Russian diamond mining giant reported rough-diamond revenue its first quarter results for 2017. Group revenue is up 38% q-o-q but down 17% y-o-y to $1.5 billion (RUB 84.8 bn) for the three months that ended on March 31. Gem-quality rough sales fell by 18% to $1.35 billion (RUB 76.1 bn), with the remaining revenue coming from industrial grade diamonds, gas sales and other products.
The Diamond Producers Association (DPA) announced their intention to spur demand in the third largest diamond market, India, by launching their “Real is Rare” slogan in September. The DPA - an international alliance of the world’s leading diamond mining companies whose mission is to protect and promote the integrity and reputation of diamonds, and the diamond industry - initially launched its “Real is Rare” campaign in the U.S. in 2016.
Mountain Province Diamonds Inc. announced the FY 2016 results, reporting a net income of $3.6 million (CAD 4.8m) compared with a net loss of $32.4 million (CAD 43.2m) in 2015. The change is primarily a result of a strong Canadian to U.S. dollar exchange. The company did report a net loss of $6.2 million (CAD$8.3m) in its fourth quarter.
Russian diamond mining giant ALROSA published its production results as well as a preliminary trading update for the fourth quarter of 2016. Diamond production for 2016 totaled 37.4 million carats, 2% less than the previous year. The 10% y-o-y growth in production for the Q4 is a result of ramping up production at Alrosa’s underground mines, as well as by the fact that the Mir underground mine has reached its project capacity.
De Beers announced they intend to pilot a fixed-price forward contract, which gives Auction Sales customers an opportunity to guarantee access to future supply, knowing ahead of time what they are expected to pay when the contract reaches maturity. The program will first be implemented on 16 February 2017, for the Grainers, otherwise known as Smalls- and Near-Gem categories of rough diamonds.
Diamond traders from all around the world are on their way to Botswana for one of the biggest annual sales as the $14 billion industry attempts to recover from India’s demonetization. India processes as much as 90% of the worlds rough diamonds with the purpose of being cut, polished or traded, but the steady supply of diamonds for its manufacturing industry has come under pressure as a result of the currency crisis.