News – Page 100 – The Diamond Certification Laboratory of Australia (DCLA)

Pandora Cuts 1,200 Jobs as Sales Drop

Pandora will push ahead with a total overhaul of its business, after sales weakened in the first quarter.

Global sales fell 6% year on year to DKK 4.8 billion ($720.5 million) for the January to March period, the Danish charm maker reported Tuesday. Revenue in the US slipped 12% in local currency to DKK 977 million ($146.5 million), while sales in China rose 15% to DKK 548 million ($82.2 million). Global net profit declined 31% to DKK 797 million ($119.5 million).

The company plans to lay off approximately 1,200 employees at its Thailand manufacturing facility. Those cuts are in addition to the 700 workers it dismissed from the factory in February. It will also reduce some workers’ hours, aiming to save a combined DKK 600 million ($90 million) in 2019.

Pandora attributed the weak first quarter performance to its unsuccessful consumer and marketing strategies. As part of a transformation, the company will offer fewer discount promotions, reduce its inventory, and minimize the design variations it carries in stores.

Additionally, the retailer plans to increase its marketing in certain countries, including the UK, Italy and China, to reach consumers more effectively. The campaigns will be consolidated through one advertising agency, which will provide Pandora with a clear brand, it said. The company has also recently launched new campaigns featuring celebrities and influencers.

The strategy shift, which began in the first quarter, “is progressing rapidly, and is creating a real transformation of our business, culture and organization,” said Anders Boyer, Pandora’s chief financial officer. “As expected, the first quarter was characterized by continued weak like-for-like [figures], further burdened by our deliberate commercial reset.”

During the quarter, the company opened a net eight concept stores, down from 39 in the same period last year. It plans to close 50 stores that were not making profits. Pandora expects sales to fall 3% to 7% this year, it said.

Source: Diamonds.net

Jennifer Lopez wore Harry Winston jewellery worth $8.8 million to the Met Gala

Jennifer Lopez attended the 2019 Meta Gala with her new fiancé Alex Rodriguez, and she was dressed in head to toe sparkles.

If her plunging Versace gown complete with a thigh high slit, iridescent platform heels, silver clutch, and shimmering headdress weren’t enough.

Jennifer Lopez was dripping in Harry Winston diamond jewellery which was worth $US8.8 million

Harry Winston’s “Purple Dragon Necklace,” which weighs in at a whopping 129.48 carats.

Pink Diamond Prices Firm in 1Q

Pink fancy-color diamonds outperformed other major color categories in price terms during the first quarter, the Fancy Color Research Foundation (FCRF) said.

“At a time of diamond-market uncertainty, fueled by growing white-diamond inventory and the emergence of lab-grown diamonds, most categories of fancy-color diamonds are showing continued pricing stability, with the pink segment posting slight price increases,” said Oren Schneider, an FCRF advisory board member.

Prices for pinks grew 0.5% quarter on quarter for the three months ending March 31, according to the FCRF, which released its quarterly Fancy Color Diamond Index (FCDI) last week. By contrast, overall prices of blue fancy-color diamonds, which previously held the top spot, declined 0.2% compared to the previous quarter. Yellows slipped 1.5%, causing the overall index for fancy-color diamonds to fall 0.2%.

“The color-diamond market as a whole is in a slowdown, following the hyper price rises of the past years,” added Alan Bronstein, president of the Natural Color Diamond Association. “Demand always goes through cycles where values rise and fall.”

Diamonds weighing 1 carat showed the best performance in both the fancy-yellow and fancy-intense-blue categories during the quarter, according to the FCRF. The segment was led by the 3- and 5-carat vivid-pink categories, which increased by an average of 3.1%.

In February, the FCRF predicted a rise in the price of yellow diamonds for 2019, as Dominion Diamond Mines’ Ekati deposit — one of the main suppliers of those stones — transitions from open-pit to underground mining. The group cautioned there would be a shortage of supply during the transition phase.

The Fancy Color Diamond Index tracks prices of yellow, pink and blue fancy-color diamonds in Hong Kong, New York and Tel Aviv.

Source: Diamonds.net

Signet Enters Lab-Grown Market

James Allen has launched sales of lab-grown diamonds, marking parent company Signet Jewelers’ entry into the synthetics market.

The e-commerce business, which Signet acquired in 2017, now gives consumers the option of “earth-created” or “lab-created” stones on its retail page. James Allen is offering lab-grown as center stones for engagement rings, promising “up to 30% more size for the same cost.” At press time, the prices of lab-grown on the site ranged from $450 for a radiant, 0.52-carat stone to $48,350 for an emerald-cut, 4.49-carat diamond.

