Low Diamond Demand, Struggling Chinese Economy Dent TSL

Hong Kong-based jeweler Tse Sui Luen (TSL) reported a loss in the first fiscal half amid economic challenges in China and dwindling demand for diamond jewelry.

The company’s net loss came to HKD 58.3 million ($7.5 million) for the six months that ended September 30, compared with a profit of HKD 1.8 million ($230,000) a year ago, TSL said last week. Sales for the period rose 8% to HKD 1.35 billion ($172.8 million).

Revenue in mainland China, TSL’s biggest market, decreased 3.2% to HKD 870.6 million ($111.7 million) as consumers tightened their budgets in light of the challenging economy. The company also sold more gold products as diamond demand dropped.

“Affected by international economic concerns and China’s property sector challenges, consumers are more conservative in their spending,” the company stated. “The Chinese government has rolled out measures to bolster consumer confidence and speed up economic recovery, which has led to some improvement in retail sales. Riding on the uptrend of pure gold demand, the group has focused more on [that] business to partially compensate for the loss of sales caused by the sharp decline in diamond demand.”

In Hong Kong and Macau, sales surged 41% to HKD 407.5 million ($52.3 million) as the municipality saw a steady rebound in tourism following the reopening of its border with mainland China. The company also benefited from the Hong Kong government’s distribution of new stimulus vouchers, as well as large-scale campaigns to stimulate the economy.

“These government initiatives helped the group to achieve a notable increase in the turnover of its Hong Kong and Macau retail business,” Tse Sui Luen added.

Source: DCLA

Yellow Diamond Ring to Lead Bonhams Sale

A 10.19-carat yellow diamond ring will lead an upcoming auction at Bonhams in London, where it is set to fetch up to GBP 160,000 (approximately $199,300).

Bonhams will offer the radiant-cut, fancy-intense-yellow, VS1-clarity stone, set between shield-cut diamond shoulders, at its December 7 London Jewels auction, it said Tuesday.

Two additional yellow diamonds for sale include a brilliant-cut, 10.02-carat, fancy-yellow diamond single-stone ring and a step-cut, 8.45-carat, fancy-yellow diamond ring accented by four pear-shaped diamonds set between baguette and step-cut diamond shoulders. Both pieces carry estimates of GBP 50,000 to GBP 70,000 (approximately $62,300 to $87,200).

The 149-lot auction will also feature pieces from multiple single-owner private collections, spanning from 1870 to the modern day. These comprise jewels from Cartier, Bulgari, Graff, Moussaieff, Van Cleef & Arpels, Harry Winston, Boucheron, Tiffany & Co., David Webb, and Grima.

Highlights from a single-owner private European collection are a Lalique Art Nouveau enamel, pâte-de-verre, sapphire and diamond pendant from around 1905 to 1915; a Cartier Panthère coral, emerald, onyx and diamond brooch, circa 1968; and a Cartier ruby and diamond clip and ear clip suite brooch combination that dates to about 1960.

Another collection, from a descendant of Dorothy Maud, Countess Haig, boasts a pearl and diamond tiara necklace presented to the countess by Queen Alexandra in 1905 on her marriage to General Haig.

Source: DCLA

Stornoway for Sale Again Following Significant Losses

Stornoway Diamonds is seeking a buyer after the weak market forced the miner to enter insolvency for the second time in just over four years.

Deloitte Corporate Finance is conducting the sale and investment solicitation process (SISP) for the Stornoway’s entire business, property and assets, the professional services firm said Tuesday. The miner, which operates the Renard deposit in Canada, has insufficient liquidity to operate and is in “a precarious financial situation,” Deloitte explained in a filing at the Superior Court of Quebec.

Stornoway reported a net loss of CAD 13.1 million ($9.6 million) for the nine months that ended September 30, according to the court documents. That compares to a profit of CAD 42.2 million ($30.7 million) for the full year of 2022.

“[India’s] unilateral ongoing import freeze and ongoing downward pressure on price[s] since March 2023…have resulted in a dramatic loss of revenue for Stornoway, and [have] seriously impaired Stornoway’s ability to sell its inventory at acceptable and profitable market prices,” the filing stated.

Prices for the company’s rough have been progressively decreasing throughout the year, Stornoway noted. From a total of six sales held since January, the miner has seen prices fall from $118 per carat to $82 per carat.

“Management estimates that Stornoway’s working capital is not sufficient to allow it to meet its financial obligations, commitments and necessary budgeted expenditures for the foreseeable future,” the filing said.

Last month, Stornoway halted operations at Renard, laid off 425 of its 500 employees, and filed for creditor protection as it sought to weather the slowdown.

This is not the first time Stornoway has faced liquidity issues. In 2019, the miner was forced to sell the business to its major lenders after accumulating debt it attributed to “continued downward pressure” on the rough market.

Stornoway currently lists assets of about CAD 287.3 million ($209.6 million) from inventory, property and plant equipment, cash and other sources.

