Michael Hill expects to open new Bevilles stores across Australia following its acquisition of the jeweler, with some locations to launch before the holidays.
“I am excited by the addition of Bevilles to the Michael Hill portfolio of brands, and our early insights only reinforce its complementary strategic fit and reaffirms the opportunity to grow the Bevilles brand and take its offering nationally,” Michael Hill CEO Daniel Bracken said last week. “Discussions are already well advanced to secure new store locations to open prior to Christmas and for entry into a new state market in the new year.”
The Australia-based retailer bought the 26-branch Bevilles in April for AUD 45.1 million ($30 million). It plans to take the jewelry chain international, with the hopes of achieving 80 shops across Australia, New Zealand and Canada by 2028.
Group revenue increased 6% to AUD 628.1 million ($423.7 million) for the full fiscal year that ended July 2. Sales in Australia grew 9% to AUD 331 million ($222.9 million) and were up 6% in New Zealand to NZD 132.4 million ($82 million). In Canada, revenue rose 0.4% to CAD 158.1 million ($119.7 million).
Michael Hill currently operates 172 stores in Australia, including Bevilles; 46 in New Zealand; and 86 in Canada.
A new office building in India’s diamond city Surat in Gujarat, where 90% of the world’s diamonds are manufactured has surpassed the Pentagon as the largest structure of the kind.
Built over 7.1 million square feet of floor space, the Surat Diamond Bourse (SDB) has a big leg up on the 6.5 million square feet headquarters building of the US department of defense in Arlington, Virginia. The Pentagon was the world’s largest building for 80 years before it got dethroned.
The 15-story structure, featuring a succession of nine rectangular structures spilling out from a central “spine,” cost a whopping 32-billion-rupee ($388 million) to develop and build.
Indian architecture firm Morphogenesis stopped and started construction over four years because over pandemic-related delays. The building is finally due to open its doors in November 2023, with prime minister Narendra Modi due to inaugurate it.
Quotable: Narendra Modi lauds Surat Diamond Bourse “Surat Diamond Bourse showcases the dynamism and growth of Surat’s diamond industry. It is also a testament to India’s entrepreneurial spirit. It will serve as a hub for trade, innovation and collaboration, further boosting our economy and creating employment opportunities.” Prime minister Narendra Modi, who was Gujarat’s chief minister from 2001 to 2014, quote-tweeted a video of the Surat premises yesterday.
Working in the Surat Diamond Bourse, by the digits 4,700 office spaces: Office spaces in the Surat Diamond Bourse, which can also double up as small workshops for cutting and polishing diamonds. The offices were all purchased by diamond companies prior to construction, project CEO Mahesh Gadhavi.
65,000: Diamond professionals, including cutters, polishers and traders, that can work on the premises at a given time. Besides offices, the workers also have access to dining, retail, wellness and conference facilities
9: Number of 1.5-acre courtyards with seating and water features that can serve as casual meeting places for traders
131: Number of elevators on the premises
7 minutes: The maximum amount of time it takes to reach any office from any of the building’s entry gates, according to Sonali Rastogi, co-founder of the Indian architecture firm Morphogenesis that designed the behemoth building. In a democratic move, the offices were assigned to business via a lottery system
3 times: How much bigger SDB is compared its counterpart in Mumbai, Bharat Diamond Burse (BDB)
400: The small number of merchants that were willing to move in during the touted November 2022 opening, which led to the opening being postponed. Mumbai’s Palanpuri diamantaires are staying put because they do not want to incur establishment cost, transport cost, and take on overheads of maintenance when the trading business is struggling.
Petra Diamonds’ sales dropped 44% for the full fiscal year as the miner recovered a lower proportion of high-value stones and pushed off its final tender due to low demand.
Revenue fell to $328.4 million for the 12 months ending June 30, the company reported Tuesday. Sales volume decreased 34% to 2.3 million carats.
The company, which operates the Cullinan, Finsch and Koffiefontein mines in South Africa, as well as the Williamson mine in Tanzania, attributed the decline to a drop in the number of large and exceptional diamonds it sold during the year. The segment contributed only $12.6 million in revenue for the year, compared to $89.1 million in fiscal 2022.
Petra also postponed its sixth and final tender of the financial year as a result of lower rough prices and deferred the sale of 75,900 carats of predominantly higher-value stones from its fifth tender, it explained. A drop in production also hit sales, as the miner had lower availability of rough to offer.
In the fourth fiscal quarter, from April to June, Petra’s rough prices grew 2% on a like-for-like basis versus the same period a year ago, it said. Meanwhile, the miner’s inventories increased to 715,200 carats at the end of the quarter as a result of the deferrals, up from 381,700 on June 30, 2022.