All its lab-grown diamonds will carry grading reports from laboratories such as the International Gemological Institute (IGI) or the Gem Certification & Assurance Lab (GCAL). The colors available on the James Allen site range from D to J, while clarities span from internally flawless to SI2.

Analysts were expecting Signet to move into the lab-grown market, after Gina Drosos, its CEO, said last year it was assessing demand, and would position itself to offer the category if consumers wanted it. It has taken a different approach from De Beers, which launched its Lightbox fashion-jewelry line a year ago with a standard price of $800 per carat and no grading reports.

Mined diamonds are still “the traditional choice,” James Allen notes in the questions-and-answers section of its site. But it emphasizes that its lab-grown stones are chemically identical and look the same as naturals, and that they are graded to the same standards.

Signet views James Allen as an incubator for testing out ideas, Drosos observed in an investor call in December. Late last year, it launched a concept store for the brand in Washington, DC, featuring new retail technology.

Source: Diamonds.net

Argyle revenues soar to decade high as mine closure nears

Rio Tinto’s fading Argyle diamond mine looks set to go out on a high, after posting its best financial performance in years.

Diamond markets are notoriously opaque, and Argyle’s performance cannot be gleaned through the financial results Rio reports every six months.

But new filings with the Australian Securities and Exchange Commission (ASIC) reveal revenues at Argyle, which is scheduled to close in 2020, surged to their highest levels in a decade in 2018.

The $370.6 million of revenue generated was 26 per cent higher than in 2017 and was the highest revenue reported by Argyle since 2008.

The improved financial performance was not constrained to revenue; the $148.4 million of cash flow from operations was virtually double the 2017 result, almost quadruple the 2016 result and the best since 2015.

The revenue and cash flow surge came, perversely, in a year when Argyle processed 10 per cent more ore than in 2017, but produced 18 per cent fewer diamonds; a situation that normally implies higher unit costs and poorer financial performance.

It is understood the big increase in revenue was driven by higher sales volumes in 2018 compared to previous years.

Revenue was also boosted by a stronger US currency and improving prices for the pink diamonds Argyle produces, which are tipped to enjoy greater scarcity value as the mine’s closure draws near.

Higher diamond sales in a year when Argyle’s diamond production slumped highlights the sort of opacity that makes diamond markets difficult for investors to predict.

Diamond production likely to be lower
While Argyle’s closure in 2020 appears certain, it is unclear whether Rio has built a sufficient war chest of pink diamonds to continue its annual pink diamond tender beyond the end of the mine’s life.

Rio keeps diamond pricing confidential, but within the past year the company’s diamond boss, Arnaud Soirat, has pointed to recent public auctions in which Argyle pink diamonds sold for more than $US1 million per carat.

Argyle’s revenue and cash flow surge belied the $128.6 million loss before tax that was reported to ASIC last week by the Rio subsidiary that owns the mine.

That loss was heavily influenced by a $145.4 million non-cash expense related to the closure of the mine.

Diamond production at Argyle looks set to be lower again in 2019 if the first quarter is any guide; production in the three months to March 31 was 22 per cent lower than in the same period of 2019, and 13 per cent lower than in the final three months of 2018.

The rare insight to Argyle’s financial performance comes as Rio directors and executive management fly into Western Australia this week for the company’s annual meeting of Australian shareholders on Thursday.

Chairman Simon Thompson has urged shareholders to vote against a resolution put forward by climate campaigners, which would compel Rio to set targets for reduction of greenhouse gas emissions.

The resolution explicitly calls for reduction targets linked to scope 3 emissions; the emissions generated by the companies Rio sells its products to.

Such a target would include Asian steelmakers, which create significant emissions when they blend Rio’s flagship product, Australian iron ore, with coking coal to make steel.

Mr Thompson has argued that emissions generated by such customers are beyond the control of Rio, and therefore the company cannot set such targets.

Source: afr.com

ABC NEWS RADIO: How do you like your diamonds?

Diamonds that could only just fit in your hand have been unearthed in Botswana recently so overnights polished up their knowledge on what modern day diamond mining involves.

The modern day diamond competes with synthetic diamonds but Roy Cohen from the Diamond Grading Laboratory of Australia reckons they’re as popular as ever.

How does the cut change that value, what are Australian diamonds like and where can you buy the cheapest diamond in the world? Find out on this weeks talking topic about Diamonds.

ABC NEWS VIDEO

Diamond Miners Push Back on Ethics Claims

The major diamond miners have weighed in on the debate over which diamonds are more ethical, claiming their production uses less than one-third of the energy it takes to create a diamond in a lab.

