Bristow to finally put Rockwell Diamonds saga to bed after firm unveils wind-up plan

 

MARK Bristow, CEO of Barrick Gold Corporation, is to finally close the book on Rockwell Diamonds, a company he chaired and which he once attempted to save from bankruptcy.

Rockwell Diamonds announced today the Canadian listing authority had revoked a cease trade order which had been issued as the company had previously failed to produce quarterly numbers with the accompanying management discussion.

The company today filed third quarter numbers and announced its intention to wind up its affairs in which a company owned by Bristow, ‘Bristco’ would mop up the interests of minority shareholders in Rockwell and put them into ‘Amalco’.

Dissenting shareholders would have their interests exchanged on a one-for-one basis for redeemable preference shares of Amalco.

The redeemable preference shares would then be immediately redeemed by Amalco in exchange for half a Canadian cent per share, payable in cash. A meeting of shareholders requiring a simple majority has been arranged for March 2.

Bristow first sought to bail out Rockwell Diamonds, which was once run by his brother, John Bristow, in 2014, in which Mark Bristow bought $1.1m in debentures. In 2016, Bristow embarked on a process of ‘fumigation’ in which he restructured the firm’s board and conducted an overview of its operating activities.

Unfortunately, the company never managed to gain traction at its key asset, the 200,000 cubic metres a month Wouterspan, situated in the alluvial diamond fields region of the Northern Cape province.

There was a proposed $8m recapitalisation of the company in 2017.

The company was subsequently put into liquidation proceedings following attempts by a business practitioner to save it from failure. The company was in and out of court throughout this period with claims of corruption involving contractors.

In 2019, Bristow completed the merger of his Randgold Resources with Barrick Gold, a fabulously successful transaction which as coincided with high gold prices.

Source: DCLA

Bristow to finally put Rockwell Diamonds saga to bed after firm unveils wind-up plan

 

MARK Bristow, CEO of Barrick Gold Corporation, is to finally close the book on Rockwell Diamonds, a company he chaired and which he once attempted to save from bankruptcy.

Rockwell Diamonds announced today the Canadian listing authority had revoked a cease trade order which had been issued as the company had previously failed to produce quarterly numbers with the accompanying management discussion.

The company today filed third quarter numbers and announced its intention to wind up its affairs in which a company owned by Bristow, ‘Bristco’ would mop up the interests of minority shareholders in Rockwell and put them into ‘Amalco’.

Dissenting shareholders would have their interests exchanged on a one-for-one basis for redeemable preference shares of Amalco.

The redeemable preference shares would then be immediately redeemed by Amalco in exchange for half a Canadian cent per share, payable in cash. A meeting of shareholders requiring a simple majority has been arranged for March 2.

Bristow first sought to bail out Rockwell Diamonds, which was once run by his brother, John Bristow, in 2014, in which Mark Bristow bought $1.1m in debentures. In 2016, Bristow embarked on a process of ‘fumigation’ in which he restructured the firm’s board and conducted an overview of its operating activities.

Unfortunately, the company never managed to gain traction at its key asset, the 200,000 cubic metres a month Wouterspan, situated in the alluvial diamond fields region of the Northern Cape province.

There was a proposed $8m recapitalisation of the company in 2017.

The company was subsequently put into liquidation proceedings following attempts by a business practitioner to save it from failure. The company was in and out of court throughout this period with claims of corruption involving contractors.

In 2019, Bristow completed the merger of his Randgold Resources with Barrick Gold, a fabulously successful transaction which as coincided with high gold prices.

Source: DCLA

 

De Beers and Alrosa Raise Rough Prices

The two largest diamond miners increased prices at this week’s rough sales as demand improved due to post-holiday restocking and strong trading ahead of the Chinese New Year.

De Beers raised prices by an average of 4% to 5% at its first sight of 2021, while Alrosa’s increases were around 6% to 7%, industry insiders told Rapaport News Monday. Both companies implemented steeper hikes in larger categories than for smaller goods, sources said.

“Alrosa makes sure that prices reflect the actual market trends and a confirmed real demand,” a spokesperson for the Russian miner said. De Beers declined to comment.

The miners have steadily been reversing the prices cuts they made in the second half of last year. De Beers’ price rise was its second in a row, with January prices almost back to pre-pandemic levels, sightholders noted.

The rough market showed momentum in January following a better 2020 holiday season than many had feared earlier in the year. Cutting factories in India raised polished production to full capacity as shortages emerged and retailers restocked, prompting manufacturers to buy rough in large quantities.

Demand rose on the secondary market, with De Beers clients able to make profits of 5% to 7% by reselling goods ahead of the sight. Those premiums declined slightly following the price increase.

“[Polished] inventory levels are the lowest for at least the past seven or eight years,” an executive at a sightholder said. “That’s the reason people are going to be more aggressive in their purchasing,” he continued, adding that some traders foresaw a spike in consumer demand due to government stimulus packages.

Prices at smaller miners’ tenders were higher still — in contrast to mid-2020, when manufacturers could get goods up to 25% cheaper on the open market compared with De Beers and Alrosa boxes. Tender prices fluctuate with the market conditions more than contract-sale prices do, as the smaller rough producers have greater liquidity needs.

Some traders expressed concern that the surge in rough purchases could lead to an oversupply, as Chinese retailers have almost finished preparing their inventories for the upcoming lunar festival on February 12.

