Sarine Technologies Ltd, a global leader in the development, manufacture and sale of precision technology products for planning, processing, evaluating and measuring diamonds and gems, reports that it has delivered a record 24 Galaxy-family inclusion mapping systems in Q4 2016, bringing the total number of 2016 deliveries to 84 systems (previous record year saw 48 deliveries). This figure also tops their former quarterly record of 22 systems sold in Q3 2016. The majority of machines sold were of the Meteor variety for small stones (0.25 to 0.89 carat).
India's Titan Company said in a stock exchange filing that its performance in the October-December quarter was lifted by a 15 percent retail growth in its jewelry brand, Tanishq, despite India’s demonetization of the country’s ₹500 and ₹1,000 notes weakening consumer demand, writes Azman Usmani for Bloomberg Quiint. Titan Company Ltd.
De Beers (provisionally) sold $418 million in rough diamonds at its final sight (Cycle 10) of 2016, the smallest sight of the year as the trade winds down for the holidays. This is a 12% decline from the Cycle 9 Sight, but represents a 68.5% rise from the Cycle 10 Sight of 2015.
Dominion Diamond Corporation reported that its third quarter fiscal 2017 quarter (three months ended Oct. 31, 2016) gross margin amounted to $22.2 million, resulting in an operating loss of $9.1 million versus an operating profit of $9.5 million a year ago. As previously reported, the company's diamond sales for the third quarter were $102.7 million from the sale of 1.2 million carats.
LUCARA Diamond Corporation, a Toronto-listed firm that mines from Botswana’s Kaorwe mine, has published its Operating Outlook for 2017, budgeting for revenue of $200 to $220 million excluding the sale of the Lesedi La Rona diamond - which could theoretically add another $70m(+) to company revenues in 2017. It has also not included other high value diamonds, as their recovery is unpredictable. As a result of its encouraging prospects, Lucara said it would increase its annual dividend to 10 Canadian cents per share for its 2017 financial year.
Tiffany & Co.’s shares rose by more than 6% following the announcement of their third quarter update, reporting the jeweler’s first sales growth in over 2 years. Net sales worldwide advanced by 1% to $949 million, and comparable store sales declined 2%. These figures reflect the mixed results across geographic regions and the various product categories. Frederic Cumenal, Tiffany’s chief executive officer, said “We are encouraged by early signs of improvement in sales, but we clearly need more positive data over time before this can be considered an inflection point.”
Signet Jewelers, the world's largest retailer of diamond jewelry, reports its same store sales for the third quarter of fiscal 2017 (ended October 29) fell 2.0%, while total sales fell $30.2 million to $1.2 billion, a 2.5% decline. Nonetheless, the results outstripped the company’s own guidance of a 3 to 5 percent decline. As Mark Light, Chief Executive Officer of Signet Jewelers said, “We expected challenging market conditions to result in a sales decline.
Following their prior announcement in the "Q3 and 9M 2016 Operational Overview" showing modest declines in production but a significant increase of revenue, ALROSA today published its financial results for the period, noting a 67% increase in profit during the first nine months of 2016 to $2.34 billion.
Dominion Diamond Corporation reports that third fiscal quarter sales 2017 (three monthds ended Oct. 31, 2016) of rough diamonds from the Ekati Diamond Mine and Diavik Diamond Mine fell 29% to $102.7 million from $145.0 million despite the total volume of carats sold increasing by 56% to 1.2 million carats from 0.8 million carats.
ALROSA, the world leader in diamond mining, has announced rough and polished diamond sales results for October 2016. Rough diamond sales in October 2016 amounted to USD 430.8 million. Polished diamond sales for the same period amounted to USD 8.2 million. Total diamond sales in October 2016 amounted to USD 439 million. “Demand remained strong in October even on the threshold of the holiday season during the celebration of Diwali in India-–the largest cutting and polishing center,” says Yury Okoemov, ALROSA Vice President.
De Beers Group of Companies sold provisionally $470 million in rough diamonds during Cycle 9, their lowest sales of 2016 thus far, down nearly 5% from the $494 million in rough sales in Cycle 8. Bruce Cleaver, CEO, De Beers Group, said: “Encouragingly, the ninth sales cycle of 2016 showed continued good demand for De Beers rough diamonds, with sales in line with expected seasonal demand patterns.” Those 'seasonal patterns' have pushed the rough trade down across the board over the last two months.
Canada's Stornoway Diamond Corp.'s third quarter results show the company in the midst of shifting from completing construction of their Renard Mine to ramping up production as their maiden rough diamond sale begins in Antwerp, two months earlier than previously anticipated. The quarter saw the official opening of Renard on October 19, 2016 after ore processing commenced on July 15, 2016. Construction progress, at 99%, was essentially complete at the end of the quarter.