“Our strong balance sheet and flexible sales process enabled us to postpone the majority of our…rough-diamond sales [for the sixth tender] into fiscal year 2024 on the back of what we believe to be a temporary slowdown in demand for rough diamonds,” said Petra CEO Richard Duffy. “We continue to expect a supportive diamond market in the medium to longer terms as a result of the structural supply deficit, which will benefit our strong growth profile.”
Production fell 20% to 2.7 million carats for the fiscal year due to the recovery of lower-grade ore at Cullinan and Finsch. That total was just under the miner’s previous guidance of between 2.75 million and 2.85 million carats for the year.
Petra now expects output for the new fiscal year ending June 2024 to be between 2.9 million and 3.2 million carats, down from the 3 million to 3.3 million carats it previously forecast. It has also lowered its guidance for fiscal 2025 to the 3.4 million and 3.7 million carat range, rather than the 3.6 million to 3.9 million carats it originally estimated. The decrease is the result of a slower-than-expected ramp-up at both Cullinan and Finsch following a delay in work to extend the mines, Petra added.
The research documents by MRFR indicate that the “Synthetic Diamonds Market Research Report Information by Application, Product, Region, Type, and Manufacturing Process – Forecast Till 2032”, the Synthetic Diamonds market is predicted to grow substantially over the assessment timeframe from 2022 to 2032 at a healthy CAGR of around 7.80%.
The reports even share predictions regarding the market’s growing revenue share, which will likely reach USD 29.9 Billion by the end of 2032. As per the reports, the market was worth nearly USD 15.2 Billion in 2022.
The primary market factors accelerating market expansion include rising demand from the semiconductor and electronics sectors as well as increased demand for computer chips and other microchips used in many other types of electronics.
The increase in demand for synthetic diamonds from the semiconductor and electronics industries is the primary factor behind the growth of the global market for synthetic diamonds. The increase in disposable money among the general population benefits the market.
Watches of Switzerland’s group revenue soared 25% for the full fiscal year as it expanded its store network and demand for luxury timepieces rose.
The UK-based retailer achieved sales of GBP 1.54 billion ($2.02 billion) for the 52 weeks that ended April 30, the company said last week. That amount is a record for the firm and has placed it “significantly ahead” of where it expected to be when it released a long-term strategic plan in 2021, it explained.
Sales grew 10% in the UK and Europe to GBP 890 million ($1.17 billion), driven by the opening of 15 new UK showrooms, as well as its first in Germany. In the US, revenue jumped 52% to GBP 653 million ($855 million), with the company opening six mono-brand shops and a Rolex store. The US now represents 42% of total group revenue, the company noted. The rise was also the result of increased appetite for luxury watches, which continues to outpace supply. Watches of Switzerland’s client registration for timepieces is growing, as is the average selling price per piece, it said.
Profit for the period advanced 21% year on year to GBP 121.8 million ($159.5 million).
“Luxury watch sales grew 28% year on year, representing 87% of group revenue,” said Watches of Switzerland CEO Brian Duffy. “Luxury jewelry sales increased at a more modest 10% in the year, reflecting a tougher macroeconomic backdrop and focus on full-price sales. Following two years of exceptional performance, sales are significantly ahead of plan, by over GBP 200 million [$261.9 million].”
During the year, Watches of Switzerland also opened five shops in Sweden and Denmark, and a boutique in Ireland. In fiscal 2024, it will debut a flagship Rolex store on London’s Old Bond Street and a shop in Manchester, UK, as well as a joint venture with watch brand Audemars Piguet. The company expects revenue of between GBP 1.65 billion ($2.16 billion) and GBP 1.7 billion ($2.23 billion) for the full year.
A 29.52-carat pink diamond went for more than $8 million at South Africa-based Pioneer Diamond Tender House, the highest price for any stone the company has sold.
The fancy-vivid-pink, type II rough — named the Protea Pink after South Africa’s national flower of the same color — raked in $271,307 per carat, Pioneer said Wednesday.
A junior mining company recovered the diamond from a deposit on the banks of the middle Orange River, according to Lyndon de Meillon, a shareholder in Pioneer. The stone is believed to come from a 90 million-year-old Lesotho kimberlite that broke off and made its way down the river, where it got trapped in a terrace approximately 500 kilometers from its original location, he explained.
“This unique diamond…once again showcased why the alluvial diamond deposits of South Africa represent the highest and most consistent value-per-carat diamond supply in the world,” de Meillon added.
