales. The new role, which was created following the departure of the Head of Sales and CRM, combines those two instrumental elements of the business, and he is tasked with developing more synergy between the product development and sales and to better address their customers’product needs.
De Beers' rough diamond sales during Cycle 8 in Sept.-Oct. provisionally totaled $295 million, a 39% drop from the $482 million sold in the same period last year. The decline comes as no surprise as it had already been reported that the miner once again offered sightholders several options to increase the flexibility of buyers struggling with an industry-wide slump caused mainly by an oversupply polished stones in the diamond 'pipeline'.
According to the latest reporting by Thomas Biesheuvel at Bloomberg, at Sight 8 (23 Sept. - 27 Sept.) De Beers has once again offered several options to increase the flexibility of buyers struggling with an industry-wide slump caused mainly by an oversupply polished stones in the diamond 'pipeline'.
Forevermark, the diamond brand from the De Beers Group, has launched its latest consumer campaign, #TrustForevermark, in India, aiming to help prospective buyers allay their doubts, fears and questions that arise when buying diamonds, according to a Forevermark press release. Forevermark is rolling out a multi-media campaign including events, PR, digital, print, television, radio, outdoor and social media content. The #TrustForevermark campaign the brand's largest yet in India and will be rolled out nationally over the next three months targeting nine Tier I and 41 Tier II cities.
It is no secret that since De Beers stopped shouldering the promotional burden for the diamond industry more than a decade ago, investment in category marketing has steadily declined. The Diamond Producers Association (DPA) was created a couple of years ago, but by their own admission their efforts alone are not enough, and more funds are needed.
Namdeb Holdings Ltd, a joint venture between the Namibian Government and De Beers Group, said on Thursday that it has sold Elizabeth Bay Mine and its associated marine assets as a going concern to Lewcor, a 100% Namibian-owned consortium. Namdeb has explored a variety of options to extend the life of its Elizabeth Bay Mine beyond 2019, according to a De Beers press release, but ceased operations in September 2018, as Namdeb could no longer economically run the operation.
De Beers rough diamond sales continued to be very slow in August, as the company announced provisional revenues at the seventh sight of 2019 totalling $280 million. This is significantly lower (-44%) than the $503 million sold at Sight 7 2018, and represents a modest uptick from the $250 million sold at Sight 6, which was the lowest amount earned from a sale since December 2015. As with the previous sight, the miner gave its clients the opportunity to leave up to 50% of available goods on the table to lower the pressure on buyers without lowering their prices.