Gem Diamonds, a leading producer of high-value diamonds, reports that it recovered 15% fewer diamonds in Q3 (24,388 carats) at its Letšeng mine in Lesotho than in Q2 (28,682 cts), representing a 17% decline compared to Q3 2015. The company cited "the worst weather conditions experienced since the Letšeng mine opened,” limiting its access to the pits, as the reason for the decline. During the quarter, Gem held three tenders with 37,990 carats sold for a total value of $61.5 million, achieving an average price of $1,619 per carat.
Lucara Diamond Corp. reported a net loss of $3.8 million in Q3 compared to net income of $44.2 million in the prior year. The company explains that this is a result of, "having two sales in the prior year, including an exceptional stone tender, compared to a single sale in the current year. The Company also reported a foreign exchange loss in Q3 compared to a foreign exchange gain on translation of its US dollar cash in the prior year as the pula has appreciated in the current year," reads the press release.
In a surprise announcement, online jeweler Blue Nile said Monday that it has entered into an agreement to be taken private by an investor group comprised of funds managed by Bain Capital Private Equity and Bow Street LLC, writes Anthony DeMarco for Forbes. The all-cash deal is valued at $500 million.
Firestone Diamonds, which owns 75% of the Liqhobong Mine with the Government of the Kingdom of Lesotho owning the other 25%, has reported profit after tax of US$13.6 million (2015: US$10.4 million loss).
Trans Hex, a JSE-listed alluvial diamond mining company with well-established land operations in South Africa and interests in Angola, experienced a complete turnaround of fortunes in the first six months of 2016 ended September 30, as net profits moved to $2.43 million (R32,5 million) as compared to a $2.43 million net loss for the first half of 2015.
Following their announcement earlier this month about achieving record levels of rough diamond production at their Lulo Diamond Project in Angola in Q3 of 2016, Australia's Lucapa Diamond Co. has now announced corresponding record levels of sales during the same period. Sales of 12,438 carats during the three-month period represent a 206% jump in Q3 2016 compared to 2015, while the value of those sales rose 1,343%, from $716,551 in 2015 to over $10.3 million in 2016.
Anglo American has published an update on its production performance for the third quarter of 2016, indicating that diamond production for the third quarter of 2016 increased by four percent to 6.3 million carats compared with the third quarter of 2015, when production was reduced to 6.0 million carats in response to weaker trading conditions.
Petra Diamonds, the London-listed mining group focused on Southern Africa that operates four mines in South Africa and one in Tanzania, has reported that Q1 2017 (1 July to 21 October 2016, covering production and sales from 1 July 2016 to 30 September 2016) production is up 30% to 1,097,523 carats (Q1 FY 2016: 842,796 carats), due to increased contribution from undiluted run-of-mine (ROM) ore, improving ROM grades and additional tailings production from Kimberley Ekapa Mining.
Russia's rough diamond giant ALROSA has published its "Q3 and 9M 2016 Operational Overview", showing modest declines in production but a significant increase of revenue. Rough diamond production for the first 9 months of 2016 fell 5.74% from 29.6m carats in 2015 to 27.9m in 2016, while Q3 production dropped 5% from 11.6m carats to 11.0m carats.
Petra Diamonds has released its annual report for FY 2016, with 16% higher rough diamond production at 3.7 million carats leading to only a 1% gain in total revenue at $430.9 million, and a 1% increase in adjusted net profit at $63.6 million. Chairman Adonis Pouroulis states, "While we achieved 16% higher production during the year, revenue was only up 1% as the higher volumes (albeit of lower value goods from the Kimberley tailings operations) were offset by rough diamond prices on a like-for-like basis, being down circa 6% in comparison to FY 2015 ...
According to Finmarket.ru, in an article translated and published by Rough-Polished, ALROSA President Andrey Zharkov said in an interview with television channel "Russia 24" that the company will drive its sales to 37 million carats (equal to output) in 2016, a 23% over 2015.
LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded a 4% increase in revenue, reaching $29 billion (€26.3 billion), for the first nine months of 2016, the group announced in a press release. Organic revenue grew 5% compared to the same period in 2015. With organic revenue growth of 6%, Q3 saw an acceleration compared to the first half of the year. Asia showed a significant improvement during the quarter. The United States remains well positioned, as does Europe.
Rough diamond sales by ALROSA Group in September 2016 amounted to US$435.1 million. Polished diamond sales over the same period totaled US$18.9 million. “In September, as expected, we saw a good demand in almost all categories of rough diamonds. Sales results were significantly over our September 2015 figures,” says Yury Okoemov, ALROSA Vice President. This brings ALROSA's third quarter rough diamond sales to (approximately) US$970 million, as compared to US$563 million in Q3 a year ago.
Diamcor Mining Inc., a publically traded junior diamond mining company that operates the Krone-Endora mine at Venetia in South Africa, reported $1,166,937.49 in sales during second fiscal quarter 2016. The company held two tenders during the period; combined, the rough diamonds tendered and sold during the current fiscal quarter amounted to 8,274.47 carats, or an average price of USD $141.03 per carat.
