News – Page 86 – The Diamond Certification Laboratory of Australia (DCLA)

Lucapa finds 171-carat diamond at Angola mine

Gem-quality 171 carat white diamond found at Lulo.

Lucapa Diamond has recovered a 171 carat gem-quality stone from its prolific Lulo mine in Angola, which was restarted in early May.

The miner said the white diamond is the 15th 100-plus carat it has recovered to date from Lulo and the second 100-plus carat precious rock found in 2020.

The diamond was recovered from mining block six, where five other 100-plus carat diamonds had been previously unearthed.

Mining blocks six and eight have now produced 13 of the 15 100 plus carat diamonds recovered at Lulo, Lucapa said. This includes Angola’s largest recorded gem, which is a 404 carat diamond sold in 2016 for $16 million.

The miner has a 40% stake in the Lulo mine, which hosts the world’s highest dollar-per-carat alluvial diamonds. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Angola is the world’s fifth diamond producer by value and no.6 by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.

Last year, the country held its first public diamond auction and since then, producers no longer have to sell at below-market prices to a handful of buyers favoured by the state.

Endiama recently revealed it was seeking international partners in an attempt to place Angola among the world’s top-three diamond producers.

Source: mining.com

Big-Stone Recoveries Return as Letšeng Reopens

Gem Diamonds new large rough diamond recoveries

Gem Diamonds has recovered a number of large, high-quality stones at its Letšeng mine in Lesotho, all found in the first week after production resumed following the COVID-19 lockdown.

They include a 60-carat, light-yellow, type I diamond, and three D-color, white, type II diamonds weighing 87, 66 and 23 carats, the company said Monday. It also found several diamonds over 10.8 carats.

Between February and March, the miner unearthed four white diamonds weighing 88, 56, 53 and 33 carats. It has also retrieved two diamonds over 100 carats so far this year, and a 13.33-carat pink.

Gem Diamonds restarted production at Letšeng last week after the government allowed the mining sector to reopen following an extended shutdown. Lesotho remains on lockdown until May 5.

Source: Diamonds.net

Pandora in the Red as China Market Slows

Pandora reported a loss in the first quarter following global store shutdowns amid the coronavirus outbreak.

The company posted a loss of DKK 24 million ($3.5 million), compared with a profit of DKK 797 million ($115.8 million) the previous year, the Danish charm maker said Tuesday. The loss was driven by the global shutdown of all the company’s stores during the period as the COVID-19 pandemic spread, particularly in China.

“The Chinese market was in many ways challenging for Pandora in [the first quarter],” the company noted. “Pandora started to close physical stores due to COVID-19 from late January, and the logistics of the online channel were also disrupted.”

Global sales fell 13% year on year to DKK 4.17 billion ($606.1 million) for the January-to-March period, the Danish charm maker reported Tuesday. Revenue in the US slipped 7% in local currency to DKK 935 million ($135.8 million), while sales in China plunged 61% to DKK 212 million ($30.8 million) in local-currency terms.

Prior to the closures, the company saw positive growth in the first two months of the year in key markets including the US, the UK, Italy, France and Germany. Total revenue was up 1% for January and February, as consumers responded to the company’s new brand marketing.

Online sales were also strong, primarily during the lockdown period, growing 29%, Pandora said. The online channel grew by triple-digit rates in April.

Sales have improved since the end of the quarter, as stores began to reopen, the company noted. Although markets in China reopened in March, traffic was still weak, but demand strengthened “substantially” in April.

“Traffic into the stores is gradually improving and is getting closer to a normalized level,” Pandora said. The company has hired a new general manager for the region to help turn around performance and establish Pandora as a “unique and well-known brand” in China. The jeweler has also begun to reopen stores in Germany.

Pandora is preparing a number of commercial initiatives it plans to roll out as soon as the market situation strengthens.

