New models in Harry Winston’s Ocean Biretrograde collection reaffirm the brand’s status as one of the world’s most important purveyors of diamonds. Before the Swatch Group acquired Harry Winston in 2013, it was owned by Dominion Diamond company, the joint venture partner in Canada’s first diamond mine, Ekati, which entitled the company to first pick of run-of-mine gems.
Previous to that, it was owned by the Winston family. It was founded by Harry Winston, whose nickname, “the King of Diamonds,” resulted from his having acquired and sold some of the world’s top diamonds: the 726-carat Jonker; the 94.80-carat Star of the East (which he later sold to the Duchess of Windsor); and the storied 45.52-carat fancy blue Hope Diamond.
The Swatch Group has been careful to honor the legacy of Harry Winston, setting most ladies’ models, and some men’s, with diamonds new pieces in the Ocean Biretrograde Automatic 36mm collection and the more petite Emerald collection.
The Emerald collection is named after the shape of founder Harry Winston’s favorite diamond cut, the emerald. New 18k yellow and white gold models are ideal cocktail watches, at 18mm wide. They come with either a flexible Milanese woven bracelet or a classic satin double tour strap.
And now for the finale of the 2020 lineup: the Precious Cluster, set using Mr. Winston’s signature clustering technique with over seven carats of pear and trillion-cut diamonds, and the Winston Cluster, the high jewelry version with brilliant, marquise, and pear-cut diamonds totaling over 25 carats. The Cluster is a perfect response to the line, “Talk To Me Harry Winston!” from the 1953 song “Diamonds Are A Girl’s Best Friend.”
According to the official, synthetics will “compromise” the value of Botswana’s natural diamonds
Lucara Diamonds
Mmetla Masire, permanent secretary at Botswana’s Ministry of Minerals, said in a Parliamentary Accounts Committee quoted by Rough & Polished that Botswana cannot engage in production and sale of synthetic diamonds as this will compromise “the value of our diamonds”. Credit: Debswana
De Beers mining
Masire said that “Botswana will send a confusing message to its customers should it decide to produce and sale synthetic diamonds”. He added that the Debswana Diamond Company (the joint venture between the government of Botswana and diamond miner De Beers) is searching for other markets other than the US to sell its diamonds, including in China. Credit: De Beers
Masire “refused to provide an update on the ongoing negotiations between Gaborone and De Beers as disclosure of any information pertaining to the negotiations will potentially influence the outcome”. Botswana and De Beers’ huge 10-year diamond sale agreement is expected to expire by the end of 2020. Botswana accounts for more than two-thirds of De Beers’ diamond production.
Western Australia has reduced its diamond royalty rate by a significant 33.3 per cent, a move that has been welcomed by Gibb River Diamonds.
The company’s lobbying has led to the reduction of the state diamond gross royalty rate from 7.5 per cent to 5 per cent.
Gibb River stated that the royalty change was in line with the recommendations of the Mineral Royalty Rate Analysis report.
This was published by the Western Australian Department of State Development and Department of Mines and Petroleum in 2015.
“The board of (Gibb River) believes that the reduction of the diamond royalty will have a very positive effect on the sector and is an extremely helpful step in further (Gibb River’s) aim of becoming a profitable diamond producer in Western Australia,” the company stated in an ASX announcement.
The rate is comparable to the 5 per cent royalty rate applied to Rio Tinto’s Argyle diamond project in Western Australia as of May this year, which was amended from the 7.5 per cent rate in 2006 when Rio Tinto decided to proceed with underground mining.
Gibb River operates the Ellendale diamond project in the West Kimberley, which supplies over 50 per cent of the world’s fancy yellow diamonds every year.
The rare colour had driven United States jeweller Tiffany & Co to ink a six-year deal with Ellendale’s former operator, Kimberley Diamonds, for the supply of the diamonds in the past.
Petra Diamonds (PDL.L) has agreed to sell its Botswanan exploration assets to Botswana Diamonds (BODP.L) for $300,000 and a 5% royalty on future revenue, the diamond miner, which is in the process of restructuring, said on Monday.
The purchase price will be payable in two equal instalments on or before August 31, 2021 and August 31, 2022, Petra said. Botswana Diamonds has the option to buy out the royalty for $2 million in cash.
