Alrosa Sales Hit Lowest Level on Record

Alrosa’s July sales slumped to their lowest point in three years, as weakness in the rough market continued to impact demand.

The Russian miner’s total sales slid 50% to $170.5 million for the month, it reported Friday. Rough-diamond sales, which account for the bulk of the company’s revenue, dropped 51% to $164.6 million. Polished sales increased 11% to $5.9 million. Previously, the lowest monthly total was $176.3 million in December 2016, according to Rapaport records. Alrosa has released its results every month since August 2016.

The decline resulted from an oversupply in the midstream, as manufacturers were unable to offload stones due to weak demand. “This factor was exacerbated by [the] low availability of credit facilities…in the midstream [and] trade tensions between [the] US and China,” explained Evgeny Agureev, director of Alrosa’s United Selling Organization.

Sales for the first seven months of the year fell 35% to $1.98 billion, with rough sales down 34% to $1.95 billion. Revenue from polished diamonds plunged 40% to $33.1 million for the January-to-July period.

However, Alrosa predicted an improvement in the situation as inventories even out.

“Recent statistics on the net imports of rough diamonds to India and net export of polished diamonds [out of that country] suggest that the diamond market is gradually coming back to supply-demand balance,” Agureev added.

Source: DCLA

Alrosa Sales Hit Lowest Level on Record

Alrosa’s July sales slumped to their lowest point in three years, as weakness in the rough market continued to impact demand.

The Russian miner’s total sales slid 50% to $170.5 million for the month, it reported Friday. Rough-diamond sales, which account for the bulk of the company’s revenue, dropped 51% to $164.6 million. Polished sales increased 11% to $5.9 million. Previously, the lowest monthly total was $176.3 million in December 2016, according to Rapaport records. Alrosa has released its results every month since August 2016.

The decline resulted from an oversupply in the midstream, as manufacturers were unable to offload stones due to weak demand. “This factor was exacerbated by [the] low availability of credit facilities…in the midstream [and] trade tensions between [the] US and China,” explained Evgeny Agureev, director of Alrosa’s United Selling Organization.

Sales for the first seven months of the year fell 35% to $1.98 billion, with rough sales down 34% to $1.95 billion. Revenue from polished diamonds plunged 40% to $33.1 million for the January-to-July period.

However, Alrosa predicted an improvement in the situation as inventories even out.

“Recent statistics on the net imports of rough diamonds to India and net export of polished diamonds [out of that country] suggest that the diamond market is gradually coming back to supply-demand balance,” Agureev added.

Source: DCLA

Lucapa discovers ‘exceptional’ 64 carat diamond

Lucapa Diamond Company has recovered a 64 carat diamond from the Mothae kimberlite mine in Lesotho, Africa.

Type Ila D colour gem is considered the best individual diamond recovered to date from the Mothae mine, further underlining the mine’s status as a source of large and premium-value stones, according to Lucapa managing director Stephen Wetherall.

“The recovery of this exceptional 64 carat gem also represents a great start to our mining campaign in the higher margin zones in the southern pit at Mothae,” he said.

Lucapa’s commencement of dewatering the southern pit into the main 500,000 cubic metre dam has enabled mining to transition to this higher-margin zone of the kimberlite pipe in the third quarter this year.

Mining is scheduled to continue in the southern pit throughout 2019.

Lucapa’s Lulo and Mothae sites produce large and high-value diamonds, with over 75 per cent of both mines’ revenue generated from the recovery of 4.8-plus carat stones.

The 1.1 million tonnes a year Mothae kimberlite mine commenced commercial diamond mining operations in January and has already recovered seven 50-plus carat diamonds under Lucapa’s management.

The Mothae mine is 70 per cent owned by Lucapa and 30 per cent by the Government of the Kingdom of Lesotho. It is located in the diamond-rich Maluti Mountains.

Source: DCLA

Lucapa discovers ‘exceptional’ 64 carat diamond

Lucapa Diamond Company has recovered a 64 carat diamond from the Mothae kimberlite mine in Lesotho, Africa.

Type Ila D colour gem is considered the best individual diamond recovered to date from the Mothae mine, further underlining the mine’s status as a source of large and premium-value stones, according to Lucapa managing director Stephen Wetherall.

“The recovery of this exceptional 64 carat gem also represents a great start to our mining campaign in the higher margin zones in the southern pit at Mothae,” he said.

