De Grisogono’s Bankruptcy and the 800 Carat Diamond

This week, The New Yorker ran a fascinatingarticle about how Canadian miner Lucara has used new technology to unearth a string of freakishly large diamonds from its Karowe mine in Botswana. Among them was the 812.77 ct. Constellation (pictured), discovered in November 2015.

In 2016, the Constellation was purchased by Swiss jeweler de Grisogono and Dubai, United Arab Emirates, diamond company Nemesis International for $63 million—the largest price ever paid for an uncut stone.

What makes this interesting is that, also this week, de Grisogono filed for bankruptcy in Switzerland. The move followed reports that linked the red carpet favorite to Isabel dos Santos, the daughter of Angola’s former president, and her husband, Sindika Dokolo. De Grisogono declined comment on the reports; dos Santos dubbed the allegations “misleading and untrue.”

At press time, it was not clear whether de Grisogono still has an ownership stake in the Constellation—and if it does, what will happen to it, post-bankruptcy. The fine jeweler did not return a request for comment from JCK.

After the purchase, Nemesis cut the Constellation into eight different stones, including the 313 ct. Constellation 1. GIA subsequently rated the emerald cut the largest D-color diamond on record. Last year, a Nemesis International spokesperson told JCK the Constellation 1 is “priceless,” and it had “no commercial plans” for the stone.

But while Nemesis may own the Constellation and its offshoots, it’s not clear who owns Nemesis. In December, an Angolan court linked Nemesis to dos Santos and Dokolo. Last week, the International Consortium of Investigative Journalists also tied Nemesis to Dokolo. Nemesis did not respond to a request for comment.

Nemesis was founded in 2015. Under chief executive officer Konema Mwenenge—who, in 2010, told Global Witness that he had a “professional relationship” with Dokolo—it’s made a name for itself in its home base of Dubai.

In October 2017, it opened the city’s first high-tech diamond-cutting factory, Almas Diamond Services, in partnership with Sodiam, the Angolan state diamond company. At the time, Sodiam also held a stake in de Grisogono. (Two months later, Sodiam said it was divesting its holding.)

In 2016, de Grisogono said its “partnership with Nemesis International [allows] the company to market their best stones.” That same year, Nemesis sold the Swiss company a 404 ct. diamond discovered at the Lulo mine in Angola.

That diamond, the largest ever found in Angola, was cut into a 163 ct. D flawless and christened the “Art of de Grisogono, Creation 1.” It sold for $34 million at a Christie’s Geneva auction in 2017.

The Constellation 1, if it ever comes up for sale, might double that price. Christie’s jewelry specialist François Curiel told The New Yorker it could fetch as much as $70 million.That’s a nice chunk of change—whoever gets it.

Source: DCLA

De Grisogono’s Bankruptcy and the 800 Carat Diamond

This week, The New Yorker ran a fascinatingarticle about how Canadian miner Lucara has used new technology to unearth a string of freakishly large diamonds from its Karowe mine in Botswana. Among them was the 812.77 ct. Constellation (pictured), discovered in November 2015.

In 2016, the Constellation was purchased by Swiss jeweler de Grisogono and Dubai, United Arab Emirates, diamond company Nemesis International for $63 million—the largest price ever paid for an uncut stone.

What makes this interesting is that, also this week, de Grisogono filed for bankruptcy in Switzerland. The move followed reports that linked the red carpet favorite to Isabel dos Santos, the daughter of Angola’s former president, and her husband, Sindika Dokolo. De Grisogono declined comment on the reports; dos Santos dubbed the allegations “misleading and untrue.”

At press time, it was not clear whether de Grisogono still has an ownership stake in the Constellation—and if it does, what will happen to it, post-bankruptcy. The fine jeweler did not return a request for comment from JCK.

After the purchase, Nemesis cut the Constellation into eight different stones, including the 313 ct. Constellation 1. GIA subsequently rated the emerald cut the largest D-color diamond on record. Last year, a Nemesis International spokesperson told JCK the Constellation 1 is “priceless,” and it had “no commercial plans” for the stone.

But while Nemesis may own the Constellation and its offshoots, it’s not clear who owns Nemesis. In December, an Angolan court linked Nemesis to dos Santos and Dokolo. Last week, the International Consortium of Investigative Journalists also tied Nemesis to Dokolo. Nemesis did not respond to a request for comment.

Nemesis was founded in 2015. Under chief executive officer Konema Mwenenge—who, in 2010, told Global Witness that he had a “professional relationship” with Dokolo—it’s made a name for itself in its home base of Dubai.

In October 2017, it opened the city’s first high-tech diamond-cutting factory, Almas Diamond Services, in partnership with Sodiam, the Angolan state diamond company. At the time, Sodiam also held a stake in de Grisogono. (Two months later, Sodiam said it was divesting its holding.)