The operations of companies that make up the Diamond Producers Association (DPA) emitted an average of 160 kilograms of carbon dioxide (CO2) per 1-carat of polished diamonds produced in 2016, according to a study commissioned by the DPA and carried out by Trucost ESG Analysis, which is part of S&P Global. That compared to the estimated greenhouse gas emissions of 511 kilograms of CO2 for the average 1-carat lab-grown polished stone.

A debate has ensued in recent years over which diamond is more environmentally friendly (or harmful), with many lab-grown-diamond companies claiming to have the greener product in their advertising. In April, the Federal Trade Commission (FTC) warned several synthetics producers against using claims such as “eco-friendly,” “eco-conscious” or “sustainable” without qualification.

“This independent research report breaks outdated stereotypes and misconceptions and identifies the next set of challenges that must be met to continue to evolve and improve as an industry,” said DPA CEO Jean-Marc Lieberherr in a statement on Thursday.

The DPA members have set goals to reduce their carbon footprint, while the DPA will monitor their progress in achieving the United Nations Sustainable Development Goals.

The report, titled “The Socioeconomic and Environmental Impact of Large-Scale Diamond Mining,” highlights the benefits to employees of DPA members, the impact those companies collectively have on the communities in which they operate and their environmental stewardship.

Together, the miners generate more than $16 billion in net socioeconomic and environmental benefits through their operations, Trucost reported.

Despite significant progress toward responsible and transparent practices over the past 15 years, the current reality of the diamond-mining sector remains largely unknown, the authors noted. “This report provides access into a highly scrutinized, yet largely misunderstood sector,” the report added.

The DPA consists of seven companies, with Alrosa, De Beers, Rio Tinto and Petra Diamonds participating in the study. Dominion Diamond Mines, Lucara Diamonds and Murowa Diamonds are the other members.

The Lab Grown Diamond Association did not reply to a request for comment from Rapaport News by press time.

Image: Rough and polished diamonds. (Diamond Producers Association)

Source: Diamonds.net

Christie’s to Sell Historic Golconda Diamond

Christie’s New York auction will feature a 17.21-carat diamond given to Queen Charlotte of Great Britain by a regional ruler in India.

The pear-shaped, brilliant-cut diamond, called Arcot II, was found in India’s Golconda region in the late 18th century. The stone, presented to the queen by the Nawab of Arcot, will go under the hammer at the Maharajas & Mughal Magnificence sale on June 19, the auction house said last week.

The stone is one of a number of Indian jewels from the Mughal period featured at the sale. The lots on offer span a period of more than 500 years.

“This landmark collection traces the history of Mughal jewels and objects to [the] present day, and represents the most significant collection of its type ever to come to auction,” said François Curiel, chairman of Christie’s Europe. “The collection begins in Mughal India, the most important dynasty that ruled the country, famous for its emeralds, diamonds, sapphires, rubies, jeweled weapons and objects that are bejeweled beyond belief.”

Christie’s will also offer the Mirror of Paradise, a 52.58-carat, D-color, internally flawless Golconda diamond, as well as carved Mughal emeralds ranging from approximately 10 carats to over 200 carats.

Other notable lots include the Imperial Spinel Necklace and sarpechs — traditional Indian turban ornaments. A diamond necklace originally from the collection of the Nizam of Hyderabad, featuring almost 200 carats of Golconda diamonds, will also be for sale.

The Mughal jewels are from the collection of the Al-Thani dynasty, the ruling family of Qatar. The auction house will preview the items between April 24 and June 18 in London, Shanghai, Geneva, Hong Kong and New York.

Image: The Arcot II diamond. (Christie’s)

Source: Diamonds.net

Diamond Trading Goes Online as Lucara Takes on Industry Goliaths

The opaque diamond trade may be ripe for disruption.

Lucara Diamond, which recently found the second-largest diamond in history in Botswana, is taking on industry giants such as De Beers and Alrosa PJSC with an online platform to replace the current physical auctions.

The service allows Lucara to match buyers’ requirements, not only saving jewelers the trouble of traveling to Botswana but also ending the practice of buying stones by the bucket. They typically can only use some, and then have to sell the rest on the secondary market.

“For the first time ever, manufacturers buy only what they want, they don’t have to carry all this extra inventory,” Eira Thomas, Lucara’s chief executive officer, said in an interview in Stockholm. “The large integrated jewelry companies don’t want to be in the business of secondary trading. They’re just trying to source diamonds for their own products.”

In a series of trials, Vancouver, Canada-based Lucara claims that prices were 8 percent over Lucara’s traditional market price. It’s now trying to bring other independent producers on board, with the aim of moving at least a portion of the $18 billion annual diamond trade onto its site called Clara.

Whether Lucara will be able to attract major producers to use its system remains to be seen. De Beers, the world’s biggest diamond producer, is famous for its tight control over the diamond market and has relied on its own system of selling gems for decades.

