Firestone Diamonds revenue down as recovery rates, sales fall

Africa-focused Firestone Diamonds (LON:FDI) reported Wednesday a fall in first-quarter revenue due mainly to a fall in recoveries at its Liqhobong mine in Lesotho, the company’s only operating mine, and lower sale prices.

In three months to September, Petra’s first quarter of its 2020 financial year, it recovered 201,091 carats, down from 208,572 carats in the final quarter of 2019.

During the quarter, a single sale of 168,612 carats took place, generating revenue of $10.6 million, down from $12.7 million in the previous quarter. The average value was $63 per carat, down from $71.

Operating costs, however, fell to $10.32 per tonne — below guidance — from $12.57 per tonne.

FIRESTONE EXPECTS TO RESUME OPERATIONS AT LIQHOBONG’S TREATMENT PLANT IN EARLY NOVEMBER.

Firestone is to review 2020 guidance, it said on Wednesday, following “unexpected” power cuts at Liqhobong, where the treatment plant may not be able to fully resume operations until early November.

The miner had previously said it expected diamond recoveries to be between 820,000 and 870,000 carats, with ore tonnes treated between 3.6 million and 3.8 million tonnes.

Diamond miners are struggling across the board, especially those producing cheaper and smaller stones, where there is an over-supply.

Increasing demand for synthetic diamonds has also weighed on prices. Man-made diamonds require less investment than mining natural stones and can offer more attractive margins.

Buyers, those that polish and cut diamonds for retailers, have been hit this year by lower prices and tighter credit, prompting them to delay purchases.

Tiffany’s reported in August a 3% decline in like-for-like sales, while shares in Signet, the world’s largest retailer of diamond jewellery, have lost more than 60% of their value this year.

De Beers, the world’s No.1 diamond miner by value, has responded by axing production — with a target of 31 million carats this year compared with 35.3 million in 2018. It has also given buyers more room to maneuver, by allowing them to refuse half the stones in many of the diamond parcels.

Firestone’s chief executive, Paul Bosma, said he expected prices for smaller diamonds to increase towards the end of 2020, in part due to the closure of Rio Tinto’s Argyle mine in Australia.

Source: DCLA

Firestone Diamonds revenue down as recovery rates, sales fall

Africa-focused Firestone Diamonds (LON:FDI) reported Wednesday a fall in first-quarter revenue due mainly to a fall in recoveries at its Liqhobong mine in Lesotho, the company’s only operating mine, and lower sale prices.

In three months to September, Petra’s first quarter of its 2020 financial year, it recovered 201,091 carats, down from 208,572 carats in the final quarter of 2019.

During the quarter, a single sale of 168,612 carats took place, generating revenue of $10.6 million, down from $12.7 million in the previous quarter. The average value was $63 per carat, down from $71.

Operating costs, however, fell to $10.32 per tonne — below guidance — from $12.57 per tonne.

FIRESTONE EXPECTS TO RESUME OPERATIONS AT LIQHOBONG’S TREATMENT PLANT IN EARLY NOVEMBER.

Firestone is to review 2020 guidance, it said on Wednesday, following “unexpected” power cuts at Liqhobong, where the treatment plant may not be able to fully resume operations until early November.

The miner had previously said it expected diamond recoveries to be between 820,000 and 870,000 carats, with ore tonnes treated between 3.6 million and 3.8 million tonnes.

Diamond miners are struggling across the board, especially those producing cheaper and smaller stones, where there is an over-supply.

Increasing demand for synthetic diamonds has also weighed on prices. Man-made diamonds require less investment than mining natural stones and can offer more attractive margins.

Buyers, those that polish and cut diamonds for retailers, have been hit this year by lower prices and tighter credit, prompting them to delay purchases.

Tiffany’s reported in August a 3% decline in like-for-like sales, while shares in Signet, the world’s largest retailer of diamond jewellery, have lost more than 60% of their value this year.

De Beers, the world’s No.1 diamond miner by value, has responded by axing production — with a target of 31 million carats this year compared with 35.3 million in 2018. It has also given buyers more room to maneuver, by allowing them to refuse half the stones in many of the diamond parcels.

Firestone’s chief executive, Paul Bosma, said he expected prices for smaller diamonds to increase towards the end of 2020, in part due to the closure of Rio Tinto’s Argyle mine in Australia.

Source: DCLA

De Beers Slashes Output Amid Diamond Glut

De Beers’ production dropped in the third quarter as the miner responded to a decline in rough demand that has left it with an inflated stockpile of diamonds.

Output fell 14% to 7.4 million carats for the period amid planned mine closures and the transition from open-pit to underground mining at its Venetia project in South Africa, parent company Anglo American said Tuesday.

“We continue to produce to weaker market demand due to macroeconomic uncertainty as well as continued midstream weakness,” the miner noted. “Diamond inventory has continued to build during the third quarter due to the subdued market conditions. The elevated inventory levels are not expected to unwind until 2020.”

