South African equity group Pallinghurst Resources Ltd. on June 26 announced it has received 96% of shareholder support in its quest to move ahead with a bid to fully acquire Gemfields, in which it is already the largest investor; more than 75% of Gemfields shareholders have given their acceptance for the offer. Last week, Pallinghurst lowered the minimum number of acceptances from shareholders of Gemfields Plc on its takeover offer to 60 percent, from 75 percent, making its offer unconditional. This move came after China's Fosun International raised its offer for the gemstone company.
As Petra Diamonds approaches the close of financial year 2017 (ending 30 June 2017), it has released a market update revising its production and revenue guidance down by 8-9%, despite the fact that the miner is on track to achieve record revenue and production figures in FY 2017. "However, due to the slower than anticipated build-up of its expansion programmes across its operations, production is now estimated to be ca. 8-9% lower than guidance of ca. 4.4 million carats. As a result, revenue is expected to be ca.
Junior miner Firestone Diamonds now expects to recover approximately 360,000 carats in the financial year ending 30 June 2017, against April's guidance of 300,000 carats, or roughly 20% more than anticipated. Firestone announced on 26 April 2017 that commissioning activities at the Liqhobong Diamond Mine in Lesotho (owned 75% by Firestone and 25% by the Government of the Kingdom of Lesotho) were largely complete and that final ramp up was progressing on track, having achieved the plant's nameplate throughput capacity on multiple occasions since the commencement of operations.
China's Fosun International has increased its offer for UK gemstone miner and Fabergé owner Gemfields to $323 million (£256 million), and Gemfields is encouraging its minority shareholders to accept the takeover bid despite considering it unreasonable, in order to avoid an even more “derisory” buyout bid from its largest shareholder, Pallinghurst Resources. Last month, South African private equity group Pallinghurst made an unsolicited offer of 37.1p per share for the 62 per cent of Gemfields that it does not already own, offering investors no premium on the gemstone miner’s share price. In
London-listed gemstones miner and Fabergé owner Gemfields said it has received an offer for the company from Chinese conglomerate Fosun International Ltd. Fosun made an initial proposal regarding a possible cash offer for the British precious stones miner, thereby emerging as a rival to Pallinghurst, whose recent takeover bid was considered to "significantly undervalue" the company. Gemfields said it was, “actively engaged in discussions with Fosun Gold regarding a possible competing offer for the entire issued and to be issued share capital of the company.”
In late March Canadian mining company Dominion Diamond Corp., the world's third largest diamond producer by market value, received an unsolicited $1.1 billion bid from a privately held conglomerate, Washington Corporations (WashCorp), based in Montana. Since soundly rejecting Washington’s offer, and the surge in share prices, Dominion is laying low.
DiamondCorp, the UK-based South African junior diamond miner that underwent an autumn of misfortune including fires and floods at its Lace Mine, has filed to appoint administrators of the company after a business rescue plan failed to result in a solution to their liquidity issues. The decision of the listed holding company to go into administration comes despite being months away from steady-state production, as local bondholders and the Association of Mineworkers and Construction Union (ACMU) frustrated it efforts to refinance, writes Business Day.
Canadian junior miner Kennady Diamonds, whose Kennady North diamond project is located in Canada’s Northwest Territories in proximity to the Gahcho Kué Diamond Mine, announced the terms of a non-brokered private placement whereby the Company plans to raise approximately C$10,000,000 (US$7.3 million) through the issuance of a combination of common shares and flow-through common shares. The common shares to be issued under the offering have been priced at C$3.25 per share and the flow-through common shares have been priced at C$4.38 per share.
Sergey Ivanov, the President of ALROSA, participated in the extraordinary business meeting with the company’s long-term clients dedicated to the new contract period, the company writes in a press release. Participants of the meeting from more than 70 Russian and foreign companies had a chance to discuss with ALROSA’s management diamond market trends, the existing market environment, plans for the near future, and the company’s sales structure. A new 3-year contract period 2018-2020 is to start next year.
R2Net, which owns JamesAllen.com, the fastest growing online diamond retailer, obtained a $140M growth equity investment from Francisco Partners to further accelerate the company’s rapid expansion, the company announced in a press release. “Anyone who has ever bought a diamond or an engagement ring appreciates how intimidating the process can be for the consumer,” said Matt Spetzler, Partner at Francisco Partners.
