News – Page 64 – The Diamond Certification Laboratory of Australia (DCLA)

$27M Pink Diamond Sets Record at Sotheby’s

Alrosa’s Spirit of the Rose has achieved the highest price for any purple-pink diamond, selling to an anonymous bidder for nearly $27 million at Sotheby’s Geneva.

The oval modified brilliant-cut, 14.83-carat, fancy-vivid-purple-pink, internally flawless, type II stone, named for the famous Russian ballet, sold for $26.6 million, beating its low estimate of $23 million. The diamond, which fetched $1.8 million per carat, led the Magnificent Jewels and Noble Jewels live auction Wednesday, which garnered $52.2 million in total, Sotheby’s said.

The purchase comes on the heels of the recent closure of Rio Tinto’s Argyle mine in Australia, which produced more than 90% of the world’s pink diamonds. Prices for stones of that color are likely to soar in the coming years, experts have noted.

“The Spirit of the Rose caught the imagination of everyone who had the chance to see it,” said Benoit Repellin, head of the Sotheby’s Geneva Magnificent Jewels auction. “With its size, beautiful color, perfect cut and oval shape, it is a wonder of nature, steeped in Russia’s century-long diamond tradition and cultural heritage. It fully deserves the price achieved tonight, which is also testament to the growing appreciation and awareness of the great scarcity of pink diamonds around the world.”

Sotheby’s also saw strong prices for white diamonds at the auction, with 10 out of 11 stones on offer selling above their estimates. A cushion-shaped, 18.03-carat, D-color, flawless, type IIa diamond fetched $1.9 million against a high estimate of $1.1 million, while a pear-shaped, 102.41-carat, light-brown diamond of VVS2 clarity brought in $1.3 million, exceeding its high valuation.

Noble jewels were in demand as well, Sotheby’s said, led by a Colombian emerald and diamond parure from the collection of the first Marquis de Guirior, viceroy of New Granada and viceroy of Peru. That piece also surpassed its high estimate, fetching $1.1 million.

Source: Diamonds.net

Lucara recovers 998Carat Rough Diamond

The Karowe mine has produced a 998-carat diamond, the latest in a string of large rough stones from the lucrative deposit in Botswana.

Lucara Diamond Corp., which owns Karowe, will work with manufacturing partner HB Antwerp to assess how to maximize value from the rough, the miner said Wednesday. The unbroken, high-white, clivage stone — meaning it needs to be split before further processing — came from the EM/PK(S) unit of the site’s south lobe, which has yielded some of the world’s biggest and most famous diamonds.

“Lucara is extremely pleased with the continued recovery of large, high-quality diamonds from the south lobe of the Karowe mine,” said CEO Eira Thomas. “To recover two [500-carat-plus] diamonds in 10 months, along with the many other high-quality diamonds across all the size ranges, is a testament to the unique aspect of the resource at Karowe and the mine’s ability to recover these large and rare diamonds.”

The EM/PK(S) area produced the 1,109-carat Lesedi La Rona in 2015, as well as the 1,758-carat Sewelô, which HB bought in January this year in collaboration with luxury brand Louis Vuitton.

The Belgian manufacturer later agreed to purchase all of Lucara’s rough above 10.8 carats for the remainder of the year. Last week, Lucara announced the sale of a 549-carat diamond from the same high-value patch of Karowe, with HB and Louis Vuitton again partnering on the stone.

The arrangement with HB prevented a heavier decline in Lucara’s sales in the third quarter, the first period in which income from the partnership started appearing in the miner’s top line.

Group revenue fell 9% year on year to $41.3 million in the three months ending September 30, reflecting Lucara’s decision not to hold its usual tenders of stones above 10.8 carats, the company reported Wednesday. Instead, it sold 5,633 carats through the HB partnership, with sales taking place approximately twice a month, while the miner’s online selling platform, Clara, boosted sales of smaller goods.

Total sales volume fell 3% to 112,943 carats, with the average price down 6% to $365 per carat. The company’s net loss deepened by 35% to $5.4 million.

