Alrosa Rough Prices Hit Three-Year High

     Nyurbinsky open-pit mine in Yakutia, Russia

Alrosa’s rough-diamond prices have reached their highest level since late 2018, as scarcities have prevented the Russian miner from meeting strong demand.

The company’s rough-price index, which tracks like-for-like valuations, jumped 22% year on year in the third quarter and rose 10% versus the previous three months, it reported Friday.

While the diamond market’s recovery from the Covid-19 crisis eased during the period, sales were still well above 2020 figures. Total diamond revenue climbed 59% year on year to $938.1 million for the quarter, with rough sales gaining 63% to $903.8 million. The average selling price dropped 10% to $99 per carat.

“Jewelry demand is strong in all the key markets,” the company explained. “At the same time, rough-diamond stocks at miners are at minimal levels, as supply structurally dropped.”

The rough market began to recover in the third quarter of 2020 as consumer sentiment returned following the initial coronavirus-induced lockdowns. This led to a strong holiday season for retailers and a buoyant restocking period in the first quarter of 2021, leaving miners with minimal inventory from the second quarter onward.

This lower availability of goods contributed to a decline in sales in the third quarter relative to the second quarter, the miner pointed out.

The price index has advanced 25% since the beginning of the year, hitting a level the company last saw in the fourth quarter of 2018. Its stockpiles increased slightly to 8.6 million carats in the third quarter — up from an almost unprecedented low of 8.4 million carats in the second quarter — but were still down 72% year on year.

This also reflected a 5% year-on-year drop in production to 8.8 million carats. Although sales volume exceeded this, rising 83% to 9.2 million carats, inventories still grew because Alrosa was able to sell some 696,500 carats that it bought from Russian state gem depository Gokhran.

Meanwhile, sales from the miner’s polished-diamond division slipped 4% to $34.3 million.

In the first nine months of 2021, total diamond sales more than doubled to $3.27 billion versus $1.58 billion in the same period of 2020, reflecting the global market rebound. Rough revenues came to $3.13 billion, compared with $1.51 billion a year earlier.

Source: DCLA

Alrosa Rough Prices Hit Three-Year High

     Nyurbinsky open-pit mine in Yakutia, Russia

Alrosa’s rough-diamond prices have reached their highest level since late 2018, as scarcities have prevented the Russian miner from meeting strong demand.

The company’s rough-price index, which tracks like-for-like valuations, jumped 22% year on year in the third quarter and rose 10% versus the previous three months, it reported Friday.

While the diamond market’s recovery from the Covid-19 crisis eased during the period, sales were still well above 2020 figures. Total diamond revenue climbed 59% year on year to $938.1 million for the quarter, with rough sales gaining 63% to $903.8 million. The average selling price dropped 10% to $99 per carat.

“Jewelry demand is strong in all the key markets,” the company explained. “At the same time, rough-diamond stocks at miners are at minimal levels, as supply structurally dropped.”

The rough market began to recover in the third quarter of 2020 as consumer sentiment returned following the initial coronavirus-induced lockdowns. This led to a strong holiday season for retailers and a buoyant restocking period in the first quarter of 2021, leaving miners with minimal inventory from the second quarter onward.

This lower availability of goods contributed to a decline in sales in the third quarter relative to the second quarter, the miner pointed out.

The price index has advanced 25% since the beginning of the year, hitting a level the company last saw in the fourth quarter of 2018. Its stockpiles increased slightly to 8.6 million carats in the third quarter — up from an almost unprecedented low of 8.4 million carats in the second quarter — but were still down 72% year on year.

This also reflected a 5% year-on-year drop in production to 8.8 million carats. Although sales volume exceeded this, rising 83% to 9.2 million carats, inventories still grew because Alrosa was able to sell some 696,500 carats that it bought from Russian state gem depository Gokhran.

Meanwhile, sales from the miner’s polished-diamond division slipped 4% to $34.3 million.

In the first nine months of 2021, total diamond sales more than doubled to $3.27 billion versus $1.58 billion in the same period of 2020, reflecting the global market rebound. Rough revenues came to $3.13 billion, compared with $1.51 billion a year earlier.

