Sunday 10 December 2023

Anglo American to Cut De Beers’ Overheads by $100M

Anglo American to Cut De Beers’ Overheads by $100M

Roller machine used to separate and sort flat shaped and non- flat shaped rough diamonds. DTC Botswana, Gaborone, Botswana.

Anglo American will slash De Beers’ budgets in response to the diamond-market downturn, the parent company said Friday.

“At De Beers, we are taking a different approach as the business has performed very well operationally. What’s gone against us is the market,” Anglo CEO Duncan Wanblad said at the group’s annual investor update. “Demand and prices for diamonds have fallen as global GDP [gross domestic product] growth has fallen.”

The current downturn is likely temporary, and there are signs the market is “beginning to turn,” Wanblad added.

“Nonetheless, we are focused on streamlining De Beers, reducing the annual overheads by $100 million in a sustainable manner,” the executive continued. “We have also reduced capex [capital expenditure] for next year, with our investment focused on the highest-value opportunities we see in southern Africa from existing assets as well as on the exploration front.”

De Beers has incurred a loss in the second half of 2023 following sales of just $80 million at the October sight, Wanblad explained. Sightholders expected the recent December trading session to be a similar size.

Still, De Beers kept production steady in the second half of this year leading to an inventory buildup and has maintained its production plan of 29 million to 32 million carats for 2024, said Al Cook, the diamond miner’s CEO.

“We need to be careful with [production cutbacks], because a large number of our costs are fixed,” Cook continued at the same investor event. “So we need to avoid doing something that just disrupts mines, which then take a lot to recover from and doesn’t create the cost savings that you really want to drive out of this.”

The company has a “series of levers” it can pull in 2024 should the expected recovery not materialize and is working with partners in producer countries to identify options, Cook added.

Last week, De Beers announced it was changing its organizational structure and executive committee, with executive vice president and chief brand officer David Prager and acting executive vice president of strategy and innovation Ryan Perry set to leave in 2024.

Source: DCLA

Thursday 7 December 2023

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


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

Wednesday 6 December 2023

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


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

Tuesday 5 December 2023

Signet Sales Decline in Weak US Market


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

Monday 4 December 2023

Rio Tinto Delighted with Argyle and Diavik Tender

Rio Tinto Delighted with Argyle and Diavik Pink Diamond 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

Sunday 3 December 2023

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

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

Thursday 30 November 2023

Hong Kong Luxury Sales See Further Revival

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

Petra Sales Up, Prices Down

Petra Diamonds Operations Petra Diamonds reported increased sales for FY 2024, despite weak market conditions. The UK based miner said it ha...