Russia's ALROSA has announced that it has gained direct access to trading at Moscow Exchange’s FX Market, and that the first trades were executed on April 4, 2017. As of January 16, 2017, Russia starting permitting select non-financial institutions to participate in the FX market directly on equal terms with banks and brokerage firms. So ALROSA, a non-financial institution, can now directly access the foreign exchange market and trade forex without the use of an outside broker.*
Russia’s Republic of Sakha (Yakutia) has no intention to sell its stake in uncut diamond mining giant ALROSA, the republic’s head Yegor Borisov told PRIME. “As far as ALROSA is concerned, it remains under the government control, because there is an agreement, under which a controlling stake is held by the Russian government and the government of Yakutia. Our 25% plus one share stake is protected by law, that’s why we do not plan to privatize it. We do not plan to privatize our part. Districts are also tied to this law, 8%, that’s why it is very difficult,” he said.
Canadian miner Dominion Diamond Corporation issued a statement yesterday announcing the formation of, "a Special Committee to explore, review, and evaluate a range of potential strategic alternatives focused on maximizing shareholder value," and selling the company is one of those alternatives. The announcement follows events last week when Dominion became the target of an unsolicited $1.1 billion approach by U.S.
Dominion Diamond Corporation has sent an notice to its investors reconfirming that, "While its Board of Directors remains confident in the Company's long-term strategic plan and the opportunity it provides to enhance value for all shareholders, as it always has, the Board remains open to holding discussions with Washington Corporations ("WashCorps") on customary terms and in a manner that protects the interests of the Company and its stakeholders."
Canadian mining company Dominion Diamond Corp. received a $1.1 billion bid from a privately held conglomerate in Montana, but the two sides are at a negotiating impasse, setting the stage for a public takeover fight, writes The Wall Street Journal.
Diamond industry analyst Paul Zimnisky, author of the Zimnisky Global Rough Diamond Price Index, provides his thoughts on the recent struggles of diamond mining stocks. Given what is now being widely considered as a recovery and stabilization of the diamond industry last year, an optimistic post-election U.S.
The Lulo alluvial diamond venture in Angola has declared US$8 million in a combined distribution and capital repayment, and Lucapa Diamond - as operator and funder of both the Lulo alluvial mining and kimberlite exploration programs – will be entitled to receive a gross amount of US$5.6 million (A$7.3 million), the company writes in an ASX statement.
Russian diamond mining giant ALROSA today (Tuesday) announced that it prepaid a $600 million bank loans received from VTB Bank in 2012 and extended in 2014 until October 2018. ALROSA paid back the bank loan with its own cash funds, thus reducing its debt on loans and borrowings to $1.7 billion, while its average interest rate decreased from 6.6% to 6.3%. ALROSA has made it a priority in recent years to cut down its outstanding loans.
On January 17, 2017, North Arrow Minerals - a Canadian based exploration company focused on the identification and evaluation of diamond exploration opportunities in Canada - announced it had entered a property purchase agreement with Stornoway Diamond Corporation under which North Arrow will acquire Stornoway’s remaining interests in the Qilalugaq (Nunavut) and Pikoo (Saskatchewan) Diamond Projects.
The Angolan state diamond company, Endiama, said it is currently negotiating with its partner ALROSA for the financing of the Luaxe kimberlite project and will not seek additional investors, reports Macauhub. The Luaxe Kimberlite was discovered in 2012 when Endiama and ALROSA carried out the correlation study to identify Angola's diamond potential. The geological research points to reserves evaluated at 350 million carats and a mining lifespan of 30 years.
The Gem & Jewellery Export Promotion Council (GJEPC) organized an alternative financing seminar this week - Diamond Financing 2017: New Opportunities New Realities - at the WFDB Presidents’ meeting 2017, which was held in Mumbai. Many important members of the industry were in attendance, including Sudhir Mungantiwar, Maharashtra’s Minister of Finance. At the inaugural session, many expressed their concern about the lack of bank financing, such as Anoop Mehta, President of the Bharat Diamond Bourse.
Russia’s largest cut diamonds producer Kristall was included into the 2017-2019 privatization plan, a source familiar with privatization plans told Russia's TASS News Agency on Thursday. Kristall is Russia’s largest producer of polished diamonds and one of the largest diamond cutting companies across the globe.
Kimberley Diamonds Ltd (KDL), owner of the Lerala Diamond Mine located in north-eastern Botswana - which comprises a cluster of five diamond-bearing kimberlite pipes, designated K2 to K6, and a processing plant - is in the process of raising US$3.4 million (A$4.4) through "a non-renounceable pro-rata rights issue offer of new KDL ordinary shares (New Shares) at an issue price of $0.02 per New Share" to fund operations and repay loans. On January 23 2017, the Company announced it undertook a private placement of shares to raise further funds.
Southern African diamond mining, development and exploration company DiamondCorp announced last week it would raise £1million ($1.23M) through a placing at 4p ($0.05). The South African-focused diamond miner initiated the funding round as a first step in pulling its Lace mine out of Business Rescue, and now reports that the placing is progressing well. They have extended the closing date for the round of funding that will bring its diamond mine out of the South African equivalent of administration.