For the connoisseurs of crazy expensive vanity stuff here’s one from Russian luxury brand Caviar. An search iPhone 14 Pro Max, encrusted with a Graff snowflake necklace pendant.
Known as the Diamond Snowflake, the world’s costliest search iPhone was unboxed on a Russian YouTube channel recently.
It was last priced at 40 million rubles or USD 465,000. In Indian currency it would cost around INR 3.8 crores. A Lamborghini Huracan model costs around the same price in India.
Created in partnership with the British jewelry brand Graff, the company has only released three pieces of the priciest search iPhone ever made. Only two of the limited edition are left for sale now at the company’s website.
The Diamond Snowflake is made of 18k White Gold and 570 diamonds.
On the backplate of the search iPhone is a massive massive diamond pendant. It’s a Graff snowflake necklace made of white gold, and platinum, encrusted with marquise-cut diamond.
Another edition of this search iPhone is called the Crystal Snowflake (Swarovski Edition) with only 20 pieces for sale. It also mirrors its pricier version the Diamond Snowflake.
De Beers has sharply decreased its prices for select larger rough diamonds at this week’s sight, as the weak market has shown few signs of recovering.
The price cuts range from 5% to 15% in several categories for stones 0.75 carats and up, with an emphasis on 2-carat diamonds and larger, industry insiders told Rapaport News on Monday. Some of these goods already saw price reductions last month, they noted, while the 15% cuts are in a handful of sluggish categories that the miner left untouched in June.
De Beers has focused its adjustments on the lower-quality items for which demand has been especially slow, the sources said on condition of anonymity. Polished sales in SI to I2 clarities have slumped this year due to the overall weakness of US retail — the main market for this range — as well as competition from lab-grown diamonds.
The company also maintained its policy of allowing 30% buybacks for certain low-performing items, the industry sources said. Buybacks let sightholders sell a proportion of the rough they’ve purchased back to De Beers, allowing them to offload the stones that will generate the least profit. The limit is usually 10%.
De Beers declined to comment on the price changes.
The July sight — the sixth of the year — began Monday and runs through Friday in Gaborone, Botswana. It is the first sight since De Beers and the Botswana government announced a new 25-year mining license and a 10-year sales agreement that will see state-owned Okavango Diamond Company (ODC) gain access to 50% of the country’s rough over the course of 10 years.
The June session saw sales fall 32% year on year to $450 million after De Beers slashed prices of many categories above 1 carat. The negative trends that were present then have continued into July, with the seasonal US summer slowdown compounding the situation. Many manufacturers in India have lowered their polished production to around 50% capacity in response to low sales and tight margins. They have shifted to smaller, lower-value rough to keep factories running.
However, even a 15% price drop for rough is not enough to solve the problem, one executive at a sightholder company said Monday. “[Polished] prices have fallen more than that over the last couple of months. More importantly, there’s still no [foreseeable prospect] of sales. We are all still waiting for the US to wake up.”
Nick Selby will take on the role of interim CEO at Lucapa Diamond Company when Stephen Wetherall steps down as managing director at the end of the month.
Selby, who has been with the miner since 2017, is currently executive director of operations. He will lead the company while it searches for a replacement, Lucapa said Monday.
Wetherall will continue to work with Lucapa as an independent consultant following his exit, helping to further the miner’s diamond marketing and downstream initiatives. He joined the company — which operates the Lulo mine in Angola and the Mothae deposit in Lesotho — in 2016. Wetherall was instrumental in creating a manufacturing deal with Graff unit Safdico, and in Lucapa’s acquisition of the Merlin diamond project in Australia.
“I have thrived on the challenges put to me by the board and shareholders,” said Wetherall in the Monday statement. “We have together navigated the company successfully through a difficult pandemic, repaid all the project interest-bearing debt, successfully delivered and expanded two mining operations now generating solid margins, positioned the company for growth with future production from Merlin, and our kimberlite exploration program at Lulo is at an advanced and exciting phase. This is an appropriate time for me to take on other challenges.”
Lucapa has recovered a 180.87-carat Type IIa white diamond at its Lulo alluvial mine, in Angola.
It’s the second +100 carat diamond of the year so far. In February it found a 150-carat Type IIa D-color white diamond.
And it’s the 37th +100 carat since since the Australian miner began commercial production at Lulo in 2015.
Last November the 170.2-carat Lulo Rose, believed to be the largest pink diamond found in the last 300 years, was sold at tender for an undisclosed sum.
Lucapa, which also operates the Mothae mine, in Lesotho, has reported encouraging exploration results from its ongoing exploration program to discover the primary kimberlite source at Lulo.
Pic of the 180.87-carat Type IIa white diamond, courtesy Lucapa
