Petra Diamonds sells Botswana exploration assets

Petra Diamonds (PDL.L) has agreed to sell its Botswanan exploration assets to Botswana Diamonds (BODP.L) for $300,000 and a 5% royalty on future revenue, the diamond miner, which is in the process of restructuring, said on Monday.

The purchase price will be payable in two equal instalments on or before August 31, 2021 and August 31, 2022, Petra said. Botswana Diamonds has the option to buy out the royalty for $2 million in cash.

Petra’s subsidiary Sekaka Diamonds Exploration (Pty) Limited, which Botswana Diamonds would take over, holds three prospecting licences including the KX36 project, which has an indicated resource of 17.9 million tonnes at 35 carats per hundred tonnes.

Botswana Diamonds managing director James Campbell said KX36 would be the company’s most advanced project in southern Africa, and Sekaka’s exploration database would also be “hugely complementary” to its current activities.

Petra, which has been planning to sell Sekaka since June 2018, said the deal is separate to the sales process it announced last month as part of its restructuring.

“The first tranche of the purchase consideration is not expected to be received until August 2021, making the sale too long-dated to help with Petra’s immediate cash flow challenges,” said BMO analyst Edward Sterck.

The sale still requires approval from the Botswana Competition Commission, ministerial consent in Botswana, and approval from Petra’s lenders and debtholders.

Campbell said he hopes the deal will be sealed by August 31.

Source: DCLA

Petra Diamonds sells Botswana exploration assets

Petra Diamonds (PDL.L) has agreed to sell its Botswanan exploration assets to Botswana Diamonds (BODP.L) for $300,000 and a 5% royalty on future revenue, the diamond miner, which is in the process of restructuring, said on Monday.

The purchase price will be payable in two equal instalments on or before August 31, 2021 and August 31, 2022, Petra said. Botswana Diamonds has the option to buy out the royalty for $2 million in cash.

Petra’s subsidiary Sekaka Diamonds Exploration (Pty) Limited, which Botswana Diamonds would take over, holds three prospecting licences including the KX36 project, which has an indicated resource of 17.9 million tonnes at 35 carats per hundred tonnes.

Botswana Diamonds managing director James Campbell said KX36 would be the company’s most advanced project in southern Africa, and Sekaka’s exploration database would also be “hugely complementary” to its current activities.

Petra, which has been planning to sell Sekaka since June 2018, said the deal is separate to the sales process it announced last month as part of its restructuring.

“The first tranche of the purchase consideration is not expected to be received until August 2021, making the sale too long-dated to help with Petra’s immediate cash flow challenges,” said BMO analyst Edward Sterck.

The sale still requires approval from the Botswana Competition Commission, ministerial consent in Botswana, and approval from Petra’s lenders and debtholders.

Campbell said he hopes the deal will be sealed by August 31.

Source: DCLA

Lucara to Sell all High-Value Diamonds through HB Group

Lucara is to sell all its larger rough diamonds through the Antwerp-based HB Group in what it describes as a “groundbreaking partnership”.

The Canadian miner has a reputation for high-value type IIa diamonds at its Karowe Mine, in Botswana, and was proud to announce its discovery of the 1,758-carat Sewelo (pictured), the world’s second largest diamond, last April.

It has been stockpiling all +10.8 carats, which account for around 70 per cent of its output, since early March.

Now it has announced a unique, new supply arrangement, with purchase prices based on estimated polished outcome, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing. 

 Lucara says it will benefit higher prices than it currently achieves at tender, regular cash flow, and a more efficient supply chain as well as tax benefits and beneficiation opportunities for the Botswana government.

Eira Thomas, CEO said: “Building on the partnership established for the manufacturing of the Sewelô earlier this year, Lucara is pleased to have now secured a broader supply agreement with HB to purchase all of our +10.8 carat rough diamonds, through to year-end. 

“It is our strong view that the success of our industry in these very uncertain times, requires better alignment between producers, manufacturers, and retailers to establish a healthier, more efficient global diamond supply chain.

We are excited to be working with HB to support this new paradigm.”

Source: DCLA

Lucara to Sell all High-Value Diamonds through HB Group

Lucara is to sell all its larger rough diamonds through the Antwerp-based HB Group in what it describes as a “groundbreaking partnership”.

The Canadian miner has a reputation for high-value type IIa diamonds at its Karowe Mine, in Botswana, and was proud to announce its discovery of the 1,758-carat Sewelo (pictured), the world’s second largest diamond, last April.

It has been stockpiling all +10.8 carats, which account for around 70 per cent of its output, since early March.

Now it has announced a unique, new supply arrangement, with purchase prices based on estimated polished outcome, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing. 

 Lucara says it will benefit higher prices than it currently achieves at tender, regular cash flow, and a more efficient supply chain as well as tax benefits and beneficiation opportunities for the Botswana government.

