NYC Diamond District Spared After Riots, Looting Continue Nationwide

Following JCK’s special report yesterday on the nationwide looting of jewelry stores—particularly those in Minneapolis and Chicago—similar incidents of violence, vandalism, and theft continue to occur around the country.

After days of ongoing protests demanding justice for George Floyd, the 46-year-old Minneapolis man who was killed in police custody on Memorial Day, New York City’s SoHo neighborhood was hit especially hard: Rolex, Bloomingdale’s, and independently owned AUrate New York and Broken English were among the retailers who sustained damage, inventory loss, or both.

Mayor Bill DeBlasio mandated an 11 p.m. curfew Monday night that was largely ignored. A rash of looting overtook Midtown Manhattan, with Macy’s, Urban Outfitters, and other retailers suffering damage and destruction.

Ahead of these events, members of the Jewelers Helping Jewelers Facebook group posted several videos of 47th Street storefronts and buildings preparing for unrest throughout Monday morning and afternoon. Most of the storefronts on the block appeared to be boarded and heavily guarded.

Today, several vendors from the District notified JCK that local businesses emerged unscathed.

Nearby gem and jewelry businesses were not so lucky. According to one report, Madison Jewelers on Madison Avenue near 46th Street, Zales at 417 Fifth Avenue, and Astro Gallery at 417 Fifth Avenue were among the jewelry and gem businesses looted and/or vandalized.

Additionally, since yesterday’s report, JCK has learned of looting and damage at the Providence Place Mall in Providence, R.I.; in Santa Monica, Calif., where the King Baby studio and corporate office was looted; and in St. Louis, where a retired police captain was shot and killed in front of a pawn shop.

In Richmond, Va., Waller & Co. Jewelers, described as one that city’s historic black-owned business, also experienced looting.

If you discover your store has been robbed or damaged, John Kennedy, president of Jewelers’ Security Alliance, urges jewelers not to rush to the scene. The organization. posted this bulletin outlining jewelry store protection guidelines.

“A jeweler shouldn’t respond to the store until the situation has calmed down, otherwise he or she puts themselves at risk,” Kennedy says. “If you know there is damage, the first thing may be to call your insurance agent. The next thing to do may be to get police or a guard service to accompany you when you respond to the scene. The next thing is to hire a security guard to secure your store. Finally, you must call the tradespeople you need to repair glass and construction, restore locks, and clean up.”

Beginning tonight in New York City, an extended curfew from 8 p.m. to 5 a.m. will be in effect through Sunday.

Source: DCLA

NYC Diamond District Spared After Riots, Looting Continue Nationwide

Following JCK’s special report yesterday on the nationwide looting of jewelry stores—particularly those in Minneapolis and Chicago—similar incidents of violence, vandalism, and theft continue to occur around the country.

After days of ongoing protests demanding justice for George Floyd, the 46-year-old Minneapolis man who was killed in police custody on Memorial Day, New York City’s SoHo neighborhood was hit especially hard: Rolex, Bloomingdale’s, and independently owned AUrate New York and Broken English were among the retailers who sustained damage, inventory loss, or both.

Mayor Bill DeBlasio mandated an 11 p.m. curfew Monday night that was largely ignored. A rash of looting overtook Midtown Manhattan, with Macy’s, Urban Outfitters, and other retailers suffering damage and destruction.

Ahead of these events, members of the Jewelers Helping Jewelers Facebook group posted several videos of 47th Street storefronts and buildings preparing for unrest throughout Monday morning and afternoon. Most of the storefronts on the block appeared to be boarded and heavily guarded.

Today, several vendors from the District notified JCK that local businesses emerged unscathed.

Nearby gem and jewelry businesses were not so lucky. According to one report, Madison Jewelers on Madison Avenue near 46th Street, Zales at 417 Fifth Avenue, and Astro Gallery at 417 Fifth Avenue were among the jewelry and gem businesses looted and/or vandalized.

Additionally, since yesterday’s report, JCK has learned of looting and damage at the Providence Place Mall in Providence, R.I.; in Santa Monica, Calif., where the King Baby studio and corporate office was looted; and in St. Louis, where a retired police captain was shot and killed in front of a pawn shop.

