Stornoway still seeking partner to ease finances

Stornoway Diamond Corp. of Montreal released its Q2 2019 report and repeated its plea for a partner or buyer for the money losing Renard mine 350 km north of Chibougamau.

The company began the hunt for a buyer or investor this spring, but no indications of interest were received by the July 15, 2019, deadline. Instead, the deadline has been extended to the middle of September and Stornoway arranged bridge financing to keep the mine open during this time.

For Q2 2019, Stornoway recorded a net loss of $346.3 million, due primarily to a non-cash impairment charge of $442.7 million. The impairment was driven by the sagging prices for rough diamonds that forced the company to write down the value of property, plant, equipment, right of use assets and deferred transaction costs.

Revenues during the three months ended June 30, 2019, were $189.4 million made up of cash sales revenues of $40.7 million and non cash revenues of $148.7 million. Cash operating costs per carat recovered was $63.8, compared to $147.7 in Q2 2018. Cash and cash equivalents stood at $21.3 million, excluding $5.1 million of restricted deposits related to debt service and reserve account.

Said Stornoway in its Q2 news release: “Management estimates that the working capital as at June 30, 2019, and forecasted cash flows will not be sufficient to meet the corporation’s obligations, commitments and budgeted expenditures through June 30, 2020, in the current diamond market price conditions.”

Source: DCLA

Stornoway still seeking partner to ease finances

Stornoway Diamond Corp. of Montreal released its Q2 2019 report and repeated its plea for a partner or buyer for the money losing Renard mine 350 km north of Chibougamau.

The company began the hunt for a buyer or investor this spring, but no indications of interest were received by the July 15, 2019, deadline. Instead, the deadline has been extended to the middle of September and Stornoway arranged bridge financing to keep the mine open during this time.

For Q2 2019, Stornoway recorded a net loss of $346.3 million, due primarily to a non-cash impairment charge of $442.7 million. The impairment was driven by the sagging prices for rough diamonds that forced the company to write down the value of property, plant, equipment, right of use assets and deferred transaction costs.

Revenues during the three months ended June 30, 2019, were $189.4 million made up of cash sales revenues of $40.7 million and non cash revenues of $148.7 million. Cash operating costs per carat recovered was $63.8, compared to $147.7 in Q2 2018. Cash and cash equivalents stood at $21.3 million, excluding $5.1 million of restricted deposits related to debt service and reserve account.

Said Stornoway in its Q2 news release: “Management estimates that the working capital as at June 30, 2019, and forecasted cash flows will not be sufficient to meet the corporation’s obligations, commitments and budgeted expenditures through June 30, 2020, in the current diamond market price conditions.”

Source: DCLA

Pink Russian Diamond May Rank Among World’s Most Valuable Gems

A 14.83-carat pink gem found and cut by Alrosa PJSC is expected to fetch one of the highest prices ever for a diamond when the Russian company puts it up for sale later this year.

The oval stone, named The Spirit of the Rose, has been certified by the Gemological Institute of America as fancy vivid purple-pink with excellent clarity, excellent polish and very good symmetry, said Alrosa spokeswoman Evgeniya Kozenko. The sale is planned for November, she said.

The Spirit of the Rose diamond.

Colored diamonds, formed by impurities such as boron or nitrogen, are the most expensive and rarest, with pink and red stones fetching the highest prices. The Spirit of the Rose may be one of the most expensive pink stones ever, according to Eden Rachminov, the chairman of the board of the Fancy Color Research Foundation.

He estimates the potential price at between $60 million to $65 million.

Sotheby’s set the record for any gem ever sold at an auction in 2017, with its $71 million sale of the 59.6-carat Pink Star to Hong Kong-based jewelry retailer Chow Tai Fook Jewellery Group The stone was mined by De Beers, and dethroned the Oppenheimer Blue, which fetched $58 million in an earlier sale at Christie’s.

Kozenko declined to comment on how much Alrosa hopes to raise from the sale, but said that The Spirit of the Rose will be the most expensive stone ever polished in Russia. The company is still considering how to conduct the sale, with a decision expected next month, she said.

It’s a good time for a sale, as pink stones are about to get even rarer after Rio Tinto Group confirmed earlier this year that it was shutting its giant Argyle operation in Australia. The mine produces about 90% of the world’s pink gems.

Alrosa found the 27.85-carat rough stone at its alluvial mines in Russia’s Far East in 2017 and named it Nijinsky, after ballet dancer Vaslav Nijinsky. The preparation and cutting process, which took a full year, was done at Alrosa’s cutting factory in Moscow.

The Spirit of the Rose was named for the ballet Le Spectre de la Rose, staged by the Ballets Russes company, which premiered in 1911 and in which Nijinsky was a star.

Source: DCLA

Pink Russian Diamond May Rank Among World’s Most Valuable Gems

A 14.83-carat pink gem found and cut by Alrosa PJSC is expected to fetch one of the highest prices ever for a diamond when the Russian company puts it up for sale later this year.

