Gem Diamonds has unearthed two large rough stones from its Letšeng mine in Lesotho, marking the fourth and fifth diamonds from the deposit over 100 carats this year.
The stones — weighing 245 and 102 carats — are high-quality, white, type II diamonds, the miner said Monday. The company found both stones on the same day.
The recoveries follow that of two diamonds weighing 370 and 254 carats in May. The company also discovered a 146.9-carat rough in January.
Output of large stones has been sluggish in the first half of the year as Gem Diamonds mined lower-value areas of the deposit, it explained. In the first six months of the year, the company unearthed three 100-carat-plus diamonds, compared to seven in the same period of 2020. Last year, Gem Diamonds recovered 13 stones greater than 100 carats by September 30, and 16 for the full year.
Alrosa’s rough-diamond prices have reached their highest level since late 2018, as scarcities have prevented the Russian miner from meeting strong demand.
The company’s rough-price index, which tracks like-for-like valuations, jumped 22% year on year in the third quarter and rose 10% versus the previous three months, it reported Friday.
While the diamond market’s recovery from the Covid-19 crisis eased during the period, sales were still well above 2020 figures. Total diamond revenue climbed 59% year on year to $938.1 million for the quarter, with rough sales gaining 63% to $903.8 million. The average selling price dropped 10% to $99 per carat.
“Jewelry demand is strong in all the key markets,” the company explained. “At the same time, rough-diamond stocks at miners are at minimal levels, as supply structurally dropped.”
The rough market began to recover in the third quarter of 2020 as consumer sentiment returned following the initial coronavirus-induced lockdowns. This led to a strong holiday season for retailers and a buoyant restocking period in the first quarter of 2021, leaving miners with minimal inventory from the second quarter onward.
This lower availability of goods contributed to a decline in sales in the third quarter relative to the second quarter, the miner pointed out.
The price index has advanced 25% since the beginning of the year, hitting a level the company last saw in the fourth quarter of 2018. Its stockpiles increased slightly to 8.6 million carats in the third quarter — up from an almost unprecedented low of 8.4 million carats in the second quarter — but were still down 72% year on year.
This also reflected a 5% year-on-year drop in production to 8.8 million carats. Although sales volume exceeded this, rising 83% to 9.2 million carats, inventories still grew because Alrosa was able to sell some 696,500 carats that it bought from Russian state gem depository Gokhran.
Meanwhile, sales from the miner’s polished-diamond division slipped 4% to $34.3 million.
In the first nine months of 2021, total diamond sales more than doubled to $3.27 billion versus $1.58 billion in the same period of 2020, reflecting the global market rebound. Rough revenues came to $3.13 billion, compared with $1.51 billion a year earlier.
The world’s largest retailer of diamond jewelry plans to acquire Charlotte-based Diamonds Direct in a $490 million deal.
Signet Jewelers Ltd. (NYSE: SIG) said today that it has entered into an agreement to buy the local jewelry chain in an all-cash transaction. It would add to the Bermuda company’s portfolio of jewelry brands that already consists of Kay Jewelers, Zales, Jared, H. Samuel and Ernest Jones, among others. Signet operates about 2,800 stores altogether.
“The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time,” Signet CEO Virginia C. Drosos said in a press release.
Shares in the company were trading at $80.88 at 2:30 p.m. today, down about 1.4% from $82.05 at yesterday’s close.
Diamonds Direct is currently owned by private-equity firm Blackstone Group (NYSE: BX), which purchased the company in 2015 for an undisclosed amount.
Diamonds Direct was founded in 1995 in Charlotte. It now has 22 locations in 13 states, as well as an online presence. That includes its flagship store in SouthPark, at 4521 Sharon Road.
The Diamonds Direct leadership team, storefronts and branded offerings will remain in place following the acquisition, according to a company spokeswoman.
“Signet will retain the Diamonds Direct brand and our unique value proposition as a separate banner, and plans to position Diamonds Direct as a new and differentiated luxury offering among the Signet portfolio,” Kelsey Halford Diachenko said in an emailed statement to CBJ.
She added that Diamonds Direct is “really excited about the opportunities” it will have with Signet once the deal closes.
Itay Berger, current president of Diamonds Direct, will report directly to Drosos.
The jeweler has a buying office inside the world diamond exchange in Israel. That allows it to source directly from mines and diamond cutters around the globe, and handpick merchandise.
It offers loose and mounted diamonds, bridal jewelry, diamond and gemstone fashion jewelry, and designer jewelry from America’s top brands.
“As a result of this transaction, everything our customers know and love about Diamonds Direct will just be getting bigger and better,” Diachenko said. “While Signet will infuse their resources into our business to fuel our growth, the heart of who we are, how we operate and what we believe in will not change.”
The deal is expected to be completed in Signet’s fourth quarter of fiscal 2022, putting the anticipated closing date sometime between November and the first of February.
De Beers has begun investigating Greenland’s potential as a source of high-value marine diamonds.
The miner commissioned a government agency to carry out a survey into diamond deposits, which are “known to be present” near the coast in the west of the Arctic island, according to an environmental assessment report by De Beers.