Eira Thomas, CEO said: “Building on the partnership established for the manufacturing of the Sewelô earlier this year, Lucara is pleased to have now secured a broader supply agreement with HB to purchase all of our +10.8 carat rough diamonds, through to year-end. 

“It is our strong view that the success of our industry in these very uncertain times, requires better alignment between producers, manufacturers, and retailers to establish a healthier, more efficient global diamond supply chain.

We are excited to be working with HB to support this new paradigm.”

Source: DCLA

Covid-19 Ravages De Beers Sales

De Beers’ sales and production nosedived in the second quarter as the coronavirus crushed diamond demand throughout the pipeline and forced shutdowns at several mines.

“Demand for rough diamonds was significantly impacted by a combination of Covid-19 restrictions [affecting] consumer demand and access to southern Africa, as well as severely limited midstream cutting-and-polishing capacity due to lockdowns, particularly in India,” De Beers said Thursday.

Rough sales slumped 96% year on year to $56 million after the company canceled its March-April sight — the first of the quarter — and allowed clients to defer all May and June purchases to later in the year. Sales volume plunged 97% to 300,000 carats, and prices fell as well, the miner noted.

Most sightholders were unable to attend the usual sales in Botswana due to travel restrictions. The pandemic also affected international shipments.

Meanwhile, the shutdown of India’s manufacturing sector reduced rough demand: Factories in Surat, the country’s cutting hub, closed in March for around two months, and ongoing virus outbreaks have disrupted the reopening process.

De Beers’ rough production fell 54% to 3.5 million carats during the quarter as the miner lowered its output to reflect the weak demand. Measures by southern African governments to contain the coronavirus also limited the company’s ability to operate, with Botswana and South Africa accounting for a large proportion of its mining activities, alongside Canada and Namibia.

Sales volume for the first half of 2020 slid 44% year on year to 9.2 million carats, with the average selling price down 21% at $119 per carat. The company sold a higher proportion of lower-value rough than a year ago, and average rough prices across the period slipped 8% year on year on a like-for-like basis.

Despite these setbacks, De Beers maintained its production forecast of 25 million to 27 million carats for the full year. However, it will review this outlook based on Covid-19 disruptions and “the timing and scale of the recovery in demand,” it said.

Source: DCLA

Covid-19 Ravages De Beers Sales

De Beers’ sales and production nosedived in the second quarter as the coronavirus crushed diamond demand throughout the pipeline and forced shutdowns at several mines.

“Demand for rough diamonds was significantly impacted by a combination of Covid-19 restrictions [affecting] consumer demand and access to southern Africa, as well as severely limited midstream cutting-and-polishing capacity due to lockdowns, particularly in India,” De Beers said Thursday.

Rough sales slumped 96% year on year to $56 million after the company canceled its March-April sight — the first of the quarter — and allowed clients to defer all May and June purchases to later in the year. Sales volume plunged 97% to 300,000 carats, and prices fell as well, the miner noted.

Most sightholders were unable to attend the usual sales in Botswana due to travel restrictions. The pandemic also affected international shipments.

Meanwhile, the shutdown of India’s manufacturing sector reduced rough demand: Factories in Surat, the country’s cutting hub, closed in March for around two months, and ongoing virus outbreaks have disrupted the reopening process.

De Beers’ rough production fell 54% to 3.5 million carats during the quarter as the miner lowered its output to reflect the weak demand. Measures by southern African governments to contain the coronavirus also limited the company’s ability to operate, with Botswana and South Africa accounting for a large proportion of its mining activities, alongside Canada and Namibia.

Sales volume for the first half of 2020 slid 44% year on year to 9.2 million carats, with the average selling price down 21% at $119 per carat. The company sold a higher proportion of lower-value rough than a year ago, and average rough prices across the period slipped 8% year on year on a like-for-like basis.

Despite these setbacks, De Beers maintained its production forecast of 25 million to 27 million carats for the full year. However, it will review this outlook based on Covid-19 disruptions and “the timing and scale of the recovery in demand,” it said.

Source: DCLA

Kunming partners with Rio Tinto for Argyle diamonds

The world’s second-largest miner, Rio Tinto (ASX, LON, NYSE: RIO), announced that Hong Kong-based coloured diamond specialist Kunming Diamonds is now one of the company’s 13 authorized partners for Argyle pink diamonds. 

In a press release, Rio said this means Kunming will be entrusted with the care and custody of the gems. 

Established in 1987, Kunming is a global, multi-generational company that has built its business into one of Asia’s leading coloured diamond specialists. In 2019, the company was successful in acquiring the entire Argyle Pink Everlasting Collection, a one-off exclusive selection of certified Argyle pink and red diamonds. 

“This is a wonderful honour and showcases our commitment to bringing the world’s rarest diamonds to our global partners and client base,” Harsh Maheshwari, director of Kunming, said in the brief.

Source: DCLA