News – Page 55 – The Diamond Certification Laboratory of Australia (DCLA)

Lucara Secures $220M in Financing to Take Mine Underground

Lucara Diamond Corp. said it has secured $220 million in financing to help take the Karowe Mine in Botswana underground and extend its life by about 20 years.

Karowe is responsible for producing some of the most significant diamonds recovered in recent years, including the 1,109-carat “Lesedi La Rona,” which Graff bought for $53 million, and a 1,758-carat diamond that Louis Vuitton is turning into jewelry.

The credit-approved senior debt facilities include two tranches: $170 million to go toward the development of the underground mine and $50 million to support the ongoing operation of the open pit.

The underground expansion has an estimated capital cost of $514 million and is expected to take five years. The balance of development capital for the project is expected to come from cash flow from the mine’s ongoing open-pit operations.

In a statement announcing the financing, Lucara President and CEO Eira Thomas called securing the financing “an important achievement for Lucara and a strong endorsement of our underground expansion plans.”
She said the loans will supplement the cash flow from the open-pit portion of Karowe for the next five years and will extend the life of the mine from 2025 to at least 2040.

The five lenders on the $220 million financing facility for Lucara are: ING Bank N.V., Natixis, the London branch of Societe Generale, Africa Finance Corp., and Afreximbank. Thomas described them as having “significant mining and metals track records and experience in Africa.”

Closing on the facilities is subject to completion of definitive documentation and the satisfaction of certain terms and conditions, including Know Your Customer (KYC) checks.

The target closing date for the financing package is mid-2021, with financing expected to be in place by the second half of the year.

Lucara made the financing announcement the day before it released its first-quarter 2021 results.

Revenues totaled $53.1 million, or $579 per carat sold, for the miner in Q1. Net income was $3.4 million.

That is a significant improvement over Q1 2020, when the onset of the pandemic limited sales to $34.1 million and caused Lucara to record a loss of $3.2 million.

First-quarter 2021 results also are up when compared with 2019, when Lucara reported revenues of $48.7 million, or $512 per carat sold. Net income for the latter, however, was higher at $7.4 million.

The company said overall, the diamond market started 2021 in its healthiest position in five years following strong holiday seasons in the United States and China, and careful rough supply management by producers, which has helped to recalibrate polished inventories.

Source: nationaljeweler

Gem Diamonds Unearths 370ct. Rough

Gem Diamonds has recovered a 370-carat rough stone in Lesotho, the second over 100 carats in one week.

The “high-quality,” white, type II diamond came from the company’s Letšeng mine, known for producing large diamonds, it said Monday. The new find follows the discovery of a high-quality, 254-carat, white, type II diamond the miner reported on May 4.

The miner has unearthed three 100-carat-plus diamonds so far this year, including a 146.9-carat rough in January. Although output of large stones was sluggish in the first quarter as the company mined lower-value areas, it is still ahead of last year’s discovery of two stones greater than 100 carats by the middle of May.

In 2020, Gem Diamonds produced a total of 16 diamonds larger than 100 carats.

Source: Diamonds.net

Natural-Diamond Trade Hits Back at Pandora

Leading trade organizations have lashed out at Pandora’s recent statements about lab-grown stones, claiming the retailer misrepresented natural diamonds and caused harm to the industry.

Pandora announced it would no longer sell mined diamonds and would instead stock synthetics, linking the decision to its environmental goals. The launch of a lab-grown line will help “transform the market for diamond jewelry with affordable, sustainably created products,” the Danish jeweler asserted last week.

Pandora’s proclamation wrongly positioned lab-grown as an “ethical choice versus natural diamonds,” five jewelry groups said in a joint statement Friday. The signatories were the Responsible Jewellery Council (RJC), the Natural Diamond Council (NDC), the World Jewellery Confederation (CIBJO), the World Diamond Council (WDC) and the International Diamond Manufacturers Association (IDMA).

The diamond industry employs tens of millions of people around the world, the organizations pointed out. The communities that benefit from the sector need its support “more than ever” given the hardship resulting from Covid-19, they added.

“The misleading narrative created by the Pandora announcement implying the natural-diamond industry is…less ethical and the impetus behind Pandora’s move to lab-grown diamonds, particularly given the inconsequential [quantity] of diamonds Pandora features in its collections, can have unintended but substantial consequences on communities in developing nations,” the groups said. “The industry organizations have called upon Pandora to support communities by correcting the record.”

Pandora used mined diamonds in about 50,000 of the 85 million pieces it created in 2020, it said.

Pandora was not immediately available for comment.

Source: Diamonds.net

Largest ever Russian diamond to be auctioned at Christie’s

100.94 carat D colour, internally flawless,
christies, — *100.94 carat D colour, internally flawless rectangular step-cut diamond*

Alrosa Spectacle, a 100.94 carat diamond that is thought to be the largest ever cut in Russia, will be auctioned in Geneva later this month.