Source: DCLA

Pink Diamond Ring Headlines Heritage Sale

A 3.06-carat pink diamond ring will be the star of an upcoming jewelry sale at Heritage Auctions, where it is set to fetch as much as $300,000.

The modified marquise-shaped, fancy-pink stone, surrounded by 0.55 carats of full-cut diamonds, will lead the December 4 Holiday Fine Jewelry Signature Auction in Dallas, Texas, Heritage said Monday.

Other standout items include pieces by Cartier, Van Cleef & Arpels, and Tiffany & Co., and diamond earrings created in 1950 by Parisian jeweler Jean Schlumberger. One of the more interesting lots is an enamel and 18-karat gold helicopter by Pierno Frascarolo & Co.

Here are some of the other top items:

A ring by designer David Webb features a pear-shaped, 18.65-carat Ceylon purple sapphire, 9.35 carats of full-cut diamonds and a turquoise cabochon, estimated at up to $80,000.

An emerald-cut, 4.62-carat, H-color, VS1-clarity diamond ring is expected to fetch up to $75,000 at the auction.

This ring is set with a cut-cornered rectangular-cut, 5.57-carat, fancy-intense-yellow, VS1-clarity diamond center stone, flanked by tapered bullet-shaped white diamonds and rectangular-shaped emeralds. It carries a presale price range of $50,000 to $75,000.

Heritage will offer this cushion-shaped, 19.51-carat sapphire and diamond ring for $50,000 to $70,000.

Source: Rapnet

Diamond certification head questions G7 plans to ban Russian producers

Ahmed bin Sulayem, who this week was elected to take charge of the Kimberley Process, a multilateral body tasked with cleaning up the diamond trade, said any proposed scheme “must take into account African diamond producing nations” such as Botswana, the Democratic Republic of Congo and South Africa.

But the Emirati warned that a Belgian proposal to put restrictions on the international trade of diamonds, which the G7 is considering adopting, “falls well short of this important goal”.

The EU’s chief diplomat Josep Borrell last week said the bloc was set to move ahead with a ban on Russian diamonds after securing sufficient backing from the G7 group of developed nations.

The diamond dispute is only the latest rift between Europe and African capitals. A ministerial meeting set for next week has been postponed after officials decided there was little chance that the two sides would agree on a joint communiqué containing language regarding Israel’s war against Hamas and Russia’s war in Ukraine, according to three people briefed on the discussions.

Surce: DCLA

Pandora Raises Full-Year Forecast Amid ‘Healthy’ Sales

Pandora has lifted its outlook for the full year as third-quarter and early fourth-quarter sales remain strong amid the implementation of a new strategy and increased tourism.

The Danish jeweler now expects sales will rise 5% to 6% on an organic basis for 2023, compared with the 2% to 5% rise it had reported earlier in the year, it said last week. The earnings before interest and taxes (EBIT) is unchanged at around 25%.

“We are very pleased with our results this quarter,” said Pandora CEO Alexander Lacik. “Our investments in the brand are attracting more consumers into our stores. We have delivered strong broad-based growth.”

Current trading at the start of the fourth quarter is “healthy,” with like-for-like growth in the high-single-digit levels, Pandora noted.

The company’s sales increased 6% to DKK 5.57 billion ($812.1 million) in the three months ending September 30. Organic growth was 11%, while sales rose 9% on a like-for-like basis. The increase in sales was a result of the jeweler’s investment in further measures through its Phoenix program, a growth and brand transformation strategy it started in 2021. An unexpected pickup in both domestic spending and tourist purchases also drove sales. In addition, the company benefited from the expansion of its lab-grown diamond line, which increased 84% on a like-for-like basis, it said.

Pandora to Woo Gen Z-ers for Revenue Boost

Online sales grew 11% year on year in the third quarter, representing 16% of total revenue for the period. Profit slipped 26% to DKK 543 million ($78.9 million).

“Initiatives under Phoenix are on track and yielding positive results,” the company added. “Additionally, the brand has demonstrated its strength amid a weak macro in 2023. Pandora therefore enters the fourth quarter, the biggest quarter of the year, with confidence.”

Source: DCLA

Sparkling Orange-Yellow Diamond Earrings Could Fetch $12 Million At Christie’s Auction

A pair of fancy vivid orange-yellow diamond earrings weighing 12.20 and 11.96 carats will be the top lot at Christie’s Magnificent Jewels sale on December 6 in New York. The earrings, which are named “California Sunset Diamonds,” are estimated at $7 million – $12 million.

A ring with a similar fancy vivid yellowish orange diamond weighing 5.16 carats has an estimate of $1.5 million – $2 million.

A 5.16-carat fancy vivid yellowish orange diamond has an estimate of $1.5 million – $2 million CHRISTIE’S

There haven’t been many details released yet for Christie’s final jewelry auction of 2023, but the sale will include several fancy colored diamonds, white diamonds and colored gems. As always, there will be signed jewels from important collections.

Source: DCLA