The oval stone, named The Spirit of the Rose, has been certified by the Gemological Institute of America as fancy vivid purple-pink with excellent clarity, excellent polish and very good symmetry, said Alrosa spokeswoman Evgeniya Kozenko. The sale is planned for November, she said.

The Spirit of the Rose diamond.

Colored diamonds, formed by impurities such as boron or nitrogen, are the most expensive and rarest, with pink and red stones fetching the highest prices. The Spirit of the Rose may be one of the most expensive pink stones ever, according to Eden Rachminov, the chairman of the board of the Fancy Color Research Foundation.

He estimates the potential price at between $60 million to $65 million.

Sotheby’s set the record for any gem ever sold at an auction in 2017, with its $71 million sale of the 59.6-carat Pink Star to Hong Kong-based jewelry retailer Chow Tai Fook Jewellery Group The stone was mined by De Beers, and dethroned the Oppenheimer Blue, which fetched $58 million in an earlier sale at Christie’s.

Kozenko declined to comment on how much Alrosa hopes to raise from the sale, but said that The Spirit of the Rose will be the most expensive stone ever polished in Russia. The company is still considering how to conduct the sale, with a decision expected next month, she said.

It’s a good time for a sale, as pink stones are about to get even rarer after Rio Tinto Group confirmed earlier this year that it was shutting its giant Argyle operation in Australia. The mine produces about 90% of the world’s pink gems.

Alrosa found the 27.85-carat rough stone at its alluvial mines in Russia’s Far East in 2017 and named it Nijinsky, after ballet dancer Vaslav Nijinsky. The preparation and cutting process, which took a full year, was done at Alrosa’s cutting factory in Moscow.

The Spirit of the Rose was named for the ballet Le Spectre de la Rose, staged by the Ballets Russes company, which premiered in 1911 and in which Nijinsky was a star.

Source: DCLA

Pandora to Buy Back $75M of Jewelry

Pandora is set to repurchase DKK 500 million ($74.7 million) of unsold inventory from retailers that stock its products, the company said.

The Danish jeweler believes this will reduce the quantity of goods its clients keep in stock for long periods. The company plans to smelt and recycle the old jewelry to make new collections, a company spokesperson told Rapaport News Tuesday. The venture, which it will implement in select global markets, is part of a wider restructuring plan that will cost Pandora up to DKK 1.5 billion ($224.3 million).

Other features of the plan include supplying retailers with fewer goods in a bid to prevent buildup of excess inventory. Pandora will instead replenish clients’ stock with in-demand items when necessary, rather than providing them with too much product up front.

Pandora has struggled with disappointing sales, leading to the departure of the company’s CEO last August, as well as 1,900 job cuts this year.

Last week, the company announced a new partnership with television and film star Millie Bobby Brown as part of its efforts to connect with a younger audience.

Source: DCLA

Pandora to Buy Back $75M of Jewelry

Pandora is set to repurchase DKK 500 million ($74.7 million) of unsold inventory from retailers that stock its products, the company said.

The Danish jeweler believes this will reduce the quantity of goods its clients keep in stock for long periods. The company plans to smelt and recycle the old jewelry to make new collections, a company spokesperson told Rapaport News Tuesday. The venture, which it will implement in select global markets, is part of a wider restructuring plan that will cost Pandora up to DKK 1.5 billion ($224.3 million).

Other features of the plan include supplying retailers with fewer goods in a bid to prevent buildup of excess inventory. Pandora will instead replenish clients’ stock with in-demand items when necessary, rather than providing them with too much product up front.

Pandora has struggled with disappointing sales, leading to the departure of the company’s CEO last August, as well as 1,900 job cuts this year.

Last week, the company announced a new partnership with television and film star Millie Bobby Brown as part of its efforts to connect with a younger audience.

Source: DCLA

LUCAPA RAKES IN $1,234 PER CARAT IN LATEST LULO DIAMONDS SALE

In 2019 to date, Lucapa has sold a total of $26.5 million worth of Lulo diamonds

Lucapa, which owns and operates the Lulo alluvial mine in Angola and the Mothae kimberlite mine in Lesotho, sold a parcel of 3,558 carats of Lulo diamonds for $4.4 million in its latest sale – a whooping $1,234 per carat, according to IDEX Online. In 2019 to date, Lucapa has sold a total of $26.5 million worth of Lulo diamonds ($2,764 per carat).

Lucapa also reported selling a parcel of 4,376 carats of Mothae diamonds for $1.8 million. These figures bring sales of diamonds from Lulo mine in Angola and the Mothae kimberlite mine in Lesotho to $35.5 million in 2019 to date.

Earlier this week, Lucapa announced the recovery of a top-color, exceptional 64-carat diamond from its Mothae mine in Lesotho. According to Lucapa MD Stephen Wetherall, the Type IIa D-colour stone “is considered to be the best individual diamond recovered to date from the Mothae mine”.

Source: DCLA