In 2016, de Grisogono said its “partnership with Nemesis International [allows] the company to market their best stones.” That same year, Nemesis sold the Swiss company a 404 ct. diamond discovered at the Lulo mine in Angola.

That diamond, the largest ever found in Angola, was cut into a 163 ct. D flawless and christened the “Art of de Grisogono, Creation 1.” It sold for $34 million at a Christie’s Geneva auction in 2017.

The Constellation 1, if it ever comes up for sale, might double that price. Christie’s jewelry specialist François Curiel told The New Yorker it could fetch as much as $70 million.That’s a nice chunk of change—whoever gets it.

Source: DCLA

De Grisogono Files for Bankruptcy Amid Probe

De Grisogono has filed for bankruptcy shortly after being caught up in an alleged money-laundering scandal involving the daughter of Angola’s former president and her husband.

Last week, media reports stated Isabel dos Santos’s husband, Sindika Dokolo, bought a stake in the Swiss luxury jeweler together with Angolan national diamond-trading company Sodiam through a Malta-based shell company. Over $150 million in Angolan money was invested in De Grisogono, Bloomberg reported.

The jeweler has now filed for creditor protection following failed talks to find a buyer over the last few months. If protection is granted, De Grisogono will implement a “mass redundancy procedure” in which all 65 employees at the Swiss office will be dismissed, the jeweler said Wednesday.

“Without financial support from the current shareholders, and without a new investor, unfortunately the company cannot continue as a going concern,” De Grisogono continued.

On January 22, Angola’s prosecutor general launched an investigation into dos Santos, while an Angolan court froze local assets belonging to her and her husband. Prosecutors alleged they were complicit in illegal transactions in Angola that cost the government $1.14 billion, the Bloomberg report explained.

Dos Santos said the news stories about her were part of a political witch hunt to discredit her, and she insisted her fortune was self-made.

Rumors concerning the jeweler’s connection to dos Santos had been circulating on social media since October 2017. The Instagram account @degrisogononews was specifically set up to bring attention to the questionable diamond-trading practices attributed to dos Santos and her husband.

Following the so-called Luanda Leaks reported by The New York Times and other international publications, gemstone dealer and explorer Yianni Melas revealed he was the Instagram account owner on January 20.

Melas went on a 31-day hunger strike in November and December 2017 to protest the sale of The Art of De Grisogono, Creation I at Christie’s Geneva. The necklace featured a 163.41-carat, D-flawless center diamond sourced in Angola.

On the news of the Swiss house going into bankruptcy, Melas told Rapaport News, “[During my hunger strike,] there is a photograph of me with my hands up in the air at the Acropolis because I knew that one day this would happen.”

“I feel mixed emotion, sadness about how an amazing brand associated with beautiful jewels would lose its name, but at the same time the overwhelming feeling is that I am happy because it belonged to somebody who didn’t deserve it. And also it’s a lesson to anyone who is involved with brands which are not good that initially it appears great and beautiful but in the end justice prevails,” Melas added.

Source: DCLA

De Grisogono Files for Bankruptcy Amid Probe

De Grisogono has filed for bankruptcy shortly after being caught up in an alleged money-laundering scandal involving the daughter of Angola’s former president and her husband.

Last week, media reports stated Isabel dos Santos’s husband, Sindika Dokolo, bought a stake in the Swiss luxury jeweler together with Angolan national diamond-trading company Sodiam through a Malta-based shell company. Over $150 million in Angolan money was invested in De Grisogono, Bloomberg reported.

The jeweler has now filed for creditor protection following failed talks to find a buyer over the last few months. If protection is granted, De Grisogono will implement a “mass redundancy procedure” in which all 65 employees at the Swiss office will be dismissed, the jeweler said Wednesday.

“Without financial support from the current shareholders, and without a new investor, unfortunately the company cannot continue as a going concern,” De Grisogono continued.

On January 22, Angola’s prosecutor general launched an investigation into dos Santos, while an Angolan court froze local assets belonging to her and her husband. Prosecutors alleged they were complicit in illegal transactions in Angola that cost the government $1.14 billion, the Bloomberg report explained.

Dos Santos said the news stories about her were part of a political witch hunt to discredit her, and she insisted her fortune was self-made.

Rumors concerning the jeweler’s connection to dos Santos had been circulating on social media since October 2017. The Instagram account @degrisogononews was specifically set up to bring attention to the questionable diamond-trading practices attributed to dos Santos and her husband.

Following the so-called Luanda Leaks reported by The New York Times and other international publications, gemstone dealer and explorer Yianni Melas revealed he was the Instagram account owner on January 20.

Melas went on a 31-day hunger strike in November and December 2017 to protest the sale of The Art of De Grisogono, Creation I at Christie’s Geneva. The necklace featured a 163.41-carat, D-flawless center diamond sourced in Angola.