“The group is now preparing for the recovery after the pandemic, and our strong performance in January and February makes us confident in the underlying brand momentum,” said Pandora CEO Alexander Lacik. “We have implemented cost and cash initiatives to ensure that we have the necessary financial strength for a strong commercial comeback when demand starts normalizing.”

The company will not issue financial guidance for 2020 until the market stabilizes and it can provide meaningful information, it noted.

Source: Diamonds.net

Alrosa halts diamond mining at two assets

Russia’s Alrosa, the world’s top diamond producer by output, is temporarily suspending production at two assets as demand and sales for diamonds continues to drop.

Major consumers, including China and the United States, are struggling with economic headwinds caused by the global covid-19 pandemic. Extended lockdowns affecting key players in the supply chain, including polishers and top retailers, has only made things worse.

The Russian state-controlled miner said the dire state of the market would force it to halt its Aikhal underground mine and Zarya open pit from May 15 to September 30 and to December 30, respectively.

The two assets account for roughly 7% of the company’s diamond output in carat terms. They produced 2.6 million carats of rough diamonds last year.

Personnel of suspended operations and auxiliary services will be partially laid-off, Alrosa said. The remaining employees will be transferred to other assets or stay to keep up maintenance work at the idled operations.

The diamond giant said in March it may revise down its output guidance for 2020, which currently sits at 34.2 million carats. In 2019, it produced 38.5 million carats.

Source: mining.com

Don’t Ban Rough Buying, De Beers Urges

De Beers CEO Bruce Cleaver has called on the trade to allow rough purchases, assuring manufacturers the company won’t require them to buy in the weak market.

“We will only sell [rough] when the demand is such that it can create sustainable value for all of us,” the executive wrote in a blog post Friday. “However, just as we are not compelling our clients to purchase, we strongly believe it is counterproductive for any part of the industry to compel them not to purchase.”

Cleaver’s plea comes after the Gem & Jewellery Export Promotion Council (GJEPC) and other Indian trade organizations called on the nation’s diamond sector to pause rough-diamond imports for 30 days, beginning on May 15. The move would improve the Indian industry’s liquidity situation and deplete inflated polished inventories, the trade bodies explained.

Without explicitly referencing the Indian trade groups’ appeal to their members, Cleaver argued that supply had already been significantly reduced after De Beers suspended production at most of its mines. “Almost all other diamond producers have halted or significantly reduced supply, with some mines unlikely to return to production,” he added. De Beers cut its production guidance for 2020 to 25 million to 27 million carats, more than 20% below its initial projection, Cleaver noted.

The company also canceled its March sight and is offering 100% deferrals at sight 4, which begins Monday. Sightholders are likely to defer the vast majority of purchases to later in the year, as weak consumer demand and the shutdown of India’s cutting industry have diminished appetite for rough.

On Friday, India extended its nationwide lockdown by two weeks, raising the question of when diamond manufacturing would revert to normal, especially in the city of Surat, which produces more than 90% of the world’s polished goods.

Marketing message

Meanwhile, Cleaver urged the industry to capitalize on the diamond’s symbolism, as consumers will seek to purchase “fewer, but more meaningful things” as they move out of lockdown. Signs of pent-up demand from delayed weddings, and self-purchases to reward hardships that have been overcome, are starting to show in China as the lockdown there has eased, the CEO commented. People are visiting stores and shopping malls again, he said.

In its communication with consumers over the coming months, De Beers will emphasize the role diamonds play in shaping a better world and in forging meaningful connections, he stressed.

“Just as they have had to find innovative ways to stay connected with loved ones, we will find new ways to connect with them,” he said.

“Throughout time, the diamond has served as a powerful symbol of connection and meaning,” he wrote. “It has always been attached to life’s most precious moments and relationships and represented a store of value, but increasingly we believe a diamond is becoming a store of values.”

Source: Diamonds.net

India Trade Urged to Freeze Rough Imports

India’s leading diamond-trade organizations have called on members to stop importing rough for at least a month to prevent an oversupply and ensure banks maintain their credit to the sector.