Petra’s subsidiary Sekaka Diamonds Exploration (Pty) Limited, which Botswana Diamonds would take over, holds three prospecting licences including the KX36 project, which has an indicated resource of 17.9 million tonnes at 35 carats per hundred tonnes.
Botswana Diamonds managing director James Campbell said KX36 would be the company’s most advanced project in southern Africa, and Sekaka’s exploration database would also be “hugely complementary” to its current activities.
Petra, which has been planning to sell Sekaka since June 2018, said the deal is separate to the sales process it announced last month as part of its restructuring.
“The first tranche of the purchase consideration is not expected to be received until August 2021, making the sale too long-dated to help with Petra’s immediate cash flow challenges,” said BMO analyst Edward Sterck.
The sale still requires approval from the Botswana Competition Commission, ministerial consent in Botswana, and approval from Petra’s lenders and debtholders.
Campbell said he hopes the deal will be sealed by August 31.
Southstone Minerals Ltd. [SML-TSXV] provided a production and operational update for December 1, 2019, to February 28, 2020 (Q2 2020), and March 1 to May 31, 2020 (Q3 2020), on its project portfolio in South Africa.
The Oena Project consists of one New Order Mining Lease located in the Northern Cape Province, South Africa. Oena is 8,800 hectares in size and covers a 4.8-km wide strip along a 15-km length of the lower Orange River. Southstone owns 43% of African Star Minerals (Pty) Limited which owns 100% of the property.
Southstone continues to focus and prioritize its efforts on the alluvial Oena diamond mine. There is currently one mining contractor on site using eight pan plants to process run-of-mine (ROM) material and one Bourevestnik (BVX) unit used for diamond recovery.
Production results for both Q1 and Q2 were impacted as a result of the mandatory closure of the mine for the period from March 26, 2020, to May 3, 2020, due to COVID-19. A total of 803.92 carats (112 diamonds) were produced, placed on tender and sold with an average price of US $1,957 per carat.
Bluedust Carats produced No. of stones US$/carat
Q2 2020 ROM 588.14 77 1,942
Q3 2020 ROM 215.78 35 2,001
The Oena diamond mine continues to produce very large and high-quality diamonds. For example, 52.62 carats (sold for US $127,975), 44.25 carats (US$243,000), and 37.03 carats ($188,962). Twenty other stones were greater than 10 carats.
Kwena Group, Republic of South Africa
Shareholders approved the disposition of the Kwena Group on May 15, 2020, and the company received final approval from the TSX Venture Exchange on the May 25, 2020. This disposition of the Kwena Group resulted in a total of 4,527,416 shares being returned to treasury and the forgiveness of outstanding indebtedness of the equivalent of $1.2-million.
Southstone agreed to settle an outstanding debt of $35,430 to two creditors by issuing 708,600 shares at $0.05 per share, subject to TSXV approval.
Belgium’s diamond trade slowed in June, with polished exports down 44% year on year to $469 million, according to data from the Antwerp World Diamond Centre (AWDC). However, the rate of decline eased following heavier drops in April and May, when the global industry shut due to the coronavirus. US orders rose 4% to $173 million in June, indicating a gradual recovery as the important retail market reopened.
Belgium Trade Data for June 2020
June 2020
Year-on-year change
Polished exports
$469M
-44%
Polished imports
$350M
-66%
Net polished exports
$120M
2019: Deficit of $185M
Rough imports
$351M
-48%
Rough exports
$237M
-71%
Net rough imports
$114M
2019: Deficit of $125M
Net diamond account
$6M
2019: Deficit of $60M
Polished exports: volume
146,350 carats
-60%
Average price of polished exports
$3,206/carat
40%
1H 2020
Year-on-year change
Polished exports
$2.49B
-58%
Polished imports
$2.51B
-59%
Net polished exports
-$14M
Deficit decreased 95%
Rough imports
$2.75B
-37%
Rough exports
$2.25B
-55%
Net rough imports
$494M
2019: Deficit of $621M
Net diamond account
-$508M
2019: Surplus of $360M
Polished exports: volume
1.2 million carats
-46%
Average price of polished exports
$2,097/carat
-21%
Source: Antwerp World Diamond Centre; Rapaport archives
About the data: Belgium is usually a net exporter of polished diamonds. As such, net polished exports— representing polished exports minus polished imports — will normally be a positive number. The nation is also a net exporter of rough. While Antwerp is home to some high-value manufacturing, its main role in the market is as a facilitator of rough-diamond trading, with companies from around the world coming to the city to buy rough. The net diamond account is total rough and polished exports minus total imports. It is Belgium’s diamond trade balance, and shows the added value the nation creates by exporting rough or manufacturing it into polished.