“If we can get to $1.5 billion transacted through the platform, the cash flow we generate from Clara will be as important as the cash flow we generate from the mine,” Thomas said. “We’re taking baby steps right now, but each quarter we’ll report, we expect the volume to increase.”

Clara incorporates blockchain technology, which is seen as a promising avenue for an industry that has been plagued by ethical problems, including the trade in so-called “blood diamonds” used to finance armed conflicts. Lucara is far from the only miner who has seen the benefits of the digital ledger in guaranteeing the provenance of its product.

De Beers has launched Tracr, a platform aiming to increase the traceability of diamonds using blockchain. That pilot program was joined by Russia’s Alrosa, another giant in the business, in October last year.

Lucara’s Clara uses similar technology, but its main purpose is to match buyers and sellers. While it’s difficult to judge Clara in an early stage, Ola Sodermark, an equity analyst at Kepler Cheuvreux, sees potential in the initiative. The key is to get more producers to join the platform, he said.

“Lucara’s own volumes aren’t sufficient to make this fly,” he said. “The question is whether they’re too early with this technology, or if the market is ready for it.”

Lucara was founded by Thomas in 2007, together with Catherine McLeod Seltzer and current chairman Lukas H. Lundin, whose family oversees a commodities empire that includes stakes in oil, gold and solar power across the globe. The Lundin family holds an 18 percent stake in the company through the investment company Nemesia Sarl.

Source: bloomberg

Document Outlining Cutting of Cullinan Headed to Auction

London—A history buff could soon be the owner of the original document outlining the cutting and cleaving of the historic Cullinan diamond.

At Bonhams’ London Jewels sale scheduled for April 30, the auction house will put on the block the historic document that facilitated the cutting of the world’s largest rough diamond.

Dated Jan. 29, 1908, the original manuscript is for the ‘Agreement for the Inspection of the Cullinan Diamond’ between the representatives of King Edward VII and London diamond brokers M.J Levy & Nephews.

This document brokered the handling and cutting of the 3,106-carat Cullinan diamond—which remains the largest gem-quality rough diamond ever discovered—by the renowned Asscher Company to create the nine principal Cullinan Diamonds, Bonhams said.

It appointed M.J Levy and Nephews as “inspectors” of the Cullinan and outlines the parameters and guidelines of how it had to be handled, as well as the duties of each party.

The auction lot includes the original documents as well as a paste replica of the Cullinan as it appeared in its rough form and two replica sets of the nine principal diamonds cut from the stone.

The lot is estimated to sell for between $2,600 and $3,900.

The Cullinan rough diamond was discovered near Pretoria, South Africa, in 1905. So large it was believed to be a piece of rock crystal instead of a diamond, the rough was named after Thomas Cullinan, chairman of the mine where it was found.

The stone initially failed to find a buyer and was eventually sold for £150,000 to the South African Transvaal Colony government in 1907, which then presented it to King Edward VII on his 66th birthday in November of that year as a symbol of South Africa’s loyalty to the Crown, Bonhams said.

After the king received the stone, he was advised by his private secretaries to consult London diamond brokers Messrs M.J. Levy & Nephews about the cutting of the rough given the complexity and risk of the task.

Arthur and Alexander Levy then brokered it to be cut and polished with Asscher in Amsterdam, which had just cut the 995.2-carat Excelsior Diamond in 1903.

An image from the cleaving of the Cullinan rough diamond by Joseph Asscher

Since it wasn’t possible to shape and polish the stone without splitting it, the responsibility fell to Joseph Asscher, the house’s most skilled cleaver, to do the task.

After studying it at length, Asscher created a 6.5-mm deep incision in the diamond over several days. Then, in February 1908, his first attempt to cleave it ended when the blade on his tool broke as soon as he struck the stone.

After making stronger tools, he tried again the following week, successfully cleaving the Cullinan rough into two parts—one weighing 1,977 carats and the other 1,040 carats.

These stones were further polished and cut in the months following to create nine main stones, 96 smaller diamonds, and several polished “ends.”

Those nine principal diamonds, named Cullinan I through Cullinan IX, now form part of the collection of the Crown Jewels and the collection of Her Majesty The Queen.

Cullinan I remains the largest polished white diamond in the world, weighing 530.20 carats. It sits on top of the Sovereign’s Sceptre.

The Cullinan II, weighing 317.40 carats, is set at the front of the Imperial State Crown, currently located in the Tower of London.

Bonhams said the agreement documents and paste replicas of the stones were handed down through the business and subsequent owners of M.J. Levy & Nephews.

The auction house said this is the first time they are being offered for sale on the open market.

Source: nationaljeweler