Source: DCLA

Diamonds Direct to be acquired by retail giant Signet Jewelers for $490M

      Signet Jewelers agreed to buy Diamonds Direct

The world’s largest retailer of diamond jewelry plans to acquire Charlotte-based Diamonds Direct in a $490 million deal.

Signet Jewelers Ltd. (NYSE: SIG) said today that it has entered into an agreement to buy the local jewelry chain in an all-cash transaction. It would add to the Bermuda company’s portfolio of jewelry brands that already consists of Kay Jewelers, Zales, Jared, H. Samuel and Ernest Jones, among others. Signet operates about 2,800 stores altogether.

“The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time,” Signet CEO Virginia C. Drosos said in a press release.

Shares in the company were trading at $80.88 at 2:30 p.m. today, down about 1.4% from $82.05 at yesterday’s close.

Diamonds Direct is currently owned by private-equity firm Blackstone Group (NYSE: BX), which purchased the company in 2015 for an undisclosed amount.

Diamonds Direct was founded in 1995 in Charlotte. It now has 22 locations in 13 states, as well as an online presence. That includes its flagship store in SouthPark, at 4521 Sharon Road.

The Diamonds Direct leadership team, storefronts and branded offerings will remain in place following the acquisition, according to a company spokeswoman.

“Signet will retain the Diamonds Direct brand and our unique value proposition as a separate banner, and plans to position Diamonds Direct as a new and differentiated luxury offering among the Signet portfolio,” Kelsey Halford Diachenko said in an emailed statement to CBJ.

She added that Diamonds Direct is “really excited about the opportunities” it will have with Signet once the deal closes.

Itay Berger, current president of Diamonds Direct, will report directly to Drosos.

The jeweler has a buying office inside the world diamond exchange in Israel. That allows it to source directly from mines and diamond cutters around the globe, and handpick merchandise.

It offers loose and mounted diamonds, bridal jewelry, diamond and gemstone fashion jewelry, and designer jewelry from America’s top brands.

“As a result of this transaction, everything our customers know and love about Diamonds Direct will just be getting bigger and better,” Diachenko said. “While Signet will infuse their resources into our business to fuel our growth, the heart of who we are, how we operate and what we believe in will not change.”

The deal is expected to be completed in Signet’s fourth quarter of fiscal 2022, putting the anticipated closing date sometime between November and the first of February.

Source: DCLA

Diamonds Direct to be acquired by retail giant Signet Jewelers for $490M

      Signet Jewelers agreed to buy Diamonds Direct

The world’s largest retailer of diamond jewelry plans to acquire Charlotte-based Diamonds Direct in a $490 million deal.

Signet Jewelers Ltd. (NYSE: SIG) said today that it has entered into an agreement to buy the local jewelry chain in an all-cash transaction. It would add to the Bermuda company’s portfolio of jewelry brands that already consists of Kay Jewelers, Zales, Jared, H. Samuel and Ernest Jones, among others. Signet operates about 2,800 stores altogether.

“The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time,” Signet CEO Virginia C. Drosos said in a press release.

Shares in the company were trading at $80.88 at 2:30 p.m. today, down about 1.4% from $82.05 at yesterday’s close.

Diamonds Direct is currently owned by private-equity firm Blackstone Group (NYSE: BX), which purchased the company in 2015 for an undisclosed amount.

Diamonds Direct was founded in 1995 in Charlotte. It now has 22 locations in 13 states, as well as an online presence. That includes its flagship store in SouthPark, at 4521 Sharon Road.

The Diamonds Direct leadership team, storefronts and branded offerings will remain in place following the acquisition, according to a company spokeswoman.

“Signet will retain the Diamonds Direct brand and our unique value proposition as a separate banner, and plans to position Diamonds Direct as a new and differentiated luxury offering among the Signet portfolio,” Kelsey Halford Diachenko said in an emailed statement to CBJ.

She added that Diamonds Direct is “really excited about the opportunities” it will have with Signet once the deal closes.

Itay Berger, current president of Diamonds Direct, will report directly to Drosos.

The jeweler has a buying office inside the world diamond exchange in Israel. That allows it to source directly from mines and diamond cutters around the globe, and handpick merchandise.

It offers loose and mounted diamonds, bridal jewelry, diamond and gemstone fashion jewelry, and designer jewelry from America’s top brands.

