Russian miner AGD Diamonds' most recent rough diamond auction on the electronic sales platform of its trading subsidiary, Grib Diamonds NV, fetched over $25 million. The company noted an increase in demand for diamond goods and a pickup in the diamond market. AGD commented that the prices they achieved represented a cessation of the decline in average prices and that the first signs of market stabilization are now tangible. The company said it expects a full recovery of demand and rough prices in the second half of 2020.
India's exports of cut and polished diamonds in October declined by 15.4% year-on-year to $1.95 billion as compared to $2.30 billion in October 2018, according to the provisional data released by The Gem & Jewellery Export Promotion Council (GJEPC) of India. The $1.95 billion is the same amount exported in September, which represented an 18% decline from the year prior. The volume of polished diamonds exported declined 8% to 2.8 million carats, as the average price per carat for the month fell 22% to $689 per carat. For the fiscal year to date (April - Oct.
Petra Diamonds has announced the sale of an exceptional, 20.08-carat blue diamond recovered at the Cullinan Mine in South Africa in September 2019, which fetched US$14.9 million, or approximately $741,000 per carat. The buyer is a leading diamond company that wishes to remain anonymous, the miner said in a press release.
Alrosa sold 93 rough diamonds with a total weight of 1,560 carats, and earned $11 million in sales revenue at an auction for special size rough diamonds (weighing over 10.8 carats) held in New York. At approximately $7,050 per carat, the miner says it is the best result achieved in the last few months. There were 95 participants from the US, Belgium, India, Israel, UAE, Russia and Hong Kong.
The first ever direct tender in Antwerp of rough diamonds from the Democratic Republic of the Congo (DRC) officially opened today at the Antwerp World Diamond Centre (AWDC), with viewings starting tomorrow, November 14.
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.
Teaming up with Sarine Diamond Technologies, Alrosa has launched a pilot program to provide digital mapping of its rough diamonds on tender so buyers can better assess the polished output and lower their purchasing risk. In a press release, the Russian miner said it provided the Digital Tenders information for the first time during the October 2019 trading period, offering its clients a full digital scan of each rough diamond for detailed analysis.
The difficulties facing diamond miners delivering products at the lower end of the market hit Mountain Province Diamonds (MPD) particularly hard in Q3 (the three months ending Sept. 30), though the miner has been struggling with low prices for some time now. Q3 revenue from sales declined by 26% as the average price per carat fell by 28%. The company attributes a downturn in carats recovered, as well as the low prices achieved, to mining activity in a lower grade and quality areas that delivered "the expected poorer product mix", as well as "challenging" market conditions.
While Russian diamond mining giant Alrosa's October rough diamond sales remained steady at $253.9 million and even outpaced by $20 million their sales in the same month last year, Q3 (July-Sept.) saw a significant downturn as the market remained difficult and sales volumes declined. Meanwhile, the miner got a bit of sparkle from their polished diamond sales during the month, earning $10.4 million, good for their best polished results of the year by over $2 million. The miner says supply and demand have shown signs of regaining their balance.
Starting November 14, 350,000 carats of rough Congolese diamonds worth an estimated $6 million will go on tender in Antwerp, as the DRC and Antwerp take a first major step toward implementing a cooperation agreement signed in September to facilitate access for DRC miners to Antwerp’s transparent diamond market, and in particular its tender houses. The complete parcel will contain approximately 15% gem-quality goods and 85% industrial-grade diamonds, with closing bids on November 20.
The Angolan National Diamond Trading Company (Sodiam) has reported an increase in revenues from the sale of rough diamonds during Q3 2019, driven by a significant increase in the volume of carats sold as the average price per carat fell.
Leading producer of high-value stones Gem Diamonds recorded modest declines in Q3 compared to Q2, reporting fewer carats sold, lower revenue and average prices achieved for its goods from the Letšeng mine in Lesotho. A year-over-year comparision, however, paints a picture of a more substantial decline and reflects the realities miners are facing in this slumping market.
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.
Firestone Diamonds last week reported a decline in revenue during for the quarter ended 30 September 2019 (Q1 of their 2020 FY) due mainly to lower sales prices for diamonds from its Liqhobong mine in Lesotho. The miner has had to deal with a power supply cut to the mine since 1 October, which forced Firesetone to temporarily shut down the mine's treatment plant until power is restored.
Stornoway Diamond Corp. is a Canadian diamond exploration and producing company that developed the Renard mine over the course of two decades from a grassroots exploration project to a world-class diamond mine - the first in Québec. The massive project, built for $774 million - under their budget of $811 million - sparked enthusiasm across the diamond industry, which has seen few new mines open in recent years. Stornoway delivered the first ore to the processing plant in July 2016 and achieved full production in the summer of 2017.