In Richmond, Va., Waller & Co. Jewelers, described as one that city’s historic black-owned business, also experienced looting.

If you discover your store has been robbed or damaged, John Kennedy, president of Jewelers’ Security Alliance, urges jewelers not to rush to the scene. The organization. posted this bulletin outlining jewelry store protection guidelines.

“A jeweler shouldn’t respond to the store until the situation has calmed down, otherwise he or she puts themselves at risk,” Kennedy says. “If you know there is damage, the first thing may be to call your insurance agent. The next thing to do may be to get police or a guard service to accompany you when you respond to the scene. The next thing is to hire a security guard to secure your store. Finally, you must call the tradespeople you need to repair glass and construction, restore locks, and clean up.”

Beginning tonight in New York City, an extended curfew from 8 p.m. to 5 a.m. will be in effect through Sunday.

Source: DCLA

Botswana Diamonds recovers over 100 macro diamonds

Botswana Diamonds PLC announced that it has concluded the processing of two bulk samples taken from the Marsfontein diamond development project in the Limpopo Province of South Africa.  The samples comprised 58-tons of fresh high-interest kimberlite and 62-tons of kimberlitic material from one of the residual stockpiles, known as ‘Dump E’.

Highlights:

• 87 macro diamonds were recovered from the fresh kimberlite giving a modelled grade of 50 cpht. (carats per hundred tons)
• 24 macro diamonds were recovered from Dump E giving a modelled grade of 16 cpht.

Grades are quoted at a +1.5 mm screen bottom size cut off

James Campbell, Managing Director, commented: “This bulk sampling campaign, which was carried out with the company’s royalty mining contractor Eurafrican Diamond Corporation, had two objectives. The first was to test the grade of the fresh kimberlite and the second was to confirm the grades of one of the mine dumps. Both were achieved, and proof of the fresh kimberlite grade paves the way for further exploration work on Marsfontein to target potential blows.

“The kimberlite grade is aligned with those achieved at Klipspringer mine and Thorny River, which are both nearby, indicating the considerable extent of the kimberlite dyke system. Options will be investigated on exploitation of the dumps once the nationwide lock down in South Africa is lifted and a sense of normality returns to diamond markets, post the global Covid-19 pandemic crisis.”

Results of the bulk sampling program, including modelled results are illustrated in the table below:

Source	Sample Size (tons)	No of stones	Carats	Raw Grade (cpht) +1.7mm BCOS	Average stone size cts	Largest stone cts	Modelled Grade (cpht) +1.5mm BCOS	Modelled Grade (cpht) +1.0mm BCOS
Kimberlite	58	87	16.53	28.5	0.19	2.28	50	53
Dump E	62	24	6.77	10.9	0.28	1.38	16	21

Botswana diamonds

The fresh kimberlite was identified as originating from the M8 dyke system, which extends to the Klipspringer diamond mine c.11 km to the west and the company’s Thorny River project to c.5 km the east. The Dump E material was predominantly a mix of M8 kimberlite and dolerite.

Both samples were treated at Eurafrican Diamond Corporation’s processing facility. They were subjected to primary and secondary crushing, pan plant concentration, grease and x-ray recovery and jigging with a nominal bottom cut-off of +1.7mm. These tailings have been retained for future analyses, as required.

The grade modelling was undertaken by Interlaced Consulting. It assumed a conventional kimberlite processing plant, including a re-crush circuit (to recover more finer diamonds).

Modelled results determined are in line with previous estimates and diamond recoveries from the nearby Klipspringer diamond mine.

Work will re-commence at Marsfontein and Thorny River as soon as Covid-19 restrictions are lifted to enable travel to the work areas.

Source: DCLA

Botswana Diamonds recovers over 100 macro diamonds

Botswana Diamonds PLC announced that it has concluded the processing of two bulk samples taken from the Marsfontein diamond development project in the Limpopo Province of South Africa.  The samples comprised 58-tons of fresh high-interest kimberlite and 62-tons of kimberlitic material from one of the residual stockpiles, known as ‘Dump E’.