“It’s time to go back to business, but it’s no time to push your production to the max and buy rough at any price with the excuse that your factory needs it,” another sightholder argued. “The end of year has been OK, including in the States. There are great expectations for a fantastic Chinese New Year, but the reality is that any Chinese retailer has stopped buying as from this week.”

Amid the uncertainty, Alrosa kept its policy of allowing customers to defer 100% of their allocations in January, noting that it wished to uphold the balance between supply and demand.

De Beers also allowed sightholders to refuse a proportion of their allocations for goods up to around 0.75 carats, while maintaining its standard flexibility — including 10% buybacks — in larger categories.

De Beers’ sight began on Monday in Botswana and runs until Friday, with viewings also taking place in Antwerp and Dubai. Alrosa’s sale started last Friday and continues for a week.

Source: DCLA

 

De Beers and Alrosa Raise Rough Prices

The two largest diamond miners increased prices at this week’s rough sales as demand improved due to post-holiday restocking and strong trading ahead of the Chinese New Year.

De Beers raised prices by an average of 4% to 5% at its first sight of 2021, while Alrosa’s increases were around 6% to 7%, industry insiders told Rapaport News Monday. Both companies implemented steeper hikes in larger categories than for smaller goods, sources said.

“Alrosa makes sure that prices reflect the actual market trends and a confirmed real demand,” a spokesperson for the Russian miner said. De Beers declined to comment.

The miners have steadily been reversing the prices cuts they made in the second half of last year. De Beers’ price rise was its second in a row, with January prices almost back to pre-pandemic levels, sightholders noted.

The rough market showed momentum in January following a better 2020 holiday season than many had feared earlier in the year. Cutting factories in India raised polished production to full capacity as shortages emerged and retailers restocked, prompting manufacturers to buy rough in large quantities.

Demand rose on the secondary market, with De Beers clients able to make profits of 5% to 7% by reselling goods ahead of the sight. Those premiums declined slightly following the price increase.

“[Polished] inventory levels are the lowest for at least the past seven or eight years,” an executive at a sightholder said. “That’s the reason people are going to be more aggressive in their purchasing,” he continued, adding that some traders foresaw a spike in consumer demand due to government stimulus packages.

Prices at smaller miners’ tenders were higher still — in contrast to mid-2020, when manufacturers could get goods up to 25% cheaper on the open market compared with De Beers and Alrosa boxes. Tender prices fluctuate with the market conditions more than contract-sale prices do, as the smaller rough producers have greater liquidity needs.

Some traders expressed concern that the surge in rough purchases could lead to an oversupply, as Chinese retailers have almost finished preparing their inventories for the upcoming lunar festival on February 12.

“It’s time to go back to business, but it’s no time to push your production to the max and buy rough at any price with the excuse that your factory needs it,” another sightholder argued. “The end of year has been OK, including in the States. There are great expectations for a fantastic Chinese New Year, but the reality is that any Chinese retailer has stopped buying as from this week.”

Amid the uncertainty, Alrosa kept its policy of allowing customers to defer 100% of their allocations in January, noting that it wished to uphold the balance between supply and demand.

De Beers also allowed sightholders to refuse a proportion of their allocations for goods up to around 0.75 carats, while maintaining its standard flexibility — including 10% buybacks — in larger categories.

De Beers’ sight began on Monday in Botswana and runs until Friday, with viewings also taking place in Antwerp and Dubai. Alrosa’s sale started last Friday and continues for a week.

Source: DCLA

Lucapa’s run of recovering +100 carat diamonds continues

 

Lucapa Diamond Company and its partners have announced the recovery of the 18th +100 carat white diamond by Sociedade Mineria Do Lulo (SML) from its Lulo alluvial mine in Angola.

The recovery of this second +100 carat diamond from Mining Block 46 (MB46), a 104 carat D colour white stone, so soon after the 113 carat D colour white stone, indicates the potential for these blocks as the company moves deeper into the southern terraces.

Source: DCLA

Lucapa’s run of recovering +100 carat diamonds continues

 

Lucapa Diamond Company and its partners have announced the recovery of the 18th +100 carat white diamond by Sociedade Mineria Do Lulo (SML) from its Lulo alluvial mine in Angola.

The recovery of this second +100 carat diamond from Mining Block 46 (MB46), a 104 carat D colour white stone, so soon after the 113 carat D colour white stone, indicates the potential for these blocks as the company moves deeper into the southern terraces.

Source: DCLA

Lucara recovers 341 carat white diamond

 

Canada’s Lucara Diamond has found an unbroken 341-carat white gem-quality rock at its prolific Karowe mine in Botswana, with analysts estimating it could fetch more than $10 million.

The Vancouver based miner said the diamond was recovered over the Christmas period from milling of ore coming from the south western quadrant of Karowe’s South Lobe.

The diamond is the 54th stone over 200 carats recovered at Karowe since it began commercial operations in 2012.

The find builds on previous historic recoveries which include the 342-carat Queen of the Kalahari, the 549 carat Sethunya, the 1,109 carat Lesedi La Rona found in 2015, and the 1758 carat Sewelô, recovered in 2019.

Beyond Sewelô, the only larger diamond ever unearthed is the 3,106 carat Cullinan Diamond, discovered in South Africa in 1905. The Cullinan was later cut into smaller stones, some of which now form part of British royal family’s crown jewels.

Source: DCLA