De Beers reported a 4% rise in total revenue for FY 2018, reaching $6.1 billion, but its earnings slid by 13% to $1.25 billion driven by expenditures such as the $87 million acquisition of Peregrine Diamonds and the launch of Lightbox Jewelry. Rough diamond sales rose by 4% to $5.4 billion (2017: $5.2 billion), driven by improved overall consumer demand for diamond jewelry and a 1% increase in the average rough diamond price index.
South Africa-focused miner Petra Diamonds has seen its shares tumble 27% since Monday's announcement of its H1 2019 results, despite an 8% increase in sales and a 10% rise in production. The culprit? Near-historical low prices earned from its rough diamonds from its flagship Cullinan mine. Prices achieved from the miner's Cullinan goods slumped 31% compared to last year, earning just $96 per carat, and compared to a nine-year average of $140 per carat from 2009 to 2018, the miner said.
The De Beers Group has announced its production results for 2018 and Q4 2018, reporting that annual production increased by nearly 7% to 35.3 million carats, while a 4% decline in carats sold was offset by a higher average price per carat, leading revenues to rise 2% to $5.4 billion. They said the rise is production was due to a planned increase at the Orapa mine, although the group's output was in the lower half of the production guidance range of 35 to 36 million carats.
Canadian miner Mountain Province's production and sales of rough diamonds from the Gahcho Kué mine underwhelmed in the third quarter of 2018, as production was on the downside of flat during the quarter, while sales increased against a low comparison point in 2017 and the cost of production rose. Sales increased by 15% to US$57 million (C$75 million) at an average price of US$73 per carat, but net income dropped by 37% to US$13 million (C$17.5m) from US$21million (C$16m).
Russian diamond mining giant ALROSA reported a steep decline in rough diamond sales during the month of October, falling 28% year-over-year and 29% from September, but has still recorded 6% growth during the first ten months of the year. In October, ALROSA Group sold $243 million worth of rough diamonds compared with $326 million in October 2017, and $331 million last month. “In October, demand for small-size inexpensive rough diamonds continued to remain weak," says ALROSA Deputy CEO Yury Okoemov.
Jewelry maker Pandora, known for its charm bracelets, reported Tuesday that Q3 sales in the U.S. fell 12% year-over-year to $153.2 million (DKK 1 billion), while worldwide revenue decreased 3% in local currency to $765.8 million (DKK 5 billion). The "unsatisfactory" results prompted the company to reduce its sales and profit margin guidance for this year following revenue declines in consecutive quarters, and is now saying it expected sales in local currencies to increase by between 4 and 7 percent this year, compared with the 7-10 percent it previously projected.
Firestone Diamonds posted solid production amid middling sales results in Q1 2019 (ended 30 September 2018), but its majority-owned Liqhobong Diamond Mine in Lesotho got off a strong start to the second quarter after selling its third most valuable stone to date. The start of Q2 was highlighted by the second sale of the 2019 financial year, where the diamond miner sold a total of 102,835 carats for US$8.2 million on October 26, including a 68 carat white diamond, the third most valuable stone sold to date for just under US$10 million, and a 20 carat yellow diamond.
Petra Diamonds, with mining operations in South Africa and Tanzania, has released a promising and much-needed set of results from Q1 2019 (July 1 to September 30), reporting a 21% increase in diamond production and a 22% rise in revenue in the last three months.
Firestone Diamonds has just completed its first full year of production at the Liqhobong Diamond Mine (75% Firestone, 25% Government of Lesotho), ending an "eventful" year with mixed results. The company describes their first full year of production as "characterised by exceptional operational performance", as Firestone achieved their carat recovery guidance and exceeded their tonnage treated while operating at significantly lower cost than expected, and maintained an unblemished safety record.
Despite its annual revenue rising 25% and its profit from mining activities up 33% to US$205.1 million, the miner recorded significant losses ($203.1 million) and Petra Diamonds' CEO Johan Dippenaar will step down after 12 years at the helm following a slump in the company’s share price this year. The miner was forced to raise $170m in capital from shareholders last May to shore up its heavy debt, which has run up over the $600 million mark and accelerated the company’s share price fall this calendar year, which is down by 43%.