Diamond industry analyst Paul Zimnisky, in his most recent article "A New Diamond Industry", analyzes three significant changes - and the catalysts for those changes - that have been reshaping the diamond industry in recent years: 1) a new operating discipline, 2) a new generation of consumers, and 3) new technology.
Dunnedin Ventures - an exploration company based out of Vancouver, BC, whose main focus is the advanced stage Kahuna Project in Nunavut, Canada - announced it has received gross proceeds of $1,119,031 (US$835,000) from a combination of warrant exercise and flow through financing.
Diamond industry analyst Avi Krawitz presents his thoughtful analysis of the year that was in the diamond industry 2016: "The Year Trust Returned to the Diamond Trade".
The Belgian Parliament has officially adopted the 'Diamond Regime', commonly known as the 'Carat Tax', as the new fiscal system for the Antwerp diamond industry. The new system stipulates that companies will no longer be taxed on the basis of their profit but on a fixed percentage of their turnover - thereby eliminating complicated discussions with tax authorities about the value of inventory, which is difficult to assess.
The 2017 Presidents Meeting, the biennial gathering of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA), will take place in Mumbai from February 5 to 8, 2017, according to a press release from the WFDB secretariat in Antwerp. The Presidents Meeting starts off the WFDB's year of celebrations for its 70th anniversary and will also feature a major Diamond Financing Seminar and Roundtable.
Last Friday, Antwerp World Diamond Centre and the Government of Flanders hosted a seminar on innovation in diamond financing at the Royal Academy of Arts in London. A standing-room only crowd packed the stately Reynolds Room in Burlington House, surrounded by a series of 20th-century British impressionist paintings appropriately titled "Reinventing Landscape", and reinventing the diamond financing landscape is precisely what AWDC has in mind: "Innovation is driving the financial industry forward at an unprecedented pace.
India’s Prime Minister Modi today announced that the existing 500 and 1,000 rupee notes, the highest denomination notes in the country, will be taken out of circulation in 24 hours, to be replaced by new notes of the same denomination. The current notes will no longer be valid as of tomorrow, November 9. The bold measure is intended to combat counterfeiting, (tax) fraud and corruption by making the so-called “black money” visible. The abolished notes can be exchanged at banks until December 30.
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.
DiamondCorp has announced: "following accelerated financing discussions, the company has entered into a Shariah-compliant [no interest] secured convertible financing facility with Rasmala plc, a leading independent investment manager and shareholder in the company." DiamondCorp and Rasmala have agreed to the drawdown of two tranches for a total principal amount of £700,000 ($856,000). The first, in the amount of £400,000 ($489,000), is to be drawn down immediately.
Southern African diamond mining, development and exploration company DiamondCorp said a revised production ramp up announced in August has been further revised in light of tonnage constraints encountered during September, which are now likely to continue until at least the end of the current year.
In a news release, VULT - a digital diamond exchange platform whose, "revolutionary technology turns diamonds into a modern asset class: liquid, portable and fully fungible" - announced: "Secured Worldwide, the creators of VULT, a unique diamond investment product, has won the backing of the Underwriters at Lloyd’s of London for VULT’s warranty of the authenticity of every diamond in VULT units sold to consumers by Secure Worldwide.
Grib Diamonds is a 100% owned subsidiary of LUKOIL and a relatively new player in the rough diamond business, having started its operations in Antwerp in May 2014. Grib Diamonds markets the production of the Grib Diamond Mine, which is owned and operated by oil and gas company LUKOIL. With estimated reserves of 91.5 million carats, it is the 8th largest diamond mine in the world, the 4th largest in Russia and the only major one in Russia that is not operated by ALROSA.
Diamond companies, especially the small and medium-sized firms who make up the bulk of our membership, cannot easily access financing. Diamond manufacturing and trading companies need to finance their operations, however with banks facing higher capital requirements, risk aversion and increased regulatory burden, the financing they make available to diamantaires has fallen significantly in recent years and that has meant reduced operational flexibility and increased vulnerability to market movements for diamond companies.
By Chaim Even-Zohar. Reprinted from Diamond Intelligence Briefs by special arrangement. Click here to read the first article.
By Chaim Even-Zohar. Reprinted from Diamond Intelligence Briefs by special arrangement. Read the second part of this article here.
The board of directors of South African diamond mining firm Trans Hex Group has advised its shareholders to reject a takeover bid from retail tycoon Christo Wiese, the country's richest man. The company said that a panel of independent members found the offer underpriced the miner.