De Beers Posts First Loss Since 2009

 

De Beers recorded its first annual loss since the aftermath of the global financial crisis as rough sales and prices slumped during the Covid-19 pandemic.

The miner’s underlying loss came to $102 million in 2020, compared with a profit of $45 million in 2019, parent company Anglo American reported Thursday. De Beers had not been in the red since 2009, according to Rapaport records.

“The onset of the Covid-19 pandemic, and measures taken by governments in response, had a profound impact on global diamond supply and demand,” the group explained. “Much of the industry was temporarily unable to operate, with up to 90% of jewelry stores closed at the peak of lockdowns, first in China, then in Europe and the US.”

Revenue slid 27% to $3.38 billion last year as the coronavirus closed stores, froze the Indian manufacturing sector, and prompted De Beers to offer sightholders unprecedented purchase flexibility. Rough sales volume fell 27% to 21.4 million carats.

The company’s rough price index, which tracks prices on a like-for-like basis, dropped 10%, reflecting reductions De Beers made from the August sight onward. The average realized price slipped 3% to $133 per carat as the miner sold a larger proportion of higher-value rough than in 2019, with both midstream and inventory mix influencing this trend.

Underlying earnings before interest, taxes, depreciation and amortization (EBITDA) fell 25% to $417 million as a result. A depreciation and amortization charge of $417 million, as well as finance costs, pushed the company out of the black.

However, an easing of restrictions and better trading conditions led to a partial recovery in the second half, with China showing an especially strong rebound and US demand “encouraging,” De Beers added.

“Recent consumer demand trends have been positive in key markets, and industry inventories are in a healthier position, providing the potential for a continued recovery in rough-diamond demand during 2021,” the company noted. Covid-19 could still affect this optimism, it cautioned.

Source: DCLA

De Beers Posts First Loss Since 2009

 

De Beers recorded its first annual loss since the aftermath of the global financial crisis as rough sales and prices slumped during the Covid-19 pandemic.

The miner’s underlying loss came to $102 million in 2020, compared with a profit of $45 million in 2019, parent company Anglo American reported Thursday. De Beers had not been in the red since 2009, according to Rapaport records.

“The onset of the Covid-19 pandemic, and measures taken by governments in response, had a profound impact on global diamond supply and demand,” the group explained. “Much of the industry was temporarily unable to operate, with up to 90% of jewelry stores closed at the peak of lockdowns, first in China, then in Europe and the US.”

Revenue slid 27% to $3.38 billion last year as the coronavirus closed stores, froze the Indian manufacturing sector, and prompted De Beers to offer sightholders unprecedented purchase flexibility. Rough sales volume fell 27% to 21.4 million carats.

The company’s rough price index, which tracks prices on a like-for-like basis, dropped 10%, reflecting reductions De Beers made from the August sight onward. The average realized price slipped 3% to $133 per carat as the miner sold a larger proportion of higher-value rough than in 2019, with both midstream and inventory mix influencing this trend.

Underlying earnings before interest, taxes, depreciation and amortization (EBITDA) fell 25% to $417 million as a result. A depreciation and amortization charge of $417 million, as well as finance costs, pushed the company out of the black.

However, an easing of restrictions and better trading conditions led to a partial recovery in the second half, with China showing an especially strong rebound and US demand “encouraging,” De Beers added.

“Recent consumer demand trends have been positive in key markets, and industry inventories are in a healthier position, providing the potential for a continued recovery in rough-diamond demand during 2021,” the company noted. Covid-19 could still affect this optimism, it cautioned.

Source: DCLA

Lucapa finds massive white diamond at Mothae

 

Lucapa Diamond Company has recovered a 215-carat diamond from the Mothae kimberlite mine in Lesotho, Africa.

The discovery is the largest Type IIa D-colour white diamond recovered through the 1.1 million tonnes a year Mothae plant since mining operations commenced in January 2019.

The stone is also the second 200-carat-plus and fifth 100-carat-plus diamond recovered through the plant.

Lucapa managing director Stephen Wetherall said the continued recovery of large diamonds at Mothae validated its recent investment decision to expand capacity at the mine.

The company plans to expand Mothae’s processing capacity by around 45 per cent to 1.6 million tonnes a year.

This is scheduled for completion in the first quarter of 2021.

“Lucapa has now produced 23 (100-carat-plus) diamonds, four of which are greater than 200 carats (across the two mines) and we, together with the (Government of the Kingdom of Lesotho) as mine partner in Lesotho and Endiama and Rosas & Petalas as mine partners in Angola, look forward to many more such exceptional mining recoveries,” Wetherall said.

The Lesotho Government holds a 30 per cent stake in the Mothae mine, with Lucapa holding the remaining 70 per cent.

Source: DCLA

Lucapa finds massive white diamond at Mothae

 

Lucapa Diamond Company has recovered a 215-carat diamond from the Mothae kimberlite mine in Lesotho, Africa.

The discovery is the largest Type IIa D-colour white diamond recovered through the 1.1 million tonnes a year Mothae plant since mining operations commenced in January 2019.

The stone is also the second 200-carat-plus and fifth 100-carat-plus diamond recovered through the plant.