Mid-tier diamond miner Petra Diamonds Ltd said its first-quarter revenue sank sharply as sales and prices fell, despite production increasing slightly compared to the same period the prior year. For Q1 FY 2020, covering production and sales from 1 July 2019 to 30 September 2019, diamond production rose 1% to 1.08 million carats from 1.07 million carats a year prior.
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.
Diamcor Mining Inc., a TSX-listed junior diamond mining company with operations in South Africa, sold 4,033 carats of rough diamonds at its first tender in Antwerp and has delivered another 6,369 carats which it expects to sell at a second tender at Koin International in Antwerp in November. A third tender is planned for December. The more than 10,000 carats of rough diamonds expected to be delivered and tendered in Q3 represents a significant increase compared to 3,882 carats delivered and tendered in Q2.
A 27% decline in the average price per carat led to an equivalent decline in total Q3 proceeds for Canadian miner Mountain Province Diamonds, as the company sold about the same number of carats as in Q3 last year.
Russian diamond mining giant Alrosa increased its Q3 diamond production by 15% year-over-year while the volume and value of carats sold declined, leading to the miner holding 40% more diamonds in stock than at this time last year. However, they write, globally, the second half of Q3 2019 saw an upward trend in rough diamond sales and a turning point in destocking in the midstream, creating a basis for the market recovery in the future.
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.
Lucapa's latest sales of rough diamonds from its Lulo (Angola) and Mothae (Lesotho) mines totalled $US10.4 million ($A15.5m), taking combined sales to date for 2019 to $US45.9m ($A65.7m).
Petra Diamonds will hold a special tender of the 20.08-carat blue diamond the miner recovered from the Cullinan mine in South Africa last month, with analysts speculating it fetch as much as $15 million. The stone is a gem-quality Type llb diamond.
Russian diamond miner Alrosa saw its September sales of rough diamonds make a modest recovery after a slow summer, selling $256.5 million, which represents a 42% increase over the $180.2 million sold in August. The company acknowledged, however, that market demand for rough diamonds is still low, as this past month's sale was 27% lower than in September 2018, when they moved $331.6 million of rough goods. Adding $2.2 million in polished-diamond sales (-69% y-o-y), total sales for September were $258.7 million.
The Antwerp diamond industry’s import and export figures for the month of September were mainly in line with what we could call ‘2019 normal’ – prices down, polished trade slow – but the volume of rough goods traded in Antwerp’s hit its highest levels of the year, with the quantity of rough exports more than doubling those in August, according to figures from the Antwerp World Diamond Centre's Diamond Office.
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'.
The Minerals Marketing Corporation of Zimbabwe (MMCZ) says it will conduct another diamond auction before the end of the year, and is aiming to sell between 400,000 and 500,000 carats. Two weeks ago, the MMCZ conducted its third auction this year, where they auctioned 316,000 carats and attracted 25 companies from around the world.
The Dubai Multi Commodities Centre (DMCC) today (Sept. 25) unveiled the redesigned and upgraded Dubai Diamond Exchange (DDE) auction facility, which it is calling the world’s largest diamond trading floor. Located at the Almas Tower in Dubai, UAE, the refurbished trading floor has 41 viewing stations with specially designed lighting and high-resolution cameras. Designed principally for rough and polished diamonds, the DMCC says that changes have been made to the DDE windows to enable trade of colored gemstones.
The Minerals Marketing Corporation of Zimbabwe (MMCZ) says the country’s third diamond auction for this year, which closed last week, attracted 25 companies from around the world. The tender of 316,000 carats opened on September 9. MMCZ general manager Tongai Muzenda said “We had invited 28 companies for this third diamond auction and three did not come, and this means we attracted 25 companies." The results of the tender are not yet avaiable, with Muzenda saying they are currently working on the bids made by the prospective buyers.
Lucara Diamond Corp. has recovered a 123-carat gem quality top white Type II diamond from its 100% owned Karowe Diamond Mine located in Botswana. The miner also recently recovered a 375-carat gem quality diamond at Karowe from the processing of historic DMS recovery tailings, generated prior to the incorporation of Lucara's XRT diamond recovery circuits.
H.E. Félix Tshisekedi, President of the Democratic Republic of the Congo (DRC), today paid a visit to the Antwerp diamond industry in the context of a broader mission to improve the relationship between Belgium and the DRC, which has been on the rocks in recent years. As President of the fourth largest diamond-producing country by volume, President Tshisekedi was welcomed by the Antwerp World Diamond Centre (AWDC), representative of the world’s largest diamond trade center.