Live jewelry auctions are returning with the first one being held in Geneva by Sotheby’s on June 23 offering a diverse collection of statement diamonds, colored gems and historic jewels.
Sotheby’s Part II Magnificent Jewels & Nobel Jewels – Geneva sale was originally scheduled for May but was postponed due to the novel coronavirus pandemic. The effects of the worldwide spread of this infectious disease is still being felt as dramatically reduced travel and freight shipments have hampered the efforts of jewelry specialists to assess gems and jewels. Most likely because of this and the scheduling changes the sale consists of only 48 lots, far fewer than usual for a live international auction. However, there will be a strong and varied selection gems and jewels.
The live sale is accompanied by an online auction, Sotheby’s Part I Magnificent Jewels & Nobel Jewels – Geneva, with 178 lots dating from the 19th century through to the present day. It includes jewels from renowned jewelry houses, including Sterlé, Suzanne Belperron, René Boivin and Hemmerle. This sale has begun and will run till June 24.
Not surprisingly colored diamonds are among the top lots in live sale, with blues, pinks and yellows dominating. The auction is led by a 3.01-carat fancy vivid blue step-cut, diamond. The colored gem set on a ring has a clarity grade of VS1 (very small inclusions), according to the Gemological Institute of America report. Its estimate is $4.3 – $6.3 million.Most Popular In: Watches & Jewelry
It’s followed by a 7-carat marquise-shaped fancy intense pink diamond. It received a clarity grade of VVS2 (very, very small inclusions) by the GIA. It is set on a ring flanked by fancy-shaped diamonds and with a shank lined with brilliant-cut diamonds. It’s the first time this diamond has come to auction in more than 30 years, where it has been kept in the same private collection. Its estimate is $2.5 – $3.5 million.
There’s also a selection of large, colorless diamonds led by a 21.56-carat D color, VVS1 clarity diamond by Lorraine Schwartz, an American bespoke high jewelry designer with a large celebrity clientele. The gem has excellent polish and symmetry, according to the GIA report.
The Duchess of Manchester’s emerald and diamond necklace, estimate: $300,000 – $400,000 SOTHEBY’S
Among the noble jewels in the sale, the standout is an emerald and diamond necklace owned by Consuelo Montagu (1853-1909), Duchess of Manchester, which was given to her as a wedding gift. Born in New York to parents of Cuban descent, she was known for her match-making skills, inspiring her wealthy friends to find suitable husbands in the United Kingdom, according to the auction house. Her ability to bring together American fortunes with noble titles led to the coining of the phrase “Million Dollar Princesses.” This antique jewel was displayed at the Victoria & Albert Museum in London for 22 years. Its estimate is $300,000 – $400,000.
Cartier diamond bracelet and pair of diamond clips, circa 1930 SOTHEBY’S
In addition, there’s a collection of jewels owned by Baroness Bachofen von Echt (1877 – 1959), a New York native who became German nobility through marriage. Pieces from her collection includes a diamond bracelet (estimate $100,000 – $150,000) and diamond clips (estimate $60,000 – $100,000), both made by Cartier, along with creations by Verdura and Hemmerle.
Two impressive sapphires are included in the sale. The first is a 105.58-carat Ceylon sapphire set on a gold ring. The gem is accompanied by reports from the Swiss Gemmological Institute (SSEF) and from Gübelin that both state that there are no indications of heating, with “a few minor nicks and chips consistent with normal wear.” Its estimate is $500,000 – $700,000.