Lucapa managing director Stephen Wetherall said the continued recovery of large diamonds at Mothae validated its recent investment decision to expand capacity at the mine.

The company plans to expand Mothae’s processing capacity by around 45 per cent to 1.6 million tonnes a year.

This is scheduled for completion in the first quarter of 2021.

“Lucapa has now produced 23 (100-carat-plus) diamonds, four of which are greater than 200 carats (across the two mines) and we, together with the (Government of the Kingdom of Lesotho) as mine partner in Lesotho and Endiama and Rosas & Petalas as mine partners in Angola, look forward to many more such exceptional mining recoveries,” Wetherall said.

The Lesotho Government holds a 30 per cent stake in the Mothae mine, with Lucapa holding the remaining 70 per cent.

Source: DCLA

Diamonds with Fake Inscriptions Turn Up at GIA

 

The Gemological Institute of America (GIA) has recently received “a number of” lab-grown or treated stones carrying natural-diamond reports and fake inscriptions, the organization warned.

Clients submitted the stones for updated reports or verification services, but the grading documents that came with the goods did not match the stones, the GIA explained Tuesday. The weights and grading scores of the lab-grown and treated diamonds were close but not identical to the original stones that appeared on the reports, and they all featured the corresponding natural-diamond report numbers in the form of counterfeit girdle inscriptions.

In one example, a stone submitted was a 1.51212-carat, D-color, VVS2-clarity, type IIa, lab-grown diamond with a cut grade of “very good.” However, the accompanying report — for which the client was seeking an update — was for a 1.50362-carat, VVS2, E, type I natural diamond with “excellent” cut.

In line with its policy, the GIA overwrote all the fraudulent inscriptions with X’s to obscure them, it added. The organization also issued new reports with the accurate details, and engraved the correct report number onto the girdle, and, where relevant, the phrase “laboratory-grown.” In these cases, it also considers informing the client that submitted the stone, law enforcement, and the public, the GIA noted.

Last month, the institute revealed that it had spotted three synthetic moissanites that clients had submitted with forged girdle inscriptions that disguised them as natural diamonds. The cases at its Johannesburg laboratory were the first times the GIA had discovered fake inscriptions on diamond simulants.

Source: DCLA

Diamonds with Fake Inscriptions Turn Up at GIA

 

The Gemological Institute of America (GIA) has recently received “a number of” lab-grown or treated stones carrying natural-diamond reports and fake inscriptions, the organization warned.

Clients submitted the stones for updated reports or verification services, but the grading documents that came with the goods did not match the stones, the GIA explained Tuesday. The weights and grading scores of the lab-grown and treated diamonds were close but not identical to the original stones that appeared on the reports, and they all featured the corresponding natural-diamond report numbers in the form of counterfeit girdle inscriptions.

In one example, a stone submitted was a 1.51212-carat, D-color, VVS2-clarity, type IIa, lab-grown diamond with a cut grade of “very good.” However, the accompanying report — for which the client was seeking an update — was for a 1.50362-carat, VVS2, E, type I natural diamond with “excellent” cut.

In line with its policy, the GIA overwrote all the fraudulent inscriptions with X’s to obscure them, it added. The organization also issued new reports with the accurate details, and engraved the correct report number onto the girdle, and, where relevant, the phrase “laboratory-grown.” In these cases, it also considers informing the client that submitted the stone, law enforcement, and the public, the GIA noted.

Last month, the institute revealed that it had spotted three synthetic moissanites that clients had submitted with forged girdle inscriptions that disguised them as natural diamonds. The cases at its Johannesburg laboratory were the first times the GIA had discovered fake inscriptions on diamond simulants.

Source: DCLA

Swiss Watch Trade Sees 12th Month of Decline

 

Swiss watch exports fell 11% year on year to CHF 1.59 billion ($1.78 billion) in January, the 12th consecutive monthly drop, as demand slowed in the US and in key Asian markets.

Shipments to the US declined 11% to CHF 183.3 million ($204.5 million), partly because strong figures in January 2020 created an unfavorable comparison, the Federation of the Swiss Watch Industry said Thursday.

Supply to Hong Kong dipped 9% to CHF 169.3 million ($188.9 million) last month as market conditions deteriorated, while exports to the UK and Japan slumped due to the tightening of Covid-19 measures, it added. January also had one fewer business day than the same period a year earlier.

The negative figures outweighed a 58% jump in orders from China, for a total of CHF 255 million ($284.5 million), mirroring a continued recovery of the retail sector on the mainland.

Globally, cheaper watches saw a sharper downturn, with shipments of timepieces priced under CHF 200 ($223) sliding 31% by value. Exports of watches with wholesale prices ranging from CHF 200 to CHF 500 ($558) decreased 26%, while goods valued between CHF 500 and CHF 3,000 ($3,347) suffered a decline of 25%. Shipments of items above that price level slipped 4.1%.

The numbers point to a worsening of the situation versus December, when the global decline was the mildest since the start of the pandemic as Chinese demand rose. The trade hasn’t witnessed a year-on-year increase since January 2020.

“The result for the month will nonetheless have only a limited effect on the upward trend seen since last summer, and a return to significant growth is expected over the next few months,” the federation noted.

Source: DCLA