“Lucara is now receiving regular, predictable revenue for its [10.8-carat-plus] diamonds using a superior pricing mechanism based on estimated polished outcomes less a commission and the cost of polishing,” Thomas added.

Source: Diamonds.net

De Beers says recovery to Extend – Well Beyond 2020

The diamond sector’s rebound from the Covid-19 crisis will feature ups and downs that will continue into next year at least, De Beers predicted.

“The demand recovery is not expected to be linear, particularly as localized lockdowns take place,” De Beers explained Monday in its annual Diamond Insight Report. “Retailer expectations for the second half of the year are mixed, with more optimism in the US but muted sentiments in India and the Far East.”

The pandemic severely hit Chinese demand in the first quarter of this year and US sales in the second quarter, with the recovery likely to “extend well beyond 2020,” the company noted. The impact of Covid-19 on the global economy and the second wave of lockdowns in the fourth quarter have further harmed consumer spending, it added.

“The consequences of these events will determine the short to medium-term outlook,” De Beers added. “However, a weakening US dollar could offset some of the softness in demand in local currencies.”

The pandemic dented the positive trends that were visible at the end of 2019, De Beers said. Diamond-jewelry sales to Chinese consumers slid 45% year on year in the first quarter of 2020, and by around a third for the entire first half, the company estimated. The second-quarter recovery was “tentative,” mainly benefiting established brands and online sales, it added.

In the US, sales dropped about 40% in the second quarter of 2020, and by just under 20% for the first half. There was “evidence of rising sales” among independent jewelers and chains, as well as online, in June and the third quarter, the company continued. Demand in India dropped by more than 30% in the first half, reflecting a slump of nearly 50% during the April-May lockdown.

In 2019, global diamond-jewelry demand increased 0.5% to $79 billion — a weaker growth figure than in previous years as the strong dollar dented sales in China. Demand rose 4% in the US and 3% in Japan, offsetting weaker figures in other markets. The US expanded its share of the polished-diamond market to 48%, from 46% in 2018, while China slipped to 15% from 16%.

The Chinese yuan depreciated against the dollar in 2019 amid a trade war between Beijing and Washington, DC. In local-currency terms, demand from Chinese consumers climbed 1%.

Source: Diamonds.net

6.70 ct Zimmi Yellow Diamond could Fetch $700,000

A rare 6.70-carat VS1 natural fancy deep yellow diamond from the famous Zimmi mine, in Sierra Leone, could fetch as much as $705,000 at auction.

Canary yellow diamonds from Zimmi can command double the price of other fancy yellows because of their uniquely high color saturation levels. Yellow Zimmi stones over five carats are extremely rare.

This gem will lead the Tiancheng International Jewellery and Jadeite Autumn Auction 2020 in Hong Kong on 28 November.

Also at the sale is a pair of Zimmi natural fancy deep yellow diamond earrings 3.03 carat and 3.01 carat with an estimate of up to $320,000.

The Zimmi mine is in the heart of the rainforest region of Sierra Leone where the Mano river marks the border with Liberia.

Yellow diamonds occur when a single nitrogen atom replaces a carbon atom, absorbing the violet and blue light.

Source: IDEX Online

Arkansas man unearths 4.49-carat gem at Crater of Diamonds

Steven McCool of Fayetteville, Ark., found a 4.49 carat sparkling, canary yellow diamond during his recent trip to Crater of Diamonds State Park. The discovery was the third largest diamond found at the park so far this year. Photo courtesy of Arkansas State Parks

An Arkansas man visited the state’s Crater of Diamonds State Park and discovered a 4.49 carat sparkling, canary yellow diamond the third largest diamond found in the park this year.

Steven McCool, of Fayetteville, said he had decided to spend the day at the park since recent rains had made for optimal diamond hunting conditions, and he was on his 11th sifting bucket of the day when he spotted something just 30 minutes before the park closed.

“As my eyes were panning to it, I was thinking it could be an amber piece of glass like an old Coke bottle,” McCool said. “Once I focused on it though, I knew it was a diamond. I was like ‘No way! No way!'”

McCool took his discovery to the diamond identification table, where his suspicions were proved correct.

“Mr. McCool’s find is a 4.49 carat sparkling, canary yellow diamond that is about the size of a jellybean and seems to have great clarity. It is a stunning diamond,” Crater of Diamonds State Park Assistant Superintendent Meghan Moore said.

Officials said it was the third largest discovery so far this year.

McCool dubbed his discovery the BamMam Diamond, in honor of his children’s initials.

“What’s more precious than a precious gem? My children. So, I named it after my children and the name will stay with the diamond forever,” he said.

“I called my son afterward and asked him if he remembered what Thanos’ Mind Stone looked like, and told him I found one!”

Source: upi.com

Louis Vuitton Buys 549ct. Rough from Lucara

Lucara Diamond Corp. has sold a 549 carat diamond to Louis Vuitton through a partnership that will see the luxury retailer craft bespoke pieces to match client requests.

“In line with their long tradition of personalization, Louis Vuitton envisages. the ultimate personalized high jewelry experience, and the opportunity to create a truly unique gem, a storied family heirloom,” Lucara said Wednesday. “In this way, the client will be involved in the creative process of plotting, cutting, polishing and becoming part of the story that the stone will carry with it into history.”

HB Antwerp will manufacture the stone, which is the fourth largest in the history of Botswana. Lucara will receive a purchase price based on the estimated polished outcome, which HB will determine using scanning and planning technologies. Louis Vuitton will pay the miner more at a later stage if the final polished price exceeds this estimate, while subtracting manufacturing costs, Lucara noted.

Lucara recovered the 549 carat, unbroken diamond, which is of “exceptional purity,” from the high value EM/PK(S) unit of the south lobe of its Karowe mine in February. It has named the stone Sethunya, which means flower in Setswana.

The miner sold the 1,758 carat Sewelô rough, Botswana’s largest diamond, into the partnership with Louis Vuitton and HB in January.

“We are extremely pleased to be building on the groundbreaking partnership established for the manufacturing of the Sewelô earlier this year,” said Lucara CEO Eira Thomas. “[Louis Vuitton and HB Antwerp will] transform Sethunya. into an extraordinary, bespoke, polished diamond collection, catering exclusively to the desires of Louis Vuitton’s global customer base.”

Source: Diamonds.net

Rio Tinto closes Argyle diamond mine after 37 years

Pink diamonds, already rare, are about to get scarcer as Rio Tinto has closed its iconic Argyle diamond mine, the world’s biggest and the main global source of high-quality pink diamonds.

Since opening its doors 37 years ago, the Western Australia mine produced 865 million carats of rough diamonds and became the source of about 90% of the world’s prized rose-to-magenta hued stones.

The Argyle ore body, a single pipe known as AK1, was discovered in October 1979. Alluvial operations began in 1983, open pit mining kicked off in 1985 and the mine became a fully underground operation in 2013.

Today, Rio has mined the very last of these unique diamonds from the site, located within the ancient Matsu Ranges more than 3,000 km north of Perth.

“Fifty years ago there were very few people who believed there were diamonds in Australia even fewer could have foreseen how the Argyle story would unfold,” Rio Tinto’s chief executive of Copper and Diamonds, Arnaud Soirat, said in a statement.

“To arrive at this final chapter has required vision, courage and determination to overcome significant challenges to enter new territory in diamond exploration, mining and marketing,” Soirat added.

The closure of Argyle will remove about 75% of Rio’s diamond output, yet the impact on the miner’s earnings will be negligible. Diamonds bring in only about 2% of its earnings, while iron ore the company’s main commodity accounts for almost 60%.

The operation will now undergo decommissioning and rehabilitation, which is expected to take five years. After that, Rio will monitor the site for a period yet to be defined.

End of an era

Andrew Wilson, general manager of Argyle, said the mine transformed the diamond sector since its opening, supplying gems for both ends of the market.

“A new chapter will now begin as we start the process of respectfully closing the Argyle mine and rehabilitating the land, to be handed back to its traditional custodians,” he said.

Argyle was Australia’s first large-scale diamond operation, pioneering the fly–in fly–out model, and seen as an opportunity for a workforce drawn from across the nation.

Rio Tinto closes Argyle diamond mine after 37 years — Forty years ago, in the Kimberley region of Western Australia, four diamonds in a dry creek bed ultimately led Rio’s geologists to a massive diamond deposit.

It also triggered the creation and adoption of new technology and exploration methods to make the search for diamonds more efficient across the rugged and remote Kimberley landscape.

At its peak, Argyle churned out 40% of the world’s diamond output, which made it the biggest producer by volume.

Pricy gems

Analysts and auctioneers alike expect prices for pink diamonds to go up and, potentially spur exploration.

Pink stones have already been fetching record prices in the past few years and the closure of their main source could see that trend strengthen.

The “Pink Star” went for $71.2 million at Sotheby’s Hong Kong in April 2017, setting a record for diamonds sold in auctions.

In 2018, the 18.96-carat Pink Legacy fetched $50 million at Christie’s auction house, breaking the world record for price paid per carat for a pink diamond at auction.

Christie’s to auction largest, finest pink diamond in its history — The Pink Legacy diamond.

At Sotheby’s Hong Kong 2019 sale, one of the star pieces described as an “exquisite 10.64 carat vivid purplish pink diamond” sold for just under $20 million.

Rio Tinto’s own data show that prices for their Argyle pink diamonds jumped by 500% from 2000 to earlier this year.

Source: mining.com

Rio Tinto Ends Mining at Argyle

Rio Tinto will dig the last diamonds up from the ground at its Argyle deposit in Australia on Tuesday, marking the end of an era in the industry.

The company will continue to sift through ore at the adjacent processing plant until December, and will hold the final rough sale at the end of that month, a company spokesperson said.

Rio Tinto first began operations at Argyle in 1983, with the site since becoming the world’s largest diamond mine by volume, producing more than 825 million carats of rough over its lifetime. The deposit is most famous for its colored diamonds, with more than 90% of the world’s rare pink and red diamonds originating from the mine, according to Rio Tinto.

Those pink diamonds take longer to process than general run-of-mine goods, the company noted. Rio Tinto will continue to sell them into the coming year, and will hold its final Argyle Pink Diamonds Tender in 2021.

Once Rio Tinto completes the final production from Argyle, it will undertake a decommissioning, dismantling and rehabilitation process that will last approximately five years.

Source: Diamonds.net

LVMH’s $16b Tiffany takeover is back on

The largest deal in luxury is back on after New York’s famed jeweller Tiffany agreed to a slightly reduced offering price from LVMH in Paris.

LVMH will now pay $US131.50 for each Tiffany share, putting the total price tag at $US15.8 billion ($22.5 billion), down from the $16.2 billion that was first offered earlier this year.

Having gotten the discount, LVMH's plans to buy Tiffany's are back on the cards. — Tiffany’s

The owner of Louis Vuitton, Christian Dior, Fendi along with a basket of wine and champagne brands, appeared to walk away from the acquisition last month after it said the French government had pushed for a delay because of the threat of proposed US tariffs. But the reasons for its cold feet seemed to shift, and there was pressure from investors on both sides to make a deal happen.

Rumours that the two luxury companies had rekindled talks began to surface in recent days.

“We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany,” LVMH’s billionaire CEO Bernard Arnault said in a prepared statement on Thursday.

Tiffany & Co’s flagship store in Sydney. The company has hired advisers to review LVMH’s offer but has not yet responded to it

Tiffany sues LVMH for reneging on $22b deal as France steps in
Tiffany, with its famed blue boxes, has in recent years attempted to regain the luster of the “Breakfast at Tiffany’s” era as its customer base ages.

It’s shifted its focus to younger shoppers and made a significant push online. The deep pockets of LVMH could go a long way in helping that transformation along.

LVMH, led by billionaire Arnault, a consumate dealmaker, believes Tiffany will strengthen its