Companies should consider pausing rough imports from May 15 for a minimum of 30 days, according to a letter from the Gem & Jewellery Export Promotion Council (GJEPC) and four other industry bodies, seen by Rapaport News.

The move — which would be voluntary on the part of the importers — would help the trade recover from the COVID-19 crisis by avoiding a flood of rough entering the pipeline, the letter explained. It would also show lenders that the trade is willing to minimize its debts, thereby dissuading them from slashing credit.

“Such import stoppage will help the industry face the challenge that has arisen out of turmoil in the global gems and jewelry market,” the groups said in their plea to the trade Wednesday. It was signed by heads of the GJEPC, the Bharat Diamond Bourse in Mumbai, the Mumbai Diamond Merchants Association, the Surat Diamond Bourse, and the Surat Diamond Association.

India’s polishing sector and diamond trade are shut until May 3 at the earliest due to a nationwide lockdown aimed at containing the coronavirus. As it stands, any rough that enters India would remain in inventory until business reopens. Meanwhile, closures of retail and trading centers around the world have obliterated polished demand, putting severe pressure on the Indian industry.

The groups that signed the letter have met with leading diamond exporters and other prominent trade members to explore steps to minimize the impact of the downturn. They have also written to the Indian government to inform it of the “precarious” state of the country’s gem and jewelry industry, they said. The GJEPC and the trade will review the matter in the second week of June to decide if further action is necessary.

Source: Diamonds.net

De Beers Makes Dramatic Cut to Production Plan

De Beers has reduced its full-year production guidance by 7 million carats, putting the miner on course for its lowest output since 2009.

The miner expects to produce between 25 million and 27 million carats in 2020, compared to the 32 million to 34 million in its original projection, it said Thursday. The revised forecast for 2020 was due to the impact of the COVID-19 pandemic on mining activity and consumer traffic in key markets, the miner noted.

Rough-diamond production for the first quarter of 2020 slipped 1% to 7.8 million carats, roughly in line with the previous year. However, the coronavirus shutdown measures were not implemented at the miner’s sites until the end of the period, and had a limited impact on output, De Beers said.

Sales volume rose 19% to 8.9 million carats for the three months ending March 31. The increase was due to a favorable comparison with the same period the previous year, when demand was weak due to an oversupply of polished stones in the manufacturing sector. Additionally, the decline in demand caused by the pandemic — during which De Beers allowed customers to defer some of their allocations to the second quarter — was offset by higher appetite for lower-value goods, the company noted.

Production in Botswana declined 5% to 5.6 million carats, with diamond recovery at De Beers’ Orapa mine falling 7% as result of challenges in commissioning new plant infrastructure. Output at Jwaneng slipped 4% due to a planned shift to lower-grade ore.

Production in Namibia grew 6% to 511,000 carats, and in South Africa jumped 97% to 751,000 carats, as the final ore from the company’s open-pit operations at Venetia was mined prior to the transition to underground.

Output in Canada slid 19% to 844,000 carats, primarily due to the closure of the Victor mine, which reached its end of life in the second quarter of 2019. Output from Gahcho Kué, which the company owns in partnership with Mountain Province, rose 4% to 844,000 carats.

The first quarter featured two sales cycles, with proceeds falling 9% to $906 million. Demand reached a near-yearlong high in January, but fell again in February as the coronavirus began to spread. The company was forced to cancel its third site, which was due to begin at the end of March.

In 2009, the company slashed production by 49% to 24.6 million carats for the year when the global economic slowdown hit diamond demand.

Source: Diamonds.net

JCK Las Vegas Canceled for 2020

The 2020 JCK Las Vegas and Luxury shows have been canceled, the events’ organizer has confirmed, as the coronavirus continues to sweep across the globe.