Despite a comparatively modest decline in revenue in fiscal year 2019 (ended 30 June 2019), Petra Diamonds saw its profits decline by 22% this past year, falling short of industry estimates and sparking a downturn in the company's shares, which hit their lowest level ever. The stock is down about 80% this year as the miner is focusing on reducing its sizeable debt incurred by investments in its flagship Cullinan mine in South Africa. Revenue for the year fell 6% to $463.6 million from $495.3 million, with their average diamond prices achieved falling approximately 5%, which is slightly bett
Russian diamond miner Alrosa sold $180.2 million in rough diamonds during the month of August, representing one if its lowest sales months in years as continuing headwinds - macroeconomic as well as industry-specific - conspired with a traditionally slow summer month to keep the market soft.
The global diamond industry in the first half of 2019 faced a variety of well-doucmented challenges leading to declining commerce across all segments of the trade.
Sodiam, the Angolan state diamond marketing company, today announced the opening of its online registration process to participate in its future competitive sales of rough diamonds, following through on Angolan president Joao Lourenço's intention to fully reform the country's diamond industry. Last year, the country approved new diamond marketing laws, with Lucapa Diamond Co.
Lucapa Diamond Company, which operates high-value mines in Lesotho (Mothae) and Angola (Lulo), saw its first half 2019 net profit after tax jump to US$1.1 million compared with a US$4.3m loss during the same period last year as an increase in production led to higher sales, complemented by a massive jump in the average price per carat sold. Their combined rough sales rose by 85% to US$29.4 million from US$15.9 million a year ago.
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.
Impacted by the persistent slump in the global rough diamond market, which has yet to show any signs of abating, Russian diamond giant Alrosa has reported a sharp decline in Q2 and first half 2019 profits and revenues, adjusting its anticipated sales for the year 2019 downward by 13-16% to 32-33 million carats from their anticipated 38 million carats, the miner announced on Monday.
Replicating the first-half results of 2018 was always going to be a challenge for Gem Diamonds, and against that high bar the miner came up short in H1 2019.
Despite higher production and sales volumes, Lucara Diamond recorded a much lower profit in Q2 2019 than the same period a year earlier, as the extended slump in the diamond trade demonstrates it offers no immunity. L Lucara reported net earnings of $700,000 for the quarter on revenue of $42.5 million, figures which compare unfavorably with a profit of $19.7 million on revenue of $64.5 million in the same quarter in 2018.
The persistent slump in the global rough diamond market showed no signs of abating in July, as Alrosa's rough sales fell to a low not seen in several years. The Russian mining giant sold $164.6 million in rough diamonds in July, falling another 25% below 2019's previous low in June ($219.3), and 51% lower than the $333.8 million earned in July. 2018. For the year to date, Alrosa's sales have declined 34% compared to last year, falling to $1.95 billion from $2.97 billion a year ago.
President Donald Trump said Thursday that the U.S. is putting 10% tariffs on another $300 billion worth of Chinese goods, effective Sept. 1. This means that starting at the beginning of next month, every single good coming into the U.S. from China, except those with exemptions, will be subject to an import tax. Called the 'tranche four' tariffs, the list includes rough and polished diamonds (whether or not worked), loose 'synthetic ...
Over the last five years, we’ve probably seen too much supply of rough going into the market. The big producers are seeing the need to restrict supply. There's a realization that we have to get back in balance. We see the diamond market as being more positive in the future but we’ve got some challenges right now.
Stuart Brown, CEO at Mountain Province on rough supply, the diamond retail market and LGDs.
The Dubai Diamond Exchange (DDE), a subsidiary of the DMCC, completed three rough and polished diamond tenders in the week of July 16 - 23 while the DDE is under renovation. The three separate tenders were hosted by Rapaport, Stargems and Trans Atlantic Gem Sales (TAGS), with reportedly over 200 companies participating.
De Beers today announced that its sales of rough diamonds at its sixth 'sight' of the year in July earned a total of $250 million, a 53% decline from the $533 million sold in July 2018. It is the smallest amount earned from a sale since December 2015, as the miner gave its clients the opportunity to buy fewer goods without repercussion - an uncommon though not unprecedented move. De Beers CEO Bruce Cleaver says this flexibility is part of their effort to work with its clients to help them ride out the storm currently raging in the rough diamond market.
The De Beers Group recorded a 27% decline in first-half earnings to $518 million (2018: $712 million) due to the challenging midstream trading environment and slowing consumer demand growth, parent company Anglo American stated in their interim financial results. The difficult market has led to a decrease in rough diamond prices and has put pressure on the margins of those in the trading business, the company said.
Firestone Diamonds achieved solid fourth quarter production to hit the lower end of its FY 2019 guidance, but the miner's year was made 'tough' by a market that eschewed the smaller, lower value goods that make up the bulk of the output at the Liqhobong Diamond Mine in Lesotho. Firestone produced 208,572 carats during Q4 ended 30 June 2019, representing an 34% increase compared to 155,206 carats in the previous quarter.