Tiffany & Co outstripped quarterly estimates for profit and revenue and raised its full-year earnings forecast as the retailer sold more jewelry in China and the Americas. Second-quarter global net sales rose 12% to $1.1 billion, with comp sales rising 8%, and first half sales net sales increased 13% to $2.1 billion, comp sales rising 9%, reflecting geographically broad-based growth and increases in all product categories.
Russian diamond mining giant ALROSA said its first half net profit rose by 19 percent year on year to $865 million (RUB 58.3 billion) as higher average prices for gem-quality stones helped offset a drop in the volume of sales. Revenue increased by 8% to $2.5 billion (RUB 168 bn) on the back of higher average prices and a better sales mix, despite the 8% drop in sales by volume, with sales of gem-quality diamonds shrinking by 14%. ALROSA's EBITDA grew by 22% to $1.3 billion (RUB 89.1 bn), supported by higher top line and lower production costs.
Canadian miner Stornoway Diamonds reported a net loss of US$27.5 million (C$35.9 million) during the second quarter despite higher revenues, as the transition to underground mining at the Renard mine impacted the company's carat recoveries and sales during the first half of the year. The move underground has taken longer than anticipated, as equipment availability and management problems have slowed their progress. The recorded loss compares unfavorably to the $3.1 million in profit the company achieved in the second quarter last year.
Despite a slight uptick in revenues (to $3.2 billion from $3.1 billion), higher production costs weighed down De Beers' first half underlying earnings (EBITDA/earnings before interest, taxes, depreciation and amortization) by 9% percent, falling to $712 million from $786 million. While the company's top representatives emphasized its strong first half both operationally and financially, with continued growth in consumer demand, De Beers CFO Nimesh Patel attributed the decline in EBITA "principally" to "the stronger [South African] rand.
Petra Diamonds posted a 21% rise in revenue to $576.4 million for the twelve months to June 30 from $477 million a year earlier, citing higher diamond prices (+2% on like-for-like basis) and production (+15%); but the miner worried investors by saying it expects to produce 4.6 million to 4.8 million carats in 2019, well below the 5.0-5.3 million carats it forecast in July last year.
Calling financial year 2018 a "year of recovery", leading jewelry retail group Chow Tai Fook, a bellweather for China's jewelry landscape, reaped the benefits of the retail market in Greater China regaining its upward momentum, leading to a vibrant performance for the group. Chow Tai Fook’s sales and profit rose during the fiscal year in the rising Chinese market, with the retail sector also noting increased tourism to Hong Kong as having a positive impact on sales.
Signet Jewelers recorded a $77.2 million (5.5%) increase in overall sales during the 13 weeks ended May 5, 2018 (Q1 fiscal 2019), yet profits tumbled as the retail group reported a net loss of $496.6 million in the quarter, compared with a profit of $78.5 million in the year-earlier period due to a non-cash impairment related to the credit-outsourcing transition and restructuring charges.
Tiffany & Co. (NYSE:TIF) yesterday reported its financial results for the three months (Q1) ended April 30, 2018, which saw worldwide net sales increase 15% to $1.0 billion, led by gains in North America and Asia. As a result of broad-based sales growth, comparable sales increased 10%. Profits soared 53 percent, to $142 million, as shares jumped as much as 17 percent to $119.60 in New York trading, an all-time intraday high and the biggest one-day leap in almost a decade.
Canadaian diamond miner Stornoway suffered higher losses during the first quarter of 2018 as it makes the transition from open pit to underground mining, which has had a negative impact on carat production as they have moved to the processing of lower grade ore.
Russian diamond mining giant ALROSA saw its profit soar to $533 million (RUB 33.2B) in Q1 2018, eclipsing their profit from Q1 2017 by 40% and doubling that from the final quarter of 2017. Noting improved market conditions, the company's rough diamond sales volume grew by 43% to 13.4 million carats despite a 26% decline in production compared to Q4 2017 (-17% compared to Q1 2017) as 48% of their sales volume, about 6 million carats, came from existing stocks.