“This decision was made in response to the unprecedented challenges faced by JCK’s jewelry community,” Sarin Bachmann, Reed Jewelry Group’s vice president for the shows, said Tuesday. “We know [it] impacts the entire industry and it was not made lightly.”

The main JCK Las Vegas trade fair was originally scheduled to begin June 2, while its sister event, Luxury, was due to start on May 31. Reed Exhibitions said last month that it was planning to postpone both events to an undetermined later date. However, the organizer has now confirmed that the next editions will take place at the Venetian Resort & Sands Expo in June 2021.

Reed Jewelry Group will host a remote event called JCK Virtual 2020 this summer, it said, noting it was “creating other virtual tools to assist jewelry professionals.” These will supplement the online education and webinars that it has already launched to address challenges related to the coronavirus.

In addition, the organizer said JCK exhibitors would have the opportunity to participate in JIS October, which is slated to run from October 13 to 16 in Miami.

“We will continue to listen to our customers and to facilitate the personal and business connections that our industry is built on, so we can all evolve and emerge stronger and better-connected than ever,” Bachmann added.

Source: diamonds.net

De Beers Pauses Botswana Mining

De Beers’ mining operations in Botswana have been on hold for more than two weeks amid a national lockdown, the company told Rapaport News.

Debswana, the company’s joint venture with the government, paused activities on April 2 when the coronavirus-related restrictions began, a De Beers spokesperson said Friday. The miner had not previously disclosed its full response to the Botswana lockdown, and will publish an updated production forecast in its operational results this Thursday.

Operations at Debswana are currently limited to essential services, with a small number of staff members still working.

De Beers’ current production outlook for 2020 is 32 million to 34 million carats — a plan that’s been in place since December, when it reduced its guidance due to inventory rebalancing taking place in the industry. It had previously expected to unearth between 33 million and 35 million carats for the year.

Botswana initially instituted a 28-day lockdown, and later extended the state of emergency for six months. Mining has received the status of an essential service, De Beers noted, adding that it was discussing how it could restart operations with health precautions in place.

“Debswana has been engaging with key stakeholders and considering the appropriate recommencement of operations, albeit at a significantly reduced level,” a company spokesperson said.

The country is De Beers’ largest source of rough diamonds, with the Jwaneng and Orapa deposits last year contributing 23.3 million carats of its global output of 30.8 million carats. The pandemic also forced it to cancel its March-April sight in Gaborone, the capital, as buyers were unable to attend or ship goods.

De Beers has also reduced the number of workers at Venetia, its only mine in South Africa, by 75% in response to a lockdown there. In addition, the company has introduced precautions at its Gahcho Kué mine in Canada’s Northwest Territories, including changing workers’ shift patterns to minimize travel.

Source: Diamonds.net

Alrosa achieves good first-quarter sales, maintains diamond output guidance

Russia-based diamond miner Alrosa produced eight-million carats of diamonds and sold 9.4-million carats in the first quarter of the year.

The company generated sales revenues of $904-million from rough and polished diamonds.

This was despite diamond production seasonally declining by 9% quarter-on-quarter, although year-on-year diamond production growth was 2%. The year-on-year growth was supported by increased production at the company’s Jubilee pipe, as well as at the Aikhal and international underground mines.

Alrosa says the average realised prices for gem-quality diamonds in the first quarter was $123/ct, which was down 17% quarter-on-quarter and flat year-on-year.

The company maintains its full-year production guidance of 34.2-million carats, but says sales volumes will depend on the Covid-19 epidemiological situation and respective measures taken globally.

Alrosa says the diamond industry started the year off in good shape as consumer sentiment had improved across key markets for diamond jewellery, while inventories at the midstream had normalised and polished diamond prices began to recover.

However, following closures of markets in China and Hong Kong in February, and then later in Europe and the US, demand started to weaken.

Alrosa says it might need to update its production and prices data during the year, depending on what happens in the market.

Source: miningweekly