For months now, the news emerging from across the diamond industry has been colored various shades of sombre, with each analysis referring to some version of the same list of issues ailing the trade: falling polished prices combined with excessive polished inventories, a financing squeeze on Indian manufacturers and a lack of profitablity, low demand for rough, economic uncertainty generated by an unstable geopolitical climate ... take your pick. The question Paul Zimnisky examines is whether this all adds up to a 'crisis'.
Petra Diamonds reported full-year revenue below analysts’ estimates on Monday and said it expects next year’s production to be slightly lower, as it struggles with a diamond market hit by weak demand and lack of easy credit. The London-based miner with operations in South Africa and Tanzania said that revenue decreased 6% to US$463.6 million (FY 2018: US$495.3 million) for the year ended 30 June 2019, reflecting a weaker diamond market.
Russian diamond-mining giant Alrosa increased its rough-diamond output in Q2 and H1 2019, but the miner's sales have fallen to a low not seen since Alrosa started publishing monthly results in 2016 as rough and polished diamond market saw weak activity and very poor demand. Alrosa pointed to changing retail practices such as consolidation and increasing online sales as reasons for a reduction in polished diamond stocks across the retail sector. As businesses embrace more efficient stock management practices, cutters and polishers reduce the volumes of their rough diamond purchases.
De Beers decreased its rough diamond production in Q2 by 14% to 7.7 million carats and revised its full-year guidance downwards to ~31 million carats in response to a backlog of polished diamond inventories in the midstream and weaker trading conditions. The overall decline was mainly driven by reductions in Botswana (Debswana) and South Africa (DBCM). The miner's H1 production fell by 11% to 15.5 million carats from 17.5 million carats during the same period a year ago.
ABN Amro sent a letter to several of its diamond clients stating that it would be limiting finance for rough purchases "in view of the continued lack of profitability in the purchase of rough goods." The letter, which was obtained by JCK and IDEXonline, was sent last week from an Antwerp branch of the Dutch bank to a number of its clients declaring a moratorium on rough loans, pointing implicitly to the industry's reckless behavior in writing, "We recommend you to show constraint [sic] and only consider purchasing rough when there is sufficient profitability." In other words, the b
India has introduced a specific, 8-digit HS (Harmonized System) code for synthetic rough diamonds in an attempt to maintain the integrity of the diamond pipeline, an issue for which the Indian diamond industry has been subject to criticism in recent years.
A combination of factors has led to widespread uncertainty and a global downturn in the diamond industry during the first half of 2019. Antwerp - the world’s leading diamond trade centre - has not escaped its impact, particularly in the rough diamond trade. Economic uncertainty generated by an unstable geopolitical climate has also fostered a heightened sense of caution among the banks that finance the trade, as well as diamond brokers and consumers of luxury goods.
The unrelenting slump in the global rough diamond market showed no signs of letting up in June, as Alrosa's rough sales fell to a low not seen since the miner started publishing monthly results in 2016. The Russian mining giant sold $219.3 million in rough diamonds in June, falling another 16% lower than 2019's previous low in May ($261.1 million), and 43% lower than the $383.7 million earned in June 2018.
Global rough-diamond production fell to 148.2 million carats in 2018, a decline of less than 2% from the 150.9 million carats recovered in 2017; however, a 4% rise in the average price per carat led to a 2.4% increase in the value of the world's rough diamond production, according to Kimberley Process (KP) data. Global diamond production was worth $14.47 billion in 2018 compared to $14.12 billion in 2017, as the average price per carat rose to $97.5 from $93.6.
Seattle-based online jewelry retailer Blue Nile, which cleared about $500 million in revenue last year, has place an embargo on Zimbabwean diamonds over reports of human rights abuses in the Marange district, several Zimbabwe news outlets are reporting.
De Beers' rough diamond sales at Cycle 5 in June were (provisionally) $390 million, making sight number five of 2019 the lowest-earning sight of the year to date, the smallest since the October 2017 sight ($370 million, Cycle 8) and the lowest for a June sale since the miner started releasing monthly sales data in 2016. June is not typically a slow month for rough diamond sales. Cycle 5 sales from 2016-2018 averaged $555 million, or 30% more than in 2019.
India's rough diamond trade continued its 2019 downturn in May, as less manufacturing is taking place amid a tightening of available financing and weak demand for small goods, according to data gleaned from the Gems & Jewellery Export Promotion Council (GJEPC). Exports of polished diamonds also recorded their fifth consecutive month of decline in 2019, despite a solid increase (11%%) in the average price per carat.