Highlights:

• 87 macro diamonds were recovered from the fresh kimberlite giving a modelled grade of 50 cpht. (carats per hundred tons)
• 24 macro diamonds were recovered from Dump E giving a modelled grade of 16 cpht.

Grades are quoted at a +1.5 mm screen bottom size cut off

James Campbell, Managing Director, commented: “This bulk sampling campaign, which was carried out with the company’s royalty mining contractor Eurafrican Diamond Corporation, had two objectives. The first was to test the grade of the fresh kimberlite and the second was to confirm the grades of one of the mine dumps. Both were achieved, and proof of the fresh kimberlite grade paves the way for further exploration work on Marsfontein to target potential blows.

“The kimberlite grade is aligned with those achieved at Klipspringer mine and Thorny River, which are both nearby, indicating the considerable extent of the kimberlite dyke system. Options will be investigated on exploitation of the dumps once the nationwide lock down in South Africa is lifted and a sense of normality returns to diamond markets, post the global Covid-19 pandemic crisis.”

Results of the bulk sampling program, including modelled results are illustrated in the table below:

Source	Sample Size (tons)	No of stones	Carats	Raw Grade (cpht) +1.7mm BCOS	Average stone size cts	Largest stone cts	Modelled Grade (cpht) +1.5mm BCOS	Modelled Grade (cpht) +1.0mm BCOS
Kimberlite	58	87	16.53	28.5	0.19	2.28	50	53
Dump E	62	24	6.77	10.9	0.28	1.38	16	21

Botswana diamonds

The fresh kimberlite was identified as originating from the M8 dyke system, which extends to the Klipspringer diamond mine c.11 km to the west and the company’s Thorny River project to c.5 km the east. The Dump E material was predominantly a mix of M8 kimberlite and dolerite.

Both samples were treated at Eurafrican Diamond Corporation’s processing facility. They were subjected to primary and secondary crushing, pan plant concentration, grease and x-ray recovery and jigging with a nominal bottom cut-off of +1.7mm. These tailings have been retained for future analyses, as required.

The grade modelling was undertaken by Interlaced Consulting. It assumed a conventional kimberlite processing plant, including a re-crush circuit (to recover more finer diamonds).

Modelled results determined are in line with previous estimates and diamond recoveries from the nearby Klipspringer diamond mine.

Work will re-commence at Marsfontein and Thorny River as soon as Covid-19 restrictions are lifted to enable travel to the work areas.

Source: DCLA

Swiss Watch Exports Down 81% in April

Swiss watch exports plunged in April as coronavirus lockdowns brought the entire supply chain to a near halt.

“Swiss watch exports were extremely low in April as a direct result of the standstill in production, distribution and sales, causing them to collapse,” the Federation of the Swiss Watch Industry reported Tuesday.

Shipments slid 81% to CHF 328.8 million ($339.1 million) for the month, with nearly all markets declining significantly. Orders from Hong Kong plummeted 83% to CHF 42.2 million ($43.5 million), while supply to the US dropped 86% to CHF 27.9 million ($28.8 million). Exports to Japan fell 86% to CHF 19.5 million ($20.1 million).

The decline in China was more mild, slipping 16% to CHF 110.3 million ($113.7 million), and accounting for one-third of total Swiss watch exports in April, as the economy began to recover. However that compares with an increase of 11% to CHF 155.9 million ($160.6 million) in March. In February, shipments to China fell 52% due to the coronavirus.

All price categories “contracted sharply,” as exports of timepieces valued between CHF 500 ($516) to CHF 3,000 ($3,095) declined 72% by value. Watches worth more than CHF 3,000 dropped 86%.

Shipments of timepieces made from precious metal decreased 82% to CHF 102.4 million ($105.6 million). Supply of gold and steel watches saw the steepest decline, tumbling 90% to CHF 28.4 million ($29.3 million).

Source: DCLA

Swiss Watch Exports Down 81% in April

Swiss watch exports plunged in April as coronavirus lockdowns brought the entire supply chain to a near halt.

