G7 bans Russian diamonds from January in show of solidarity to Zelensky

The Group of Seven (G7) nations will ban direct imports of Russian diamonds starting next year as a punitive measure against Moscow’s invasion of Ukraine.

There will be phased-in restrictions on indirect imports of Russian gems from March, a joint statement on Wednesday after the G7 nations’ meeting said. The measures were announced as Joe Biden and leaders of the G7 countries met Volodymyr Zelensky virtually in a show of solidarity.

The new measures will ensure a ban on non-industrial diamonds from Russia by 1 January and on third-party nations which sell Russian diamonds from March.

The move was being mulled as a part of fresh sanctions by the European Union last month. The G7 will phase in restrictions on indirect imports from a targeted date of March and introduce a “robust traceability-based verification and certification” mechanism for rough diamonds within the G7 by 1 September 2024. The ban excludes diamonds for industrial use.

Russia is the biggest producer of rough diamonds, which are taken from swathes of mines beneath the Siberian permafrost. The trade of precious rock has helped Russia stop from bleeding under economic sanctions after the invasion of Ukraine in February last year.

Source: DCLA

133 Carat Yellow Diamond Fetches $5.5 Million At Sotheby’s Auction

A 133.03 carat Fancy Vivid Yellow diamond achieved a sale price of more than $5.5 million, becoming the largest fancy vivid yellow diamond to sell at auction.

This was the top lot at Sotheby’s December 5 Magnificent Jewels auction in New York. The unmounted cushion modified brilliant-cut gem with VS2 clarity surpassed its high estimate of $5 million.

The diamond was purchased by Diacore, a diamond manufacturer best known for crafting rare, exceptional diamonds and high-end jewelry.

The company also has a joint partnership with Sotheby’s called “Sotheby’s Diamonds,” in which they manufacture and market diamonds specifically for private sale at Sotheby’s locations in London, New York and Hong Kong.

Source: DCLA

Signet Sales Decline in Weak US Market

Signet Jewelers’ sales fell in its third fiscal quarter as the US economy weakened and engagement-ring demand underwent an expected downswing.

Revenue decreased 12% year on year to $1.39 billion for the three months that ended October 28, the retailer reported Tuesday. Same-store sales those at branches open for at least a year were also down 12%, while net profit slid 69% to $11.7 million.

“These declines were driven by the impact of heightened inflationary pressure on consumers’ discretionary spending and the decline in the bridal category, driven by lower engagements,” the jeweler said in a filing with the US Securities and Exchange Commission.

Sales dropped at all of the company’s store chains, the largest of which are Kay Jewelers, Zales and Jared. Overall bridal revenue slumped 15% to $664.6 million, while sales of fashion jewelry dipped 12% to $448.2 million. Signet’s services division including jewelry rental and repairs offset the declines with a 5% increase for a total of $169.9 million.

The results were in line with Signet’s expectations: The company had forecast sales of $1.36 billion to $1.41 billion for the period and projected that engagement-ring sales would only start recovering in the fourth fiscal quarter, which began October 29. A lull in dating during Covid-19 manifested as a drop in proposals this year, management had explained in the past.

The jeweler barely changed its sales outlook for the full year, predicting revenue of $7.07 billion to $7.27 billion down only slightly from an earlier projection of $7.1 billion to $7.3 billion.

Bridal demand rallied in November as anticipated. Still, sales in the fourth fiscal quarter, which includes most of the holiday shopping season, will likely range from $2.4 billion to $2.6 billion, the company said a decline of up to 10% from last year’s $2.67 billion.

“Trends through Black Friday weekend, including sequential improvement in engagement trends, are performing in line with guidance expectations for the fourth quarter,” said Signet CEO Virginia Drosos. “As we enter the holiday season, jewelry remains a top-of-mind gifting category for consumers in a value-conscious shopping environment.”

Total sales for the jeweler’s first three fiscal quarters fell 10% year on year to $4.67 billion. Net profit for the nine-month period, which ended October 28, rose 85% to $184.2 million because of charges in the previous year relating to litigation and a pension settlement.

Source: DCLA

Rio Tinto Delighted with Argyle and Diavik Tender

Rio Tinto said it was delighted with the results of its first Beyond Rare Tender of polished pink and red diamonds from Argyle, in Australia, and yellow stones from Diavik, Canada, though it declined to reveal any prices.

Sinead Kaufman, chief executive of Rio Tinto Minerals, said only that the results reflected the global demand for highly collectible natural colored diamonds.

The first in a series of sales featured a collection of 87 diamonds, weighing 29.96 carats in total. Successful bidders came from Australia, Europe, Japan, Hong Kong, Singapore, US and Israel.