On the news of the Swiss house going into bankruptcy, Melas told Rapaport News, “[During my hunger strike,] there is a photograph of me with my hands up in the air at the Acropolis because I knew that one day this would happen.”

“I feel mixed emotion, sadness about how an amazing brand associated with beautiful jewels would lose its name, but at the same time the overwhelming feeling is that I am happy because it belonged to somebody who didn’t deserve it. And also it’s a lesson to anyone who is involved with brands which are not good that initially it appears great and beautiful but in the end justice prevails,” Melas added.

Source: DCLA

Graff Unit Signs Polishing Deal with Lucapa

Graff-owned diamond manufacturer Safdico will cut and polish a portion of rough from the Lulo mine through a partnership with Lucapa Diamond Company.

Safdico will have the rights to buy up to 60% of Lulo’s annual rough production under the terms of Angola’s new reform program, which went into effect last year. The new guidelines open sales to a wider range of buyers of the miner’s choosing, rather than forcing producers to sell to a list of clients approved by state-owned diamond company Sodiam.

All diamonds Safdico purchases from Lucapa will be placed into the joint partnership, the miner said Wednesday. Once polished, procurement and manufacturing costs will be deducted, with any profit from the sale of the polished diamond to be split equally between Lucapa and Safdico.

Safdico has already purchased 4,900 carats of rough from Lucapa through the partnership. Profits from the sale of the first batch of polished will be realized in the first quarter, Lucapa noted.

Lucapa, which operates the mine in Angola, first announced its intention to polish its own diamonds in February 2019 in an effort to maximize shareholder value by cutting out third-party manufacturers. Earlier this month, the company also debuted its first polished stones from the Mothae mine in Lesotho. Those included six D-color diamonds from a 36-carat rough, the largest of which was a pear-shaped, 8.88-carat, flawless stone.

Lucapa also plans to expand its total group production to more than 60,000 carats in 2020, it said.

“This production increase, coupled with the new revenue streams generated from the cutting and polishing agreement with Safdico, will enable [the company] to generate higher returns for its partners,” Lucapa explained.

Source: DCLA

Graff Unit Signs Polishing Deal with Lucapa

Graff-owned diamond manufacturer Safdico will cut and polish a portion of rough from the Lulo mine through a partnership with Lucapa Diamond Company.

Safdico will have the rights to buy up to 60% of Lulo’s annual rough production under the terms of Angola’s new reform program, which went into effect last year. The new guidelines open sales to a wider range of buyers of the miner’s choosing, rather than forcing producers to sell to a list of clients approved by state-owned diamond company Sodiam.

All diamonds Safdico purchases from Lucapa will be placed into the joint partnership, the miner said Wednesday. Once polished, procurement and manufacturing costs will be deducted, with any profit from the sale of the polished diamond to be split equally between Lucapa and Safdico.

Safdico has already purchased 4,900 carats of rough from Lucapa through the partnership. Profits from the sale of the first batch of polished will be realized in the first quarter, Lucapa noted.

Lucapa, which operates the mine in Angola, first announced its intention to polish its own diamonds in February 2019 in an effort to maximize shareholder value by cutting out third-party manufacturers. Earlier this month, the company also debuted its first polished stones from the Mothae mine in Lesotho. Those included six D-color diamonds from a 36-carat rough, the largest of which was a pear-shaped, 8.88-carat, flawless stone.

Lucapa also plans to expand its total group production to more than 60,000 carats in 2020, it said.

“This production increase, coupled with the new revenue streams generated from the cutting and polishing agreement with Safdico, will enable [the company] to generate higher returns for its partners,” Lucapa explained.

Source: DCLA

Swarovski Debuts New Lab-Grown Diamond Colors

Crystal brand Swarovski introduced 16 new synthetic-diamond colors at Paris Haute Couture Fashion Week.

The new hues fall into four creative categories in which Swarovski claims to play a role, it said last week. Each of the four areas — fashion, art, music and architecture — includes four colors of cushion-cut lab-grown diamonds.

Every category in the collection is led by a “hero” color. These include Androgyny Flamingo for fashion, Cubist Sky for art, Heavy Metal Cherry for music, and Gothic Cognac for architecture. Some of the other colors in the collection are Punk Lipstick, Surrealist Butter, Draped Fire and Electro Arctic.

The stones showcased in Paris range from 1.25 to 2.50 carats, while the 16 colors will be available at stores in 0.25- to 1.50-carat sizes.

“I’d like to think that these stones have endless potential, and are able to bring any idea to life,” said Markus Langes-Swarovski, a member of the Austrian jeweler’s executive board. “The colors, cuts and sizes are created to inspire jewelry that has never been made or even dreamed of. It’s a toolbox of unlimited creativity.”

Swarovski first launched laboratory-grown diamonds in 2018.

Source: DCLA