“As a result of this transaction, everything our customers know and love about Diamonds Direct will just be getting bigger and better,” Diachenko said. “While Signet will infuse their resources into our business to fuel our growth, the heart of who we are, how we operate and what we believe in will not change.”

The deal is expected to be completed in Signet’s fourth quarter of fiscal 2022, putting the anticipated closing date sometime between November and the first of February.

Source: DCLA

De Beers Looking at Greenland’s Marine Diamonds

                              

De Beers has begun investigating Greenland’s potential as a source of high-value marine diamonds.

The miner commissioned a government agency to carry out a survey into diamond deposits, which are “known to be present” near the coast in the west of the Arctic island, according to an environmental assessment report by De Beers.

The Geological Survey of Denmark and Greenland (GEUS) — part of the Danish Ministry of Climate, Energy and Utilities — carried out the eight-day research in late September. GEUS set up and ran the survey, with De Beers requesting to extend it and participate in it, a spokesperson for the miner told Rapaport News Wednesday.

The purpose of the “small-scale, early-stage research” was to understand the region’s topography, he added, noting that it was unclear whether the location lent itself to concentrated sediments.

“De Beers Marine (DBM) would like to determine whether the offshore environment is conducive to the formation of secondary diamond deposits,” the environmental report said. “In order to do this, high-resolution geophysical data is required.”

Marine diamonds are generally of high quality, because only the best stones survive the impact of being washed around by water. De Beers currently mines marine diamonds off the coast of Namibia; the country’s 2020 rough production had a value of $465 per carat, one of the highest in the world, according to Kimberley Process data. The company is not carrying out similar surveys anywhere else, the spokesperson confirmed.

De Beers also operates land-based mining in Botswana, South Africa and Canada.

Source: DCLA

De Beers Looking at Greenland’s Marine Diamonds

                              

De Beers has begun investigating Greenland’s potential as a source of high-value marine diamonds.

The miner commissioned a government agency to carry out a survey into diamond deposits, which are “known to be present” near the coast in the west of the Arctic island, according to an environmental assessment report by De Beers.

The Geological Survey of Denmark and Greenland (GEUS) — part of the Danish Ministry of Climate, Energy and Utilities — carried out the eight-day research in late September. GEUS set up and ran the survey, with De Beers requesting to extend it and participate in it, a spokesperson for the miner told Rapaport News Wednesday.

The purpose of the “small-scale, early-stage research” was to understand the region’s topography, he added, noting that it was unclear whether the location lent itself to concentrated sediments.

“De Beers Marine (DBM) would like to determine whether the offshore environment is conducive to the formation of secondary diamond deposits,” the environmental report said. “In order to do this, high-resolution geophysical data is required.”

Marine diamonds are generally of high quality, because only the best stones survive the impact of being washed around by water. De Beers currently mines marine diamonds off the coast of Namibia; the country’s 2020 rough production had a value of $465 per carat, one of the highest in the world, according to Kimberley Process data. The company is not carrying out similar surveys anywhere else, the spokesperson confirmed.

De Beers also operates land-based mining in Botswana, South Africa and Canada.

Source: DCLA

Crater of Diamonds visitor finds 4.38-carat yellow diamond

4.38 carat rough yellow diamond

A California woman visiting the Crater of Diamonds State Park in Arkansas found a 4.38 carat yellow diamond after less than an hour of searching.

Arkansas State Parks said Noreen Wredberg of Granite Bay was visiting the park with her husband on Thursday and had been looking for gems in an open field for about 40 minutes when she spotted something shiny on the surface.

“I didn’t know it was a diamond then, but it was clean and shiny, so I picked it up,” Wredberg recalled.

Wredberg’s husband, Michael, took her find to the Diamond Discovery Center, where it was identified as a 4.38 carat yellow diamond.

“When I first saw this diamond under the microscope, I thought, ‘Wow, what a beautiful shape and color,'” Park Superintendent Caleb Howell said. “Mrs. Wredberg’s diamond weighs more than four carats and is about the size of a jellybean, with a pear shape and a lemonade yellow color.”

Officials said Wredberg’s discovery is the largest diamond found at the park since October 2020.

Wredberg said she hasn’t yet decided whether to have the diamond cut or to leave it as is.

“I don’t even know what it’s worth yet. It’s all new to me,” she said.

Source: DCLA