India's cut and polished diamond exports increased by 4.2% to $23.7 billion for the financial year 2017-18 (April - March), while the value of rough diamond imports to the manufacturing hub rose by 10.6% to $18.9 billion, according to figures from the Gem and Jewellery Export Promotion Council (GJEPC). The average price per carat in the category of polished diamond exports saw an 18% increase, from approximately $614 per carat to $725 per carat.
In an article published by Interfax Alrosa’s Vice President Yuri Okoyemov stated seasonal factors had affected demand for rough diamonds in March, which were slightly down compared to January-February. "But the results of the trading session in March are good; Q1 on the whole can be given a positive assessment," he said. "Generally the forecast for the year is good at the moment; we are expecting stable demand and prices, with seasonal variations."
Canadian miner Mountain Province Diamonds said that 2018 has seen a strong start in rough diamond markets. "The first two sales of the year substantially exceeded expectations, and prices have firmed across all product categories since the second half of 2017," said Interim President and CEO David Whittle. The company reported a net income of CAD$17.2 million for the full year which ended December 31, 2017.
Quebec-based Stornoway Diamonds full-year results reflect “a lower diamond price environment than was originally forecast by the Corporation". The company reported a net loss of CAD $114.6 million (US$ 89.1 M) from net income of CAD $19.6 million (US$ 15.2 M) in 2016 in its financial year ended December 31, 2017. The results reflect "a lower diamond price environment than was originally forecast by the Corporation". Before the impairment net income was $11.1 million for the fourth quarter and $15.0 million for the year.
Australia's Lucapa Diamond Co., with assets in Angola, Lesotho, Australia and Botswana, has announced in its Annual Report for the year ended 31 December 2017 that diamond sales fell 38% to $31.6 million last year compared with $51 million a year earlier, though the 2016 figures are skewed by the $16 million sale of Angola's largest ever rough diamond, the 404-carat 4th February Stone.
Tiffany & Co. reported that its global net sales for FY 2017 (ended January 31, 2018) increased 4% to $4.2 billion, reflecting sales growth in most regions - particularly in the U.S. and China. However, its comparable store sales remained flat for the year despite 9% sales growth in the fourth quarter (Q4). During Q4, on a constant-exchange-rate basis, worldwide net sales rose 6% and comparable store sales were 1% above the prior year, falling short of estimates of a 2.7% gain.
Russia's ALROSA, the world's largest diamond producer, saw its profits tumble by 41% in FY 2017 owing to a variety of factors, including: a 13% ruble appreciation against the US dollar, a 9% decrease in the average price of gem-quality diamonds sold and fallout from the tragic Mir mine flood. The financial downturn took place against the background of increases in the volume of diamonds sold as well as production.
Signet Jewelers same store sales declined 5.2% in the fourth quarter and declined 5.3% in full year fiscal ended February 3, 2018, the company announces at the conclusion of a self-described "challenging year". At the same time they announced two additions to its Board of Directors, appointing Sharon L. McCollam and Nancy A. Reardon as Independent Directors effective March 13, 2018.
Gem Diamonds returned to profit in 2017 as it recovered seven diamonds over 100 carats, but the miner's prospects are looking even better for the year ahead, as today's announcement of the recovery of a 169 carat stone is the seventh diamond of over 100 carats recovered already in 2018. Gem returned to profitability for the year ending 31 December, recording a profit before tax of $30.3m, up from a loss the previous year of $124.1m; profit after tax was $17.2m (-$144.1m) and attributable profit was $5.5m (-$158.8), after exceptional items.
Sarine Technologies Ltd, one of the leading diamond industry technology developers, announced significant declines in its financial figures in 2017, with total profits falling 68% to US$5.76 million and revenues down by 19% to US$58.6 million.
The De Beers Group today announced its annual results for 2017, showing high volumes of production and sales offset by a lower value mix of goods, leading to a 4% reduction in total revenue to $5.8 billion from $6.1 billion 2016.