The diamond could fetch between 12 million and 18 million Swiss francs ($13.32 million – $19.96 million) when it goes under the hammer at Christie’s May 12.

“This fantastic 100 carat D color diamond was cut from a rough stone that originally weighed more than 200 carats. It was called the Sergei Diaghilev rough diamond and it was mined in 2016,” Marie-Cecile Cisamolo, a specialist in the auction house’s jewelry department, said.

“Between the rough and diamond that we’re offering today, it took one year and eight months to cut into this perfect stone.”

The diamond is one of 144 lots on offer in the sale, which also includes rings, earrings, brooches and other pieces made with diamonds, sapphires and rubies.

Source: dailysabah

Fancy-Color Price Index Rebounds

Prices of fancy-color diamonds increased in the first quarter as the American market showed renewed demand for high-end products, according to the Fancy Color Research Foundation (FCRF).

The group’s Fancy Color Diamond Index gained 0.3% compared with the previous three months, the organization reported Thursday. Prices of blue fancy-color diamonds jumped 0.5%, while pinks increased 0.4%, outweighing a 0.2% decline in the yellow category.

“As the USA rebounds from Covid-19, we are witnessing an uplift in spirits, which in turn affects the demand for luxury goods,” said David Shara, founder and CEO of Optimum Diamonds, one of the companies that supplies pricing data to the FCRF. “We see now, and will see, a continuous rise in prices of fancy-color diamonds.”

The strongest items during the quarter were 2-carat, fancy-intense colored diamonds, for which prices advanced 2.6%, following by 3-carat, fancy-intense stones, which saw a 1.9% increase. The weakest was the 2-carat fancy category, which witnessed a drop of 1.1%.

The fancy-color market ground to a halt during the peak of the Covid-19 pandemic last year, forcing the FCRF to hold off publishing its index for the first and second quarters. Prices in the fourth quarter were 0.8% lower than during the same period of 2019.

Source: Diamonds.net

De Beers Sight Sees Strong Demand, Low Supply

Rough-diamond demand was robust at this week’s De Beers sight despite the ongoing Covid-19 crisis in India, customers reported.

Manufacturers snapped up the limited supply in anticipation of rough shortages, sources told Rapaport News. Sales will still be 10% to 25% lower than the previous cycle in March because of reduced availability, they estimated. That translates to a sight value of $330 million to $400 million.

“People are buying from the miners and the big sources, thinking that there will probably be tenders that will be canceled,” a sightholder said. “There is the perceived idea that there’s going to be a shortage in certain goods. People are as eager to buy rough as they were four weeks ago.”

De Beers is not offering any ex-plan goods — those over and above customers’ prearranged allocations — the sources added. The miner has fewer diamonds available for clients after reducing its inventories during a strong first quarter for the rough trade, when it sold 13.5 million carats against production of 7.2 million carats. It has suffered operational difficulties at some of its Botswana deposits, exacerbated by a temporary shutdown at its Gahcho Kué mine in Canada.

“If De Beers offered 20% more [goods at the sight], I think the market would eat it up,” a rough-sector insider commented.

Less manufacturing

While India’s diamond and jewelry sector has received permission to operate during the country’s several coronavirus wave, manufacturing levels have slumped by between 10% and 50% in the past month. This has resulted from capacity restrictions and absenteeism, with smaller sizes seeing a sharper downturn.

Companies that manufacture larger goods operate in factories with more space for social distancing and are able to retain workers by offering higher pay, a sightholder explained. Many employees who produce smaller stones have left Surat and returned to their hometowns for health reasons.

“My production is down by a little less than 10%, but for people who are in smalls, their production has been severely hit, and is probably down by more than 30%,” said an executive at a large-stone manufacturer.

In line with this, the market for large rough has survived better than the small-stone segment, sources explained.

“Anything in [0.75 carats] or up, it’s in big demand,” a customer noted. “You can sell whatever you want.”

Meanwhile, polished demand has strengthened as companies anticipate lower availability alongside steady retail sales. A backlog at the Gemological Institute of America (GIA) has also affected the supply situation, with the turnaround time standing at around a month for the Mumbai laboratory and a little more in Surat.

“Due to the supply scarcity, people are stocking [up on] some of the goods, so demand is high, and will remain strong for a month or so,” another manufacturer said.

India’s virus outbreak has seen activity shift to other global centers. Many large manufacturers relocated their buying teams to Dubai before travel restrictions went into effect, enabling them to continue obtaining rough for their factories, reported Trans Atlantic Gem Sales (TAGS), a tender house located in the emirate.

New contract

De Beers’ weeklong May sight, its fourth of the year, began on Monday, featuring viewings in Dubai, Antwerp and Tel Aviv. The session is also the first under a new supply contract that came into effect on April 1.

The agreement sees the miner offer proportionately more goods to manufacturers rather than dealers in an effort to limit the reselling of boxes. Sightholders expected sluggish rough trading on the secondary market this month as a result.