The second is a 16.11-carat Kashmir sapphire set on an 18k gold and diamond ring. The gem is accompanied by two reports from the Swiss Gemmological Institute and from Gübelin that both state that there are no indications of heating and in “very good condition.” Its estimate is $300,000 – $500,000
The continued importance of signed jewels is evident in this sale with pieces from historic and contemporary jewelry houses, including Bulgari, Cartier, Fred, Furst. Harry Winston, Hemmerle, René Bovin, Tiffany & Co. and Van Cleef & Arpels.
One of the standouts in this group is a Cartier diamond and platinum bracelet, Course de Feuillage, 1926. The entire bracelet is set with circular-, single-cut and baguette diamonds that combines geometric shapes with the stylized representation of leaves. Its estimate is $200,000 – $300,000.
The Diamond Producers’ Association (DPA), established only five years ago by a coalition of diamond miners including De Beers and Alrosa, has relaunched as the Natural Diamond Council.
In addition to continuing to advertise natural diamonds as the DPA did previously, the council is also hoping to reach younger consumers by producing catchy editorial content on trends and innovations in diamond jewelry and the heritage of natural diamonds.
The rebranding comes at a difficult time for the diamond sector, with the economic fallout from the coronavirus pandemic depressing demand and prices.
“The current economic climate creates unprecedented challenges for the luxury industry. But, as the climate improves, natural diamonds will connect stronger than ever before,” said Natural Diamond Council CEO, David Kellie in a release. “Consumers will have a greater respect for all things natural and seek brands that have an honest mission to be truly sustainable. They’ll be purchasing luxury goods with a greater meaning, particularly those celebrating connections between friends and loved ones. We need to speak to the younger audience in a different way and we’re delighted to have brought in a number of partners that will contribute to the new world of natural diamonds we’re creating.”
The website will offer coverage under six categories: Epic Diamonds, Hollywood & Pop Culture, Love & Diamonds, Style & Innovation, Diamonds 101 and Inside the Diamond World. The council has also started a new, biannual trend report written by style experts, forecasting diamond jewelry trends, and incorporating styling tips.
In addition, the DPA’s Real is Rare, Real is a Diamond campaign will be replaced with the council’s new branding: “Only Natural Diamonds” (OND).
“Our new digital platforms will inspire and inform consumers globally about the values and heritage of natural diamonds, as well as promoting the significant innovation happening throughout the world of diamond jewelry,” added NDC’s managing director, Kristina Buckley Kayel. “The younger audience is clearly engaged and inspired when we present ourselves with authority in the digital world. It’s our aim to be number one across all digital platforms in our industry and our ambitious plans reflect these goals.”
The Natural Diamond Council will also aim to educate consumers on the sustainability and ethical practices of diamond producers, as well as everything they need to know when buying diamond jewelry.
In a release, the organization said the relaunch reflects the collective commitment of its members, Alrosa, De Beers, Dominion Diamonds, Lucara Diamond, Petra Diamonds, Murowa Diamonds, and Rio Tinto, to the growth of the industry beyond the current economic crisis.
“Our mission is to educate consumers on the industry and positive social contribution diamonds make to the world today,” said Stephen Lussier, Chairman of the NDC. “Our members are committed to these goals and the launch of the NDC marks an exciting step on this path.”
Visit www.naturaldiamonds.com for more information.
Canada’s Dominion Diamond Mines has unveiled a transaction that would allow it to exit court protection from creditors and access short-term operating funds, which would pave the way to eventually restart its idled Ekati mine in Canada’s Northwest Territories.
The company, which owns and operates the iconic Ekati diamond mine and also has a 40% interest in the nearby Diavik, said it had signed a letter of intent with an affiliate of The Washington Companies.
The privately held Montana-based conglomerate bought Dominion for $1.2 billion in 2017 when the miner was the world’s third-largest producer of rough diamonds by value.
Under the agreement, which requires court approval, Washington would buy the company’s assets for about $177 million, while assuming its operating liabilities.
It would also provide Dominion with up to $84 million in short-term debtor-in-possession financing.
Ekati has been halted since March to help slow down the spread of the coronavirus pandemic. The operation was left with about $180 million worth of inventory, which it has been unable to sell since its Belgian retailers remain closed.
The diamond miner said at the time that covid-19 had a “devastating impact” on the global diamond mining industry, affecting the company.
According to court documents seeking bankruptcy protection from creditors, Dominion revenue from diamond sales last year reached about $528 million.