The Geological Survey of Denmark and Greenland (GEUS) — part of the Danish Ministry of Climate, Energy and Utilities — carried out the eight-day research in late September. GEUS set up and ran the survey, with De Beers requesting to extend it and participate in it, a spokesperson for the miner told Rapaport News Wednesday.
The purpose of the “small-scale, early-stage research” was to understand the region’s topography, he added, noting that it was unclear whether the location lent itself to concentrated sediments.
“De Beers Marine (DBM) would like to determine whether the offshore environment is conducive to the formation of secondary diamond deposits,” the environmental report said. “In order to do this, high-resolution geophysical data is required.”
Marine diamonds are generally of high quality, because only the best stones survive the impact of being washed around by water. De Beers currently mines marine diamonds off the coast of Namibia; the country’s 2020 rough production had a value of $465 per carat, one of the highest in the world, according to Kimberley Process data. The company is not carrying out similar surveys anywhere else, the spokesperson confirmed.
De Beers also operates land-based mining in Botswana, South Africa and Canada.
A California woman visiting the Crater of Diamonds State Park in Arkansas found a 4.38 carat yellow diamond after less than an hour of searching.
Arkansas State Parks said Noreen Wredberg of Granite Bay was visiting the park with her husband on Thursday and had been looking for gems in an open field for about 40 minutes when she spotted something shiny on the surface.
“I didn’t know it was a diamond then, but it was clean and shiny, so I picked it up,” Wredberg recalled.
Wredberg’s husband, Michael, took her find to the Diamond Discovery Center, where it was identified as a 4.38 carat yellow diamond.
“When I first saw this diamond under the microscope, I thought, ‘Wow, what a beautiful shape and color,'” Park Superintendent Caleb Howell said. “Mrs. Wredberg’s diamond weighs more than four carats and is about the size of a jellybean, with a pear shape and a lemonade yellow color.”
Officials said Wredberg’s discovery is the largest diamond found at the park since October 2020.
Wredberg said she hasn’t yet decided whether to have the diamond cut or to leave it as is.
“I don’t even know what it’s worth yet. It’s all new to me,” she said.
A diamond held by dop is polished on rotating automatic cast iron lap
Four government officials have been arrested in South Africa, following the disappearance of rough gems bought for a diamond cutting course.
The suspects, all employees at the Department of Economic Development and Tourism, were detained last Wednesday by the Hawks, the force that specializes in corruption and economic crime. They all face fraud charges. Back in 2010 the European Union donated over $440,000 to fund a mining qualification course – which included cutting and polishing – for 40 students at the Kimberley Diamonds International Jewellery Academy (KIDJA), Northern Cape. In July 2021 a random audit inspection discovered that rough gems bought for training purposes had disappeared. They were reportedly purchased from a private entity without the necessary licenses. Four suspects, aged 47 to 66, are due to appear at Kimberley Magistrates’ Court.
HRD Antwerp recently discovered a fake inscription on a polished diamond the lab had received for grading.
The 1.50-carat stone had a Gemological Institute of America (GIA) laser inscription corresponding to a natural grading report, HRD said Monday. The accompanying report listed the diamond as natural, with no color treatments. The stone was further identified as type IIa, meaning it contained virtually no elements other than carbon. However, during testing, the Antwerp lab found that the diamond had undergone High Pressure-High Temperature (HPHT) color treatment.
Although the diamond’s carat weight, color and cut precisely matched the GIA report, HRD noticed inconsistencies with clarity characteristics that were quite similar to those listed in the certification and could easily be mistaken during a standard loupe inspection, it explained.
“Detailed microscopic investigation by an experienced grader revealed that this was not the same diamond described in the report,” HRD said. “The clarity characteristics did not completely overlap. Since these characteristics are a unique fingerprint of the diamond, the inscription was conclusively identified as false. The diamond at hand had been intentionally inscribed with a fake laser inscription to deceive the customer.”
Correction: The story has been updated to clarify what was disclosed in the report and the findings of HRD.
The annual Kimberley Process (KP) plenary will take place online and in person from November 8 to 12, with the digitization of certificates featuring at the top of the agenda.
The hybrid format enables the KP to continue its activities despite the restrictions resulting from the coronavirus pandemic, Russia’s Finance Ministry, which is chairing the organization this year, said last week. Those eligible to visit Moscow under Covid-19 rules will be able to attend the physical event.
The meeting will focus on modernizing the KP export and import documents for rough diamonds. The ministry is currently finalizing a pilot program involving an information exchange with one of Russia’s key trading partners and plans to present its findings soon, it said.
The KP will also consider the applications of new countries wishing to join the group, having paused this due to travel difficulties. Since the easing of the situation, the KP has organized missions to Qatar and Kyrgyz Republic, and plans to do the same in Mozambique. The chairmanship and the committee that handles applications for participation in the KP will consider the reports emanating from those visits.
The Central African Republic (CAR) will also be on the agenda, with the KP planning to send an expert mission to the country to evaluate its compliance with rules aimed at preventing the export of conflict diamonds. In addition, the KP will select a new vice chair for 2022, with that country taking over as chair in 2023 from Botswana, which is slated to take the helm next year.