Certain assortments have also changed, with 8-grainer (2-carat) rough now forming part of a category of larger stones ranging from 2 carats upward, sightholders noted. The size was previously in a 4- to 8-grainer (1- to 2-carat) box, which will now become 4- to 6-grainers (1 to 1.50 carats).

“This was focused both on responding to sightholders’ commercial needs and ensuring we have the most coherent offering for beneficiation customers,” a De Beers spokesperson said.

Customers forecast stable pricing at the sight following successive increases from December to February.

Source: Diamonds.net

Gem Diamonds recovers high quality 254 carat white diamond at Letšeng

Gem Diamonds has announced the recovery of a high quality 254 carat Type II rough diamond — **254 carat Type II** Rough Diamond

Gem Diamonds has announced the recovery of a high quality 254 carat Type II, white diamond, from the Letšeng mine in Lesotho, the highest dollar per carat kimberlite diamond mine in the world.

“It is pleasing to see that carat production during the Q1,2021 is up some 11% on the same period in 2020 and the average price of US$1 630 per carat is also slightly up on Q1,2020,” said CEO, Clifford Elphick in last month’s Q1,2021 report.

“Although the production from the mining mix was not as impressive as the second half of 2020, with fewer large diamonds recovered due to the areas accessed under the mining plan, prices achieved on a like for like basis remained strong for Letšeng’s high value diamond production.

“It is anticipated that the mining mix should improve over the coming months as the richer parts of the Satellite pit are accessed in accordance with the mine plan.”

Source: miningreview.com

Pandora Taps Lab-Grown, Drops Mined Diamonds

Pandora has launched its first lab-grown jewelry line and pledged to cease using mined diamonds in any of the company’s pieces.

The Danish jeweler will introduce the collection, Pandora Brilliance, in the UK on May 6, before debuting it globally in 2022, it said Tuesday. Pandora believes offering synthetics will make its products more accessible to a wider audience looking for more affordable and sustainable diamond jewelry, it explained.

“Pandora continues its quest to make incredible jewelry available for more people,” said Pandora CEO Alexander Lacik. “[Pandora Brilliance] is a new collection of beautifully designed jewelry featuring lab-created diamonds. They are as much a symbol of innovation and progress as they are of enduring beauty and stand as a testament to our ongoing and ambitious sustainability agenda. Diamonds are not only forever, but for everyone.”

As part of its effort to be carbon-neutral, Pandora will use synthetic diamonds that have been grown with more than 60% renewable energy. The jeweler expects to use stones made using 100% renewable energy by the time it launches the line globally, it noted.

The new collection includes rings, bangles, necklaces and earrings, each featuring a single lab-grown diamond ranging from 0.15 to 1 carat, with prices starting at GBP 250 ($347), Pandora added.

Source: Diamonds.net

Give us Back the Crown Jewel Diamonds, says South African Politician

Britain must return two Cullinan diamonds from its crown jewels, says a member of South Africa’s parliament.

Mbusiyseni Ndlozi, of the left-wing opposition party Economic Freedom Fighters (EFF) tweeted: “Expropriation of the Queen’s crown without compensation: we want our diamonds back!” A tweet claimed the gems had a combined value of $5bn.

The Cullinan I (Star of Africa), a 530.2 carat pendeloque-cut diamond, is set as the main stone in Queen Elizabeth II’s Sceptre with Cross.

It was cut from 3,106.75-carat Cullinan Diamond, unearthed at the Premier Mine in Pretoria, South Africa, in 1905, and presented by the Transvaal provincial government as an extremely generous birthday gift to Britain’s King Edward VII.

Among the other gems cut from it is The Cullinan II (Second Star of Africa) which weighs 317.4 carats and which is set in the Imperial State Crown.

Source: IDEX

Tiffany Launches Diamond Engagement Rings for Men

For the first time in its history, iconic New York jeweler Tiffany & Co. has launched engagement rings for men.

This May, Tiffany unveils the Charles Tiffany Setting, a collection of solitaire men’s rings with sizable round-brilliant and emerald-cut diamonds measuring up to 4.3 carats.

Tiffany, which did more than $4 billion in jewelry sales last year, is on the cusp of a new era. In January, the company was acquired by the luxury-goods behemoth LVMH for $15.8 billion, and now the iconic Blue Box brand belongs to the French. And, after nearly 180 years in business, the jeweler is finally embracing the idea of diamonds for all.

“Why not diamonds for men?” asks Frank Everett, senior vice president, sales director for Sotheby’s luxury division in New York and a man known for his own collection of jeweled and diamond brooches. “Most men love diamonds but haven’t necessarily thought about applying them in their own jewelry.” While there’s always been a segment of men who favored a diamond pinkie ring, Everett says that men’s diamond rings were especially popular in the late ’70s and ’80s, but then they faded out.

He predicts Tiffany’s new engagement rings will help create a greater market for men’s diamond rings. “Once men break the ice and wear a diamond, it becomes comfortable and natural,” explains Everett.

Source: wsj.com