De Beers reduced production across all the countries in which it operates except Botswana, the miner said. In De Beers’ South African operations, production fell 60% to 535,000 carats due to the lower volumes at Venetia. Production also ceased at the Voorspoed project in the Free State province at the end of last year.

Output shrank 7% to 426,000 carats in Namibia following the shutdown of De Beers’ Elizabeth Bay land operations in September 2018. However, production remained flat in Botswana, at 5.7 million carats, with a 22% planned increase at its Orapa project offset by an 18% decrease at the Jwaneng mine.

In Canada, production dropped 34% to 779,000 carats, largely due to the closure of De Beers’ Victor operation in Ontario, which reached the end of its life earlier this year.

Sales volume jumped 48% year on year to 7.4 million carats, as the company held one more sight than during the same period a year ago. However, overall rough demand remained subdued, the miner explained.

In the first nine months of 2019, the miner produced 23 million carats, down 12% year on year. Its rough-diamond sales remained flat during the period.

Source: DCLA

De Beers Slashes Output Amid Diamond Glut

De Beers’ production dropped in the third quarter as the miner responded to a decline in rough demand that has left it with an inflated stockpile of diamonds.

Output fell 14% to 7.4 million carats for the period amid planned mine closures and the transition from open-pit to underground mining at its Venetia project in South Africa, parent company Anglo American said Tuesday.

“We continue to produce to weaker market demand due to macroeconomic uncertainty as well as continued midstream weakness,” the miner noted. “Diamond inventory has continued to build during the third quarter due to the subdued market conditions. The elevated inventory levels are not expected to unwind until 2020.”

De Beers reduced production across all the countries in which it operates except Botswana, the miner said. In De Beers’ South African operations, production fell 60% to 535,000 carats due to the lower volumes at Venetia. Production also ceased at the Voorspoed project in the Free State province at the end of last year.

Output shrank 7% to 426,000 carats in Namibia following the shutdown of De Beers’ Elizabeth Bay land operations in September 2018. However, production remained flat in Botswana, at 5.7 million carats, with a 22% planned increase at its Orapa project offset by an 18% decrease at the Jwaneng mine.

In Canada, production dropped 34% to 779,000 carats, largely due to the closure of De Beers’ Victor operation in Ontario, which reached the end of its life earlier this year.

Sales volume jumped 48% year on year to 7.4 million carats, as the company held one more sight than during the same period a year ago. However, overall rough demand remained subdued, the miner explained.

In the first nine months of 2019, the miner produced 23 million carats, down 12% year on year. Its rough-diamond sales remained flat during the period.

Source: DCLA

Petra Diamonds’ revenues decline

Petra Diamonds Limited lost some of their lustre, sliding 5.3% to 7.65p after the diamond miner underwhelmed with a trading update.

Revenue in the three months to the end of September – the first quarter of the company’s fiscal year – was down 23% to US$61.6 million from US$80.2 million in the same period of 2018.

The company sold 603,626 carats, compared to 626,541 a year earlier, at prices roughly 4% lower than in the three months to the end of June.

Source: DCLA

Petra Diamonds’ revenues decline

Petra Diamonds Limited lost some of their lustre, sliding 5.3% to 7.65p after the diamond miner underwhelmed with a trading update.

Revenue in the three months to the end of September – the first quarter of the company’s fiscal year – was down 23% to US$61.6 million from US$80.2 million in the same period of 2018.

The company sold 603,626 carats, compared to 626,541 a year earlier, at prices roughly 4% lower than in the three months to the end of June.

Source: DCLA

$14M Blue Diamond to Headline Christie’s Geneva

A fancy deep blue diamond ring with a high estimate of CHF 14 million will go under the hammer at Christie’s Geneva Magnificent Jewels auction next month.

The 7.03 carat stone, mounted by Moussaieff, will lead the November auction, Christie’s said Thursday. Another prominent lot is a 46.93 carat, D color, internally flawless diamond ring, which is expected to fetch CHF 3.8 million to 4.5 million.

Christie’s will also offer a 42.97 carat Burmese sapphire pendant, valued at up to CHF 3 million, and a pair of untreated Colombian emerald earrings, each weighing over 7.5 carats, with a presale estimate of CHF 1 million to 1.5 million.

Other items on offer include a rare Belle Époque brooch, dated circa 1910, which was procured by the Australian opera singer Dame Nellie Melba at the height of her career. The turquoise and diamond piece is valued at CHF 250,000 to CHF 350,000.

The sale also encompasses several Art Deco pieces from Cartier. Three brooches, formerly in the collection of Countess Béatrice of Granard OBE, have a high presale estimate of CHF 220,000. A diamond Cartier bandeau, which can also be worn as a choker, two bracelets and a brooch, is valued at up to CHF 500,000.

Highlights from the collection are available for viewing at Christie’s London on October 22 and 23, and at the Four Seasons Hotel des Bergues, Geneva, from November 7 to 12.

Source: DCLA