The company said the proposed sale would be conditional on reaching an agreement with Rio Tinto on the Diavik joint venture. Failing that, Dominion would exclude its interest in the Yellowknife diamond mine from the transaction.
The miner is a major employer in the Northwest Territories, with 634 workers, 60% of whom are locals. Only 212 people are currently at the mines, which are fly-in and fly-out operations. This allows for a pre-screening of the staff before they are allowed to board flights to Ekati and Diavik.
Shattered dreams
The global coronavirus outbreak squashed diamond miners’ dawning hopes of a recovery in a sector already reeling from weak prices and demand since late 2018.
De Beers, the world’s largest producer by value, cut 2020 production guidance by a fifth last month after earlier cancelling its April sales event.
Russia’s Alrosa, the world’s top diamond producer by output, saw sales for rough and polished diamonds drop to $15.6 million. The figure stood in stark contrast to the $152.8 million the diamond miner fetched in March and the $405 million in January.
Lucara Diamond, another Canadian company, posted earlier this month a net loss of $3.2 million, or $0.01 a share, for the first three months of the year.
The figure was in sharp contrast with the $7.4 million in net income, or $0.02 in earning per share the miner reported in the same period last year.
South Africa’s Petra Diamonds recently delayed interest payments to borrow $21 million in new debt, a crucial move to keep the company afloat.
Investment banks are increasingly reluctant to extend credit to diamond producers, as inventory is not being sold and defaults are possible, analysts have warned.
“We are concerned about an oversupply of rough diamonds following the reopening of economies, as a lot of inventory could potentially be flooded into the system and the market might not be able to absorb all of it, resulting in increased pricing pressure,” Citi said in an early May note.
A new study by University of Alberta scientists could help guide the search for rare, high-value yellow diamonds in the Canadian North.
The researchers, led by PhD student Mei Yan Lai, examined the chemical makeup of stones recovered from the Chidliak and Ekati mines in Northern Canada to get a better understanding of how they formed.
“Without this research, we wouldn’t know that two separate formation events occurred, and that the second, more recent event is responsible for the yellow colour,” explained U of A diamond geologist Thomas Stachel.
“The more we know about the origin of these potentially high-value diamonds, the better results for diamond exploration and value creation in Northern Canada.”
Lai said they wanted to understand the origin of the yellow colour in the diamonds from the two deposits.
“Canadian yellow diamonds have never been studied spectroscopically in detail. Our results suggest that the cause is the preservation of unstable single nitrogen atoms preserved inside the diamonds,” explained Lai, who conducted this research as part of her master’s studies in the Diamond Exploration Research Training School under the supervision of Stachel.
The research team determined that some yellow diamonds contain colourless cores, meaning that the yellow outer layers crystallized on top of clearer centres. Lai determined that the yellow diamonds crystallized no more than 30,000 years before the kimberlite eruptions that brought them up to Earth’s surface.
“Our analysis shows that the colourless cores in these yellow diamonds are about one billion years older,” Lai said. “In fact, the carbon isotope compositions and nitrogen concentrations of the colourless cores and yellow outer layers are significantly different, suggesting that they formed in at least two distinct events and involved different diamond-forming fluids.”
The researchers said discovering a potential new source of yellow diamonds in the Canadian North is economically significant, as the previous main source of high-quality yellow diamonds, the Ellendale Mine in Western Australia, was recently shut down.
The discovery of colourless cores in some of the yellow diamonds may also be of interest to the jewelry trade, said Lai.
“Occasionally, rough yellow diamonds lose their vibrant yellow colour after being cut and polished—probably because this kind of diamond has a thin layer of yellow overgrowth on top of the geologically older colourless core,” she said.
The project is a collaboration with Dominion Diamond Mines and Peregrine Diamonds Ltd. Part of the analyses were done at the Gemological Institute of America.
The research is supported by a bursary through DERTS, funded by the Natural Sciences and Engineering Research Council of Canada’s Collaborative Research and Training Experience program.
The study, “Yellow Diamonds With Colourless Cores—Evidence for Episodic Diamond Growth Beneath Chidliak and the Ekati Mine, Canada,” was published in Mineralogy and Petrology.