Petra Diamonds Ltd said Monday its earnings as well as revenue fell slightly in its first half as core earnings fell 8 percent, despite a rise in production, as the miner was hit by industrial action in the form of a Q1 strike in South Africa, the inability to sell the blocked Williamson parcel (71,654 carats still being held by the Tanzanian government) and the strengthening ZA Rand against the USD, which the company says had a combined impact of approximately US$18 million.
Leading Chinese jewelry retailer Chow Tai Fook reported a 5% year-on-year increase in same store sales (SSS) for the three-month period ended December 31, 2017 (Q3 FY2018) in its key markets of Mainland China and Hong Kong & Macau, reflecting solidification of the recovery in demand and increasing points of sale. Overall retail sales value in Hong Kong and Macau was flat year-on-year for the third quarter, but recorded 12% growth in Mainland China.
Tiffany & Co. saw its worldwide net sales increase 3% to $976 million in the third quarter for the three months ended October 31, 2017, while comparable store sales declined 1%. On a constant-exchange-rate basis, their comps held steady. Their net earnings increased 5% to $100 million from $95 million. The uptick in net sales was driven by a 15% rise in the Asia-Pacific region, to $283 million, as strong growth in mainland China contrasted with declines in most other countries, which the jeweler attributed largely to lower Chinese tourist spending.
Signet Jewelers announced its results for the 13 weeks ended October 28, 2017 (Q3 Fiscal 2018): total sales were $1,156.9 million, down $29.3 million or 2.5%, compared to a decrease also of 2.5% in the 13 weeks ended October 29, 2016. The retailer's same-store sales ("SSS") were down 5.0%, including an estimated 120 basis point negative impact that they attributed to weather-related incidents (read, hurricanes) and systems and process disruptions associated with outsourcing the credit portfolio.
BlueRock Diamonds plc, which owns and operates the Kareevlei Diamond Mine in the Kimberley region of South Africa, achieved record monthly sales in October 2017 of US$226,400 (ZAR 3.25 million), also achieving a record monthly number of carats sold at auction of 609.84. The October parcel was sold at an average of US$371.25 per carat, compared with the average price realised for the first 9 months of 2017 of US$336.65 per carat. The diamonds produced and included in October’s sales tender resulted in a grade of 2.64 cpht.
Two leading Hong Kong-based jewelry retailers, Chow Tai Fook and Luk Fook, delivered strong results in the second quarter of their respective financial years ending September 30 2017, signalling the sustained recovery of the Greater China market after a prolonged slump. Chow Tai Fook reported a 15% increase in retail sales in Mainland China and a 12% rise in Hong Kong and Macau compared to the same period a year ago. Luk Fook, reporting only same-store sales (SSS), reported 17% growth year on year, including a 16% increase in gem-set jewelry.
Petra Diamonds Ltd., the London-based diamond miner with five mining operations in South Africa and Tanzania, has reported that Q1 FY 2018 (for the period from July 1 to Oct. 20 2017, covering production and sales from July 1 to Sept. 30 2017) production was down 4% to 1,053,817 carats (Q1 FY 2017: 1,097,523 carats) mainly due to a planned reduction in tailings production at Finsch and Kimberley Ekapa Mining Joint Venture (“KEM JV”).
Petra Diamonds Ltd., the London-based diamond miner with mining operations in South Africa and Tanzania, reported its FY 2017 revenue up 11% to $477.0 million (FY 2016: $430.9 million), though its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $157.2 million from $164.3 million in the year before due to delayed ramp-up of the expansion programs and higher cash costs. The miner's net profit after was down 69% to $20.7 million (FY 2016: $66.8 million).
Dominion Diamond Corporation reported their financial and operational results for the second quarter fiscal 2018 which ended on July 31, 2017. The results were in line with expectations, consolidated carats produced increased 72% to 2.6 million carats in the second quarter from 1.5 million carats for the same period a year earlier due to higher tonnes processed and a focus on high-grade Misery Main ore at the Ekati mine, with steady performance at the Diavik Diamond Mine.