Meanwhile, Russia will work with KP partners to reach a consensus on the location of a future permanent KP secretariat to help streamline the organization’s work.
The KP canceled the 2020 plenary and intersessional meetings because of the pandemic. However, the 2021 intersessional took place in June, focusing on topics including digitization and human rights.
South Africa’s Petra Diamonds is considering selling its Williamson mine in Tanzania, even as it continues to work on bringing the operation back online in the second half of 2021.
Delivering its year-end results, Petra said that Williamson had been classified as a discontinued operation, which will mean an accounting loss of $52.1 million for the company. The mine was mothballed in April last year after diamond prices dropped following the global covid-19 outbreak.
BMO analyst Raj Ray said that while a sale could be viewed positively by the market, he sees potential risks in terms of realizing the value of $84 million (net book value of about $26 million at F2021 year-end) the bank ascribes to the asset, given the recent challenges.
“Recent efforts to procure a $25 million working capital facility with a local bank for the restart have so far been unsuccessful,” Raj wrote in a note to investors.
Petra has faced allegations of human rights abuses at the mine, resulting from the actions of its security guards.
The miner formed in February an internal committee to oversee the investigation, which concluded that “regrettable” incidents did take place at the mine in the past. Shortly after, it reached a £4.3 million (about $6m) settlement with claimants, even though it did not admit liability.
The company is currently engaged in talks with the Tanzanian government over a revised regulatory framework, which would lead to Williamson’s re-opening.
A key issue in those discussions concerns a parcel of 71,654 carats of diamonds effectively placed in limbo after deceased President John Magufuli blocked their export in 2017.
Turnaround Despite covid-19 and issues at Williamson, Petra has staged a sharp turnaround in fortunes over the past financial year. It cut net debt by two-thirds in the year ended June 30 after a capital restructuring completed in March and rising sales drove strong growth in free cash flow.
Petra ended fiscal 2021 with net debt of $228 million, down from just under $693 million last year. Net profit reached $196.6 million, reflecting a $213.3 million gain after the successful debt restructuring.
Revenue rose 65% to $402.3 million on the back of higher sales of exceptional stones.
As for fiscal 2022, Petra reaffirmed production guidance of 3.3 million-3.6 million carats, with capital expenditure of $78 million- $92 million.
wo splendid diamond bracelets that belonged to French queen Marie-Antoinette will go under the hammer in Geneva later this year, the auction house Christie’s said Wednesday.
The bracelets, coated with 112 diamonds in total, will be sold together and are estimated to fetch between $2-4 million when they go under the hammer on November 9.
That estimate “includes not only the intrinsic value of the diamonds, but also the possibility to wear jewellery that was once worn by the famous queen Marie-Antoinette,” Christie’s jewellery specialist Marie-Cecile Cisamolo told Agence France-Presse.
The historic jewels could meanwhile easily go for far more than the asking price.
“As seen in recent Geneva sales, the market for jewels of noble provenance continues to perform extremely well,” Francois Curiel, the chairperson of Christie’s luxury division, said in a statement.
In 2018, a natural pearl and diamond pendant that belonged to the ill-fated French queen was estimated by the Sotheby’s auction house at $1 million to $2 million but was snapped up for $36 million.
Marie-Antoinette, the last queen of France before the revolution, was guillotined in Paris in October 1793 at the age of 37.
But Cisamolo said that it was not just their history that made the bracelets extraordinary, pointing to the large size of the diamonds, which range from around 1 to 4 carats.
“It is very difficult to measure their exact size, because these are antique diamonds, and back then the sizes were less precise,” she explained.
While lacking the precision of today’s laser-cut gems, Cisamolo stressed the charm and uniqueness of antique diamonds.
In total, Christie’s estimates that the bracelets comprise 140 to 150 carats.
They are each composed of three rows of gems and can be connected together and worn as a necklace.
Paris, Brussels and Vienna
According to Christie’s Marie-Antoinette ordered the bracelets from jeweller Charles August Boehmer in Paris in 1776, two years after she ascended the throne.
She paid 250,000 livres, “a huge sum at the time,” Christies said.
Then the revolution arrived.
Before attempting to flee France with king Louis XVI and their children, Marie-Antoinette first made sure her jewels were sent out of the country.
They were sent to Brussels, governed by her sister Archduchess Marie-Christine, before being sent on to the French queen’s native Austria, ruled by her nephew, the emperor.
In 1792, the royal family was imprisoned in Paris. The king and queen were executed the next year, and their 10-year-old son Louis XVII died in captivity.
Only their daughter, Marie Therese of France, survived. She was freed in December 1795 and sent to Austria, where she was given her mother’s jewels.
“These jewels can thus be traced all the way back to Marie-Antoinette,” Cisamolo said, adding that she hoped whoever bought them “will cherish them for the rest of their life.”
“Not only are you wearing something that Marie-Antoinette wore,” she said. “The diamonds are extraordinary.”
The bracelets, she said, showing off the gems glistening on her wrists, “flow. It is as though you are wearing fabric.”
