Petra Diamonds’ revenues decline

Petra Diamonds Limited lost some of their lustre, sliding 5.3% to 7.65p after the diamond miner underwhelmed with a trading update.

Revenue in the three months to the end of September – the first quarter of the company’s fiscal year – was down 23% to US$61.6 million from US$80.2 million in the same period of 2018.

The company sold 603,626 carats, compared to 626,541 a year earlier, at prices roughly 4% lower than in the three months to the end of June.

Source: DCLA

Petra Diamonds’ revenues decline

Petra Diamonds Limited lost some of their lustre, sliding 5.3% to 7.65p after the diamond miner underwhelmed with a trading update.

Revenue in the three months to the end of September – the first quarter of the company’s fiscal year – was down 23% to US$61.6 million from US$80.2 million in the same period of 2018.

The company sold 603,626 carats, compared to 626,541 a year earlier, at prices roughly 4% lower than in the three months to the end of June.

Source: DCLA

$14M Blue Diamond to Headline Christie’s Geneva

A fancy deep blue diamond ring with a high estimate of CHF 14 million will go under the hammer at Christie’s Geneva Magnificent Jewels auction next month.

The 7.03 carat stone, mounted by Moussaieff, will lead the November auction, Christie’s said Thursday. Another prominent lot is a 46.93 carat, D color, internally flawless diamond ring, which is expected to fetch CHF 3.8 million to 4.5 million.

Christie’s will also offer a 42.97 carat Burmese sapphire pendant, valued at up to CHF 3 million, and a pair of untreated Colombian emerald earrings, each weighing over 7.5 carats, with a presale estimate of CHF 1 million to 1.5 million.

Other items on offer include a rare Belle Époque brooch, dated circa 1910, which was procured by the Australian opera singer Dame Nellie Melba at the height of her career. The turquoise and diamond piece is valued at CHF 250,000 to CHF 350,000.

The sale also encompasses several Art Deco pieces from Cartier. Three brooches, formerly in the collection of Countess Béatrice of Granard OBE, have a high presale estimate of CHF 220,000. A diamond Cartier bandeau, which can also be worn as a choker, two bracelets and a brooch, is valued at up to CHF 500,000.

Highlights from the collection are available for viewing at Christie’s London on October 22 and 23, and at the Four Seasons Hotel des Bergues, Geneva, from November 7 to 12.

Source: DCLA

$14M Blue Diamond to Headline Christie’s Geneva

A fancy deep blue diamond ring with a high estimate of CHF 14 million will go under the hammer at Christie’s Geneva Magnificent Jewels auction next month.

The 7.03 carat stone, mounted by Moussaieff, will lead the November auction, Christie’s said Thursday. Another prominent lot is a 46.93 carat, D color, internally flawless diamond ring, which is expected to fetch CHF 3.8 million to 4.5 million.

Christie’s will also offer a 42.97 carat Burmese sapphire pendant, valued at up to CHF 3 million, and a pair of untreated Colombian emerald earrings, each weighing over 7.5 carats, with a presale estimate of CHF 1 million to 1.5 million.

Other items on offer include a rare Belle Époque brooch, dated circa 1910, which was procured by the Australian opera singer Dame Nellie Melba at the height of her career. The turquoise and diamond piece is valued at CHF 250,000 to CHF 350,000.

The sale also encompasses several Art Deco pieces from Cartier. Three brooches, formerly in the collection of Countess Béatrice of Granard OBE, have a high presale estimate of CHF 220,000. A diamond Cartier bandeau, which can also be worn as a choker, two bracelets and a brooch, is valued at up to CHF 500,000.

Highlights from the collection are available for viewing at Christie’s London on October 22 and 23, and at the Four Seasons Hotel des Bergues, Geneva, from November 7 to 12.

Source: DCLA

Rio Tinto Output Falls Amid Lower Grades

Lower mining grades and reduced ore availability contributed to a drop in Rio Tinto’s third-quarter diamond production, the company reported Wednesday.

Output at its wholly owned Argyle mine in Australia fell 7% year on year, yielding 3.6 million carats in the three-month period ending September 30. Production was hampered by lower grades, despite stronger mining and processing rates, Rio Tinto said.