“Swiss watch exports were extremely low in April as a direct result of the standstill in production, distribution and sales, causing them to collapse,” the Federation of the Swiss Watch Industry reported Tuesday.

Shipments slid 81% to CHF 328.8 million ($339.1 million) for the month, with nearly all markets declining significantly. Orders from Hong Kong plummeted 83% to CHF 42.2 million ($43.5 million), while supply to the US dropped 86% to CHF 27.9 million ($28.8 million). Exports to Japan fell 86% to CHF 19.5 million ($20.1 million).

The decline in China was more mild, slipping 16% to CHF 110.3 million ($113.7 million), and accounting for one-third of total Swiss watch exports in April, as the economy began to recover. However that compares with an increase of 11% to CHF 155.9 million ($160.6 million) in March. In February, shipments to China fell 52% due to the coronavirus.

All price categories “contracted sharply,” as exports of timepieces valued between CHF 500 ($516) to CHF 3,000 ($3,095) declined 72% by value. Watches worth more than CHF 3,000 dropped 86%.

Shipments of timepieces made from precious metal decreased 82% to CHF 102.4 million ($105.6 million). Supply of gold and steel watches saw the steepest decline, tumbling 90% to CHF 28.4 million ($29.3 million).

Source: DCLA

Dominion Diamond unveils plan to avoid bankruptcy

Canada’s Dominion Diamond Mines has unveiled a transaction that would allow it to exit court protection from creditors and access short-term operating funds, which would pave the way to eventually restart its idled Ekati mine in Canada’s Northwest Territories.

The company, which owns and operates the iconic Ekati diamond mine and also has a 40% interest in the nearby Diavik, said it had signed a letter of intent with an affiliate of The Washington Companies.

The privately held Montana-based conglomerate bought Dominion for $1.2 billion in 2017 when the miner was the world’s third-largest producer of rough diamonds by value.

Under the agreement, which requires court approval, Washington would buy the company’s assets for about $177 million, while assuming its operating liabilities.

It would also provide Dominion with up to $84 million in short-term debtor-in-possession financing.

Ekati has been halted since March to help slow down the spread of the coronavirus pandemic. The operation was left with about $180 million worth of inventory, which it has been unable to sell since its Belgian retailers remain closed. 

The diamond miner said at the time that covid-19 had a “devastating impact” on the global diamond mining industry, affecting the company.

According to court documents seeking bankruptcy protection from creditors, Dominion revenue from diamond sales last year reached about $528 million.

The company said the proposed sale would be conditional on reaching an agreement with Rio Tinto on the Diavik joint venture. Failing that, Dominion would exclude its interest in the Yellowknife diamond mine from the transaction.

The miner is a major employer in the Northwest Territories, with 634 workers, 60% of whom are locals. Only 212 people are currently at the mines, which are fly-in and fly-out operations. This allows for a pre-screening of the staff before they are allowed to board flights to Ekati and Diavik.

Shattered dreams

The global coronavirus outbreak squashed diamond miners’ dawning hopes of a recovery in a sector already reeling from weak prices and demand since late 2018.

De Beers, the world’s largest producer by value, cut 2020 production guidance by a fifth last month after earlier cancelling its April sales event.

Russia’s Alrosa, the world’s top diamond producer by output, saw sales for rough and polished diamonds drop to $15.6 million. The figure stood in stark contrast to the $152.8 million the diamond miner fetched in March and the $405 million in January.

Lucara Diamond, another Canadian company, posted earlier this month a net loss of $3.2 million, or $0.01 a share, for the first three months of the year.

The figure was in sharp contrast with the $7.4 million in net income, or $0.02 in earning per share the miner reported in the same period last year.

South Africa’s Petra Diamonds recently delayed interest payments to borrow $21 million in new debt, a crucial move to keep the company afloat.

Investment banks are increasingly reluctant to extend credit to diamond producers, as inventory is not being sold and defaults are possible, analysts have warned.

“We are concerned about an oversupply of rough diamonds following the reopening of economies, as a lot of inventory could potentially be flooded into the system and the market might not be able to absorb all of it, resulting in increased pricing pressure,” Citi said in an early May note.

Source: DCLA