Among the lots were seven Masterpiece sets of Argyle dink diamonds and yellow Diavik diamonds, 11 matched pairs of colored diamonds and 30 single diamonds, including one remarkable fancy red Argyle diamonds.

The iconic Argyle mine closed in November 2020 after 37 years. It produced 90 per cent of the world’s pink, red, blue and violet diamonds.

Source: DCLA

Christie's sells rare blue diamond for over $40m USD

The 17.61 carat, pear-shaped Bleu Royal diamond, set in a ring, fetched $43.8 million, they said.

It is the “largest internally flawless fancy vivid blue gem” ever to appear for sale in auction history, Christie’s said.

Part of a private collection for 50 years, it was the first time the Bleu Royal was sold at an auction.

“This diamond is amongst the rarest to have been unearthed,” the auction house said in a statement.

Christie’s said only three fancy vivid blue diamonds over 10 carats had appeared for sale in its 250-year auction history, in 2010, 2014 and 2016.

Source: DCLA

Hong Kong Luxury Sales See Further Revival

Hong Kong retail sales rose in October as tourism to the municipality continued to improve and the government implemented initiatives to stimulate the economy.

Revenue from jewelry, watches, clocks and valuable gifts climbed 27% year on year to HKD 5.1 billion ($653.1 million) for the month, according to data the government’s Census and Statistics Department released Thursday. Retail sales across all product categories increased 6% to HKD 33.77 billion ($4.32 billion).

The growth also reflected a favorable comparison with the same period last year, when the municipality was still operating under strict Covid-19 restrictions, leading to extremely low tourism. Hong Kong derives a large portion of its luxury revenue from tourists — primarily from China — who come to purchase goods. The border between Hong Kong and the mainland reopened at the beginning of the year.

For the first 10 months, proceeds from jewelry, watches, clocks and valuable gifts surged 55% to HKD 50 billion ($6.4 billion). Total retail sales for the period grew 17% to HKD 336.06 billion ($43.03 billion).

In October, 3.5 million visitors arrived in Hong Kong, compared to 80,524 during the same month of 2022. Of those, 2.7 million were from the mainland, versus 47,607 the year before.

“The value of total retail sales increased further in October over a year earlier alongside the continued revival of inbound tourism,” a government spokesperson said. “Further recovery of visitor arrivals should benefit the retail sector. Continued improvement in household income and various activities that bolster the economy, including the ‘Night Vibes Hong Kong’ [events], should also provide support. Yet factors such as tight financial conditions and economic uncertainties could weigh on consumption sentiment.”

Source: DCLA

Rio Tinto sells stake in Canadian diamond project, ups interest in copper

Rio Tinto is reshuffling its interests in two Canadian projects as the global miner seeks to focus on assets considered key for the world’s transition to a green economy, such as copper and lithium.

The company has decided to sell its 75% interest in the Fort à la Corne diamond project in central Saskatchewan to joint venture partner Star Diamond Corp. in exchange for shares in the junior.

As a result, Rio Tinto Exploration Canada will own a 19.9% stake in the exploration and development company.

Rio Tinto’s head of exploration Dave Andrews said the company was now “firmly focused” on identifying opportunities in metals and minerals that support the energy transition.

“We are grateful to Rio Tinto for the significant monetary investment and expertise it has contributed to the project over the past more than five years, which has meaningfully advanced what Star Diamond believes is one of the most promising diamond projects in the world,” president and CEO Ewan Mason said in a statement.

Rio Tinto’s move follows years of tension between the partners over the terms of their development agreement. The situation saw both companies face off in court and, at one point Star Diamond considered cutting RTEC out of the project.

The partners reached an agreement on the subject in December 2021, after which RTEC put the project on hold until it could determine whether it wanted to continue or exit the venture. The camp was demobilized, and the project put on care and maintenance in the first quarter of 2023.

Copper and lithium
Rio Tinto has also moved to increase its stake in Canada’s Western Copper and Gold Corporation (TSX: WRN), which is advancing the Casino project in the Yukon Territory.

Under the deal, RTEC is acquiring 3,468,208 common shares at a price of C$1.73 per share, or about C$6 million ($4.4m) total. This increases Rio Tinto’s ownership to 9.7% of Western’s outstanding common shares.

Vancouver-based Western Copper and Gold, which remains the sole owner of the Casino project, said it would use the proceeds of this fresh investment to fund specific areas of study with the aim of progressing through permitting to a development phase of the proposed mine.

“We are pleased that Rio Tinto has elected to continue to invest and work with Western to advance the Casino project, with a focus on furthering infrastructure development and streamlining the regulatory process,” CEO Paul West-Sells said in the statement.

Rio Tinto chief executive officer Jakob Stausholm recently said in an interview that the company continued to look for ways to increase exposure to key minerals and metals, particularly copper and lithium.

Source: DCLA