Sierra Leone exported 347,070 carats of diamonds in the first half of this year, according to the country's Diamond Dealers Club. Club President Federico Candiano told Rough & Polished that the country generated $188.9 million in revenue during the period. The figure includes $145,011,552 from mining licenses and $43,851,404 was from mining trader licenses. “The second half [of 2016] should mark a positive increase due to the seasonal washing in the rainy season,” said Candiano.
Gemstone miner Gemfields reports a jump in revenue to $193.1 million for the year ended June 30 from $171.4 million a year before. Meanwhile profit after tax almost doubled from a year before to $23.5 million from $12.3 million. The firm had cash holdings of $41.5 million compared with $28.0 million and the cost of its gemstone and Fabergé inventory was $107.2 million from $101.1 million last year.
DiamondCorp, the Southern African diamond mining, development and exploration company, has announced that it has sold a total of 7,121 carats (cts) of diamonds from the Lace diamond mine in the Free State province of South Africa in the current three month period through a combination of direct sales and competitive tender, earning total revenues of $782,455. The company sold 4,863 cts of diamonds recovered from kimberlite mining and 2,258 carats of diamonds from tailings production and fine diamonds less than 1.25 mm.
Petra Diamonds Limited announced that revenue edged up just 1% to $430.9 million in its preliminary results for the year ended June 30. Net profit after tax, however, jumped 12% to $66.8 million. The miner, which operates four former De Beers mines in South Africa and one in Tanzania, also reported that net debt more than doubled from last year to $384.8 million.
Chow Tai Fook, the world’s largest publicly traded jewelry chain, is warning that the jewelry market remains challenging even though it expects a decline in sales to ease off in the second half of this year. It also hopes to benefit from easier comparisons in the second half with the same period of 2015. “This year is still a challenge because the volatile global economy is affecting buying sentiment as a whole,” Kent Wong, the managing director of Chow Tai Fook Jewellery Group, told Rapaport News.
DiamondCorp, a UK-based emerging diamond producer whose primary asset in South Africa is the Lace Diamond Mine located some 200 kilometres south-west of Johannesburg, has reported a reduction in operating losses for the six month period ended 30 June 2016 as compared to the same period in 2015.
Canadian miner Dominion Diamond has reported a loss of $37.9 million for Q2 2017 ended July 31 2016, increasing their first half losses to $73.8 million. Total sales for the quarter fell nearly 24% year on year to $160 million from $209.7 million, while revenues for the first half fell 15% compared to the first half of 2015. The Toronto-based company said it had a loss of 39 cents per share.
De Beers Group has reported that rough diamond sales at its seventh sight in 2016 amounted to $630 million (provisional), rebounding from its slowest cyle of the year.
Tiffany & Co. reported that revenue for the second quarter was $932 million versus the consensus estimate of $934.74 million, as it recorded falling sales on the year in the quarter and first half of this year compared to the year-earlier periods. In the Americas, total sales of $434 million in the second quarter and $837 million in the first half were both 9% below last year, with declines of 9% and 10%, respectively, in comparable store sales.
Signet Jewelers Limited, the world's largest retailer of diamond jewelry, reported lower same-store sales and revenues for the second quarter of fiscal year 2017 ended July 30. Same store sales were down 2.3% on the same quarter last year, while total sales fell 2.6% to $1.4 billion. Total sales at constant exchange rates were down 1.3%. Annual financial guidance was revised downward based on current trends.
Mining giant Anglo American, which owns 85 percent of De Beers, has narrowed its half-year loss as it pushes to keep cutting costs in response to “sharply” lower commodity prices. The global miner reported a loss attributable to shareholders of $813 million in the six months to June 30, compared with a loss of $3.02 billion in the corresponding period a year earlier. The firm has been battered this year by plunging commodity prices.
Dominion Diamond Corporation reports that fiscal 2017 second quarter diamond sales were $160.0 million, down from $209.7 million a year before from its Ekati and Diavik diamond mines. At Ekati, production was 0.9 million carats from 0.6 million tons of ore processed versus 0.9 million carats recovered from 1.0 million tons processed a year before. Sales in the second quarter were lower than the prior year primarily due to a high proportion of lower value goods from the Misery Satellites available for sale in the quarter.
Synthetic diamond manufacturer Scio Diamond, based in the U.S., reported a 7.5% rise in revenue (+ $12,886) for the first quarter of the 2017 fiscal year, ended June 30, increasing to $185,061. However, it also came with a larger (+39%) loss - from $848,585 in Q1 2016 to $1,181,675 in Q1 2017.
Record high prices for gold (the price of gold rose 25% in the first half of 2016, its strongest performance in 35 years) has led to a record surge in H1 investment demand of 1,063.9t, which was 16% higher than the previous H1 high from 2009, as continued growth in Q2 2016 (+15%) brought total H1 gold demand to 2,335t - the second highest first half on record, according to the World Gold Council.