Shaky gems market hits Petra Diamonds

Challenging conditions facing the global diamond industry were underlined on Monday after London-listed Petra Diamonds reported widening losses.

Petra said the industry was dealing with its worst market conditions since the financial crisis that began in 2008, as the company reported a full-year loss of $258m.

The global diamond market is struggling with lower prices and an oversupply of stones. In addition US-China tensions and pro-democracy protests in Hong Kong have hit demand in the industry’s key markets.

“You need a world that’s firing on all cylinders for diamonds to do extremely well,” Richard Hatch, an analyst at Berenberg said. “It’s a luxury, discretionary spend.”

Shares in Petra dropped to a record low of 7.17p on Monday, according to Refinitiv data. They ended the day down 6 per cent at 7.58p.

Stress is being felt across the industry. Last month De Beers, the world’s second-largest diamond producer, said its sales fell 44 per cent from a year earlier. Shares in other listed diamond producers have also sunk this year with Canada-listed Mountain Province Diamonds down 45 per cent and London-listed Gem Diamonds off by 35 per cent.

Petra’s loss included a non-cash impairment charge of $247m due to what the company said was a “more conservative” assumption for diamond prices. It had reported a $203m post-tax loss a year earlier. Revenues fell 6 per cent to $463.6m.

Petra, which runs the Cullinan diamond mine in South Africa, said diamond prices fell 4 per cent in its September tender from the fourth quarter ending in June.

Richard Duffy, who has been chief executive since February, said it would take between 12 to 18 months for the market to stabilise.

“It is a tough market,” Mr Duffy told the Financial Times. “But when it turns, it tends to turn quite quickly.”

Petra now expects that diamond prices will be flat for the next two financial years, rather than up by 3 per cent, above a long-term US inflation rate of 2.5 per cent a year, as previously forecast.

Petra, which also has mines in Tanzania, said it had discussed with its bankers the possibility it might breach certain covenants on its loans this year and next. It said the banks had “reaffirmed” their support.

Mr Duffy said the company would look to reduce its $595m of net debt by improving the efficiency of its mining operations. The company said it had “sufficient liquidity headroom” for at least 12 months.

Source: DCLA

Shaky gems market hits Petra Diamonds

Challenging conditions facing the global diamond industry were underlined on Monday after London-listed Petra Diamonds reported widening losses.

Petra said the industry was dealing with its worst market conditions since the financial crisis that began in 2008, as the company reported a full-year loss of $258m.

The global diamond market is struggling with lower prices and an oversupply of stones. In addition US-China tensions and pro-democracy protests in Hong Kong have hit demand in the industry’s key markets.

“You need a world that’s firing on all cylinders for diamonds to do extremely well,” Richard Hatch, an analyst at Berenberg said. “It’s a luxury, discretionary spend.”

Shares in Petra dropped to a record low of 7.17p on Monday, according to Refinitiv data. They ended the day down 6 per cent at 7.58p.

Stress is being felt across the industry. Last month De Beers, the world’s second-largest diamond producer, said its sales fell 44 per cent from a year earlier. Shares in other listed diamond producers have also sunk this year with Canada-listed Mountain Province Diamonds down 45 per cent and London-listed Gem Diamonds off by 35 per cent.

Petra’s loss included a non-cash impairment charge of $247m due to what the company said was a “more conservative” assumption for diamond prices. It had reported a $203m post-tax loss a year earlier. Revenues fell 6 per cent to $463.6m.

Petra, which runs the Cullinan diamond mine in South Africa, said diamond prices fell 4 per cent in its September tender from the fourth quarter ending in June.

Richard Duffy, who has been chief executive since February, said it would take between 12 to 18 months for the market to stabilise.

“It is a tough market,” Mr Duffy told the Financial Times. “But when it turns, it tends to turn quite quickly.”

Petra now expects that diamond prices will be flat for the next two financial years, rather than up by 3 per cent, above a long-term US inflation rate of 2.5 per cent a year, as previously forecast.

Petra, which also has mines in Tanzania, said it had discussed with its bankers the possibility it might breach certain covenants on its loans this year and next. It said the banks had “reaffirmed” their support.

Mr Duffy said the company would look to reduce its $595m of net debt by improving the efficiency of its mining operations. The company said it had “sufficient liquidity headroom” for at least 12 months.