Lucapa’s commencement of dewatering the southern pit into the main 500,000 cubic metre dam has enabled mining to transition to this higher-margin zone of the kimberlite pipe in the third quarter this year.

Mining is scheduled to continue in the southern pit throughout 2019.

Lucapa’s Lulo and Mothae sites produce large and high-value diamonds, with over 75 per cent of both mines’ revenue generated from the recovery of 4.8-plus carat stones.

The 1.1 million tonnes a year Mothae kimberlite mine commenced commercial diamond mining operations in January and has already recovered seven 50-plus carat diamonds under Lucapa’s management.

The Mothae mine is 70 per cent owned by Lucapa and 30 per cent by the Government of the Kingdom of Lesotho. It is located in the diamond-rich Maluti Mountains.

Source: DCLA

Tiffany to Launch in India This Year

Tiffany & Co. will open its doors in India in an effort to capitalize on its already strong image and brand awareness in the country, the company said Wednesday.

The luxury jeweler will partner with Reliance Brands Limited, which is part of the Reliance Industries conglomerate owned by Mukesh Ambani, recently ranked by Forbes as the richest man in Asia. Tiffany will open stores in Delhi during the second half of the year, and further locations in Mumbai in the second half of 2020.

“As a global luxury jeweler with stores in many of the world’s most important cities, Tiffany’s emergence in these Indian commerce centers with their growing luxury consumer base presents a unique opportunity,” said Philippe Galtié, Tiffany’s executive vice president of global sales.

Reliance, which helps launch and build international brands in the luxury sector, has already introduced Armani, Hugo Boss, Brooks Brothers and other brands to the Indian market.

“Tiffany needs no introduction in India — it is iconic and timeless,” said Darshan Mehta, president and CEO of Reliance Brands.

Source: DCLA

Tiffany to Launch in India This Year

Tiffany & Co. will open its doors in India in an effort to capitalize on its already strong image and brand awareness in the country, the company said Wednesday.

The luxury jeweler will partner with Reliance Brands Limited, which is part of the Reliance Industries conglomerate owned by Mukesh Ambani, recently ranked by Forbes as the richest man in Asia. Tiffany will open stores in Delhi during the second half of the year, and further locations in Mumbai in the second half of 2020.

“As a global luxury jeweler with stores in many of the world’s most important cities, Tiffany’s emergence in these Indian commerce centers with their growing luxury consumer base presents a unique opportunity,” said Philippe Galtié, Tiffany’s executive vice president of global sales.

Reliance, which helps launch and build international brands in the luxury sector, has already introduced Armani, Hugo Boss, Brooks Brothers and other brands to the Indian market.

“Tiffany needs no introduction in India — it is iconic and timeless,” said Darshan Mehta, president and CEO of Reliance Brands.

Source: DCLA

Trade Fears Weigh on Hong Kong Retail

Retail sales of jewelry and other luxury items fell sharply in Hong Kong in June amid increasingly cautious consumer sentiment and a slowdown in tourism.

Revenue from jewelry, watches, clocks and other valuable gifts dropped 17% year on year to HKD 5.75 billion ($734.4 million), the municipality’s Census and Statistics Department reported last week. Sales in all retail categories slipped 7% to HKD 35.21 billion ($4.5 billion).

Tourists from mainland China are major consumers of luxury goods in Hong Kong. Continued economic uncertainty due to fears about tariffs on trade between the US and China has caused tourism to decline, affecting sales, advisory firm PricewaterhouseCoopers said last month. In addition, demonstrations against an extradition bill have also dented luxury sales. The government expects the decline to continue if the protests in the municipality persist.

“Retail sales registered an enlarged decline in June, as local consumer sentiment turned more cautious and growth in visitor arrivals moderated,” a government spokesperson noted. “The near-term performance of retail sales will likely remain subdued, as the weakened global and local economic outlook and other headwinds continue to weigh on consumption sentiment. The recent mass demonstrations, if continued, would also dent the retail business further.”

Retail sales of jewelry, watches, clocks and other valuable gifts decreased 7% to HKD 40.62 billion ($5.19 billion) in the first half of the year. Sales in all retail categories for the January-to-June period fell 2.6% to HKD 241.27 billion ($30.81 billion).

In June, the number of tourists visiting Hong Kong rose 9% to 5.1 million, the Hong Kong Tourism Board reported, compared to 14% growth for the first half of the year combined.

Source: DCLA