Rio Tinto’s share of production at the Diavik mine in Canada also shrank 7% to 994,000 carats for the same period due to lower ore availability both underground and at the A21 extension pipe it opened in August last year. The company owns 60% of the deposit, with Dominion Diamond Mines holding the remainder.

Rio Tinto’s total diamond production, including its share of Diavik goods, dropped 7% to 4.5 million carats.

For the first nine months of the year, the miner produced 12.8 million carats, compared to 14.1 million in the same period of 2018. Its 2019 forecast remains unchanged at 15 million to 17 million carats, down from 18.4 million carats last year.

Source: DCLA

Rio Tinto Output Falls Amid Lower Grades

Lower mining grades and reduced ore availability contributed to a drop in Rio Tinto’s third-quarter diamond production, the company reported Wednesday.

Output at its wholly owned Argyle mine in Australia fell 7% year on year, yielding 3.6 million carats in the three-month period ending September 30. Production was hampered by lower grades, despite stronger mining and processing rates, Rio Tinto said.

Rio Tinto’s share of production at the Diavik mine in Canada also shrank 7% to 994,000 carats for the same period due to lower ore availability both underground and at the A21 extension pipe it opened in August last year. The company owns 60% of the deposit, with Dominion Diamond Mines holding the remainder.

Rio Tinto’s total diamond production, including its share of Diavik goods, dropped 7% to 4.5 million carats.

For the first nine months of the year, the miner produced 12.8 million carats, compared to 14.1 million in the same period of 2018. Its 2019 forecast remains unchanged at 15 million to 17 million carats, down from 18.4 million carats last year.

Source: DCLA

Deloitte to liquidate dodgy Australian diamond miner

Consultants from Deloitte have been tapped to oversee a third high profile administration in weeks. In the firm’s latest restructuring win, Deloitte Financial Advisory has been appointed by the Federal Court of Australia as a provisional liquidator of Merlin Diamonds.

The appointment comes after the Australian Securities and Investments Commission (ASIC), an independent Australian government body that acts as Australia’s corporate regulator, asked the Court to wound up Merlin Diamonds, which is the parent of Merlin diamond mine in the Northern Territory, about 80 kilometres south of Borroloola.

The Merlin diamond mine was discovered more than 25 years ago, and first went into operation in 2000. Shortly after opening, the site yielded Australia’s largest diamond, a 104.73 carat stone back ten valued at over half a million US dollar’s. In 2017, the site also yielded a 35.26-carat rough brown diamond believed to be the fifth largest stone discovered in the country.

Under the ownership of Merlin Diamonds previous owners include Ashton Mining, Rio Tinto and North Australian Diamonds the mine’s total production however never reached the targets set. The Merlin diamond mine is currently one of only three diamond mines in Australia, and was set to become Australia’s last operating diamond mine when the Argyle mine in Western Australia ceases operation next year.

In October, ASIC kicked off a probe into a $13 million loan from the mining group to a private company associated to the diamond producer’s owner. The owner of Merlin Diamonds, mining magnate Joseph Gutnick, had in recent years completed a number of such loans and has proven unwilling or incapable of repaying the loans.

The instigation came shortly after an arbitration was started in Western Australia and the Northern Territory by former contractors and employees of Merlin Diamonds, who claim that they are owed more than $1.2 million in payments. Shares of Merlin Diamonds were suspended from trading last year after its management failed to file a quarterly report with the Australian Securities Exchange.

Provisional liquidation

Based on ASIC’s claim that there is a “justifiable lack of confidence in the directors’ conduct and their ability to manage Merlin’s affairs in the best interests of its shareholders and creditors”, the Court has pushed Merlin Diamonds into provisional liquidation.

Deloitte Financial Advisory has been tasked with assessing the financial situation, shedding light on the status of the loan portfolio, and drafting a plan on how to redeem stakeholders. Meanwhile, future options for the Merlin Diamonds and the Merlin diamond mine will be explored.

Earlier this month, restructuring experts from Deloitte were tapped to manage the wind-down of Karen Millen in Australia. The firm’s consultants further played their part in completing the sale of collapsed SME lender Axsesstoday.

Source: DCLA