Source: DCLA

If you have a Diamond Ring which you wish to sell …

DCLA provides a quick insight and options on how to resale and save you all the trouble.

Eventually we all have this experience. Someone close to us may leave property, air looms or a piece of Jewellery.

The resale value of a piece of jewelry may be very different from the original purchase price, determining this value can be a tedious and frustrating journey in itself.

While figuring out what to do with Property, figurines or crystal candy dishes we find something unexpected. A piece of Jewellery with what looks to be a diamond.

Should you choose to keep or bestow the item upon a loved one the story ends here.

However, if you want to sell it this is where your journey of discovery begins.

Advice is cheap and in some cases unqualified, so always look carefully at the source when taking it.

You may be told or hear the sole value of any piece of diamond Jewellery, unless from a recognised name like Cartier or Tiffany’s is in the diamond.

Alternatively, you might be told the value is in the piece as a whole.

Simple Fact is every item will be different.

One constant every expert will agreed on, is if there is a diamond of significant size in the engagement ring. The main diamond should be appraised by a Gemological laboratory of the level of DCLA, GIA or HRD.

The idea of removing the diamond from its setting and shipping it to one of these top recognised laboratories around the world seems daunting. So before you take this step call and ask the advice of the laboratory.

First Step

Michael Cohen and Roy Cohen, veterans in the diamond trade and third generation diamond experts explain “If you don’t have access to one of these laboratories in your area. Visit a trusted Jeweller in your area. Ask them to look at the stone in the mounting”. If the diamond can be safely removed, ask the Jeweller to give a costing for the service.

You can then submit the stone directly or through the Jeweller to qualified internationally recognised laboratory.

After submitting the lose diamond to a laboratory like the DCLA, HRD or GIA. A definitive grade with natural diamond or natural origin on the report, will be attributed to the diamond this will give the ultimate value.

This can take from a few days to weeks depending on the individual laboratory.

Laboratory Fees vary by carat size and gemological work required, this would be a very small percentage of the diamonds value so well worth the expense.

Once this is complete, most people that have reached this point have taken the decision to sell.

Next step

Based on the 4c’s size, colour, clarity and the shape of the diamond working out the value is not complicated.

A bit of online research will give an indicative retail value. However, the Buying or selling percentages and profits are determined by some shopping the items around.

Visit a ‘Trusted’ Jeweller or independent diamond dealer to get advice or an offer. Expect differences in price when a diamond new a is originally purchased, to when it is resold.

Every Jeweller will have different profit margins. In addition, each dealer will work with different qualities or sizes so finding the right buyer may take a few visits.

Using a Broker or Auction house

There are a number of ways to sell your jewelry, directly to a dealer or back into the trade or via a store on consignment or through a physical auction to name a few.

Be assured with the correct paperwork, and add extra security with Cold Laser inscription on the diamond linking the zone to the report permanently.

Source: DCLA

If you have a Diamond Ring which you wish to sell …

DCLA provides a quick insight and options on how to resale and save you all the trouble.

Eventually we all have this experience. Someone close to us may leave property, air looms or a piece of Jewellery.

The resale value of a piece of jewelry may be very different from the original purchase price, determining this value can be a tedious and frustrating journey in itself.

While figuring out what to do with Property, figurines or crystal candy dishes we find something unexpected. A piece of Jewellery with what looks to be a diamond.

Should you choose to keep or bestow the item upon a loved one the story ends here.

However, if you want to sell it this is where your journey of discovery begins.

Advice is cheap and in some cases unqualified, so always look carefully at the source when taking it.

You may be told or hear the sole value of any piece of diamond Jewellery, unless from a recognised name like Cartier or Tiffany’s is in the diamond.

Alternatively, you might be told the value is in the piece as a whole.

Simple Fact is every item will be different.

One constant every expert will agreed on, is if there is a diamond of significant size in the engagement ring. The main diamond should be appraised by a Gemological laboratory of the level of DCLA, GIA or HRD.

The idea of removing the diamond from its setting and shipping it to one of these top recognised laboratories around the world seems daunting. So before you take this step call and ask the advice of the laboratory.

First Step

Michael Cohen and Roy Cohen, veterans in the diamond trade and third generation diamond experts explain “If you don’t have access to one of these laboratories in your area. Visit a trusted Jeweller in your area. Ask them to look at the stone in the mounting”. If the diamond can be safely removed, ask the Jeweller to give a costing for the service.

You can then submit the stone directly or through the Jeweller to qualified internationally recognised laboratory.

After submitting the lose diamond to a laboratory like the DCLA, HRD or GIA. A definitive grade with natural diamond or natural origin on the report, will be attributed to the diamond this will give the ultimate value.

This can take from a few days to weeks depending on the individual laboratory.

Laboratory Fees vary by carat size and gemological work required, this would be a very small percentage of the diamonds value so well worth the expense.

Once this is complete, most people that have reached this point have taken the decision to sell.

Next step

Based on the 4c’s size, colour, clarity and the shape of the diamond working out the value is not complicated.

A bit of online research will give an indicative retail value. However, the Buying or selling percentages and profits are determined by some shopping the items around.

Visit a ‘Trusted’ Jeweller or independent diamond dealer to get advice or an offer. Expect differences in price when a diamond new a is originally purchased, to when it is resold.

Every Jeweller will have different profit margins. In addition, each dealer will work with different qualities or sizes so finding the right buyer may take a few visits.

Using a Broker or Auction house

There are a number of ways to sell your jewelry, directly to a dealer or back into the trade or via a store on consignment or through a physical auction to name a few.

Be assured with the correct paperwork, and add extra security with Cold Laser inscription on the diamond linking the zone to the report permanently.

Source: DCLA

De Beers Finds Buyer for Namibia Mine

De Beers has sold the Elizabeth Bay mine for $8.2 million USD, a year after it ceased operations at the deposit.

The miner chose Lewcor Group, a 100% Namibian owned consortium, following an extensive search for a new owner that would be able to operate the mine — part of its Namdeb joint venture with the government of Namibia in a sustainable way, and would also retain De Beers’ employees and contribute economic value to Namibia, it said last week. However, the amount of the transaction could increase to $12.4 million USD, as Namdeb will earn a share of revenue from the sale of diamonds recovered from certain marine mining areas.

“Throughout this process, our objective has been to create the best possible circumstances for reopening the operations, recreating jobs and growing empowered participation in Namibia’s diamond industry,” said Chris Nghaamwa, chairman of Namdeb. “A rigorous, independently advised process enabled Namdeb to select a company with not only the right mining and financial credentials, but also a commitment to meet future social and environmental obligations.”

De Beers ceased operations at the site in September 2018. Although the mine still contains a viable supply of diamonds, output failed to meet the company’s needs and it could no longer run the deposit economically, it said.

Source: DCLA

De Beers Finds Buyer for Namibia Mine

De Beers has sold the Elizabeth Bay mine for $8.2 million USD, a year after it ceased operations at the deposit.

The miner chose Lewcor Group, a 100% Namibian owned consortium, following an extensive search for a new owner that would be able to operate the mine — part of its Namdeb joint venture with the government of Namibia in a sustainable way, and would also retain De Beers’ employees and contribute economic value to Namibia, it said last week. However, the amount of the transaction could increase to $12.4 million USD, as Namdeb will earn a share of revenue from the sale of diamonds recovered from certain marine mining areas.

“Throughout this process, our objective has been to create the best possible circumstances for reopening the operations, recreating jobs and growing empowered participation in Namibia’s diamond industry,” said Chris Nghaamwa, chairman of Namdeb. “A rigorous, independently advised process enabled Namdeb to select a company with not only the right mining and financial credentials, but also a commitment to meet future social and environmental obligations.”

De Beers ceased operations at the site in September 2018. Although the mine still contains a viable supply of diamonds, output failed to meet the company’s needs and it could no longer run the deposit economically, it said.

Source: DCLA

South Africa grants Botswana Diamonds ‘critical’ environmental authorization

Botswana Diamonds said Thursday that it had received a “critical” environmental authorization for diamond-bearing gravels from the Marsfontein mine, next to the company’s own Thorny River project in South Africa.

The company noted the permission, granted to its associated firm Vutomi, was a critical step towards obtaining a mining permit, which it expected to receive shortly.

“We believe the mine gravels and unprocessed stockpiles around the Marsfontein mine contain commercial grades of diamonds,” chairman John Teeling said.

Botswana Diamonds has identified potential partners to process the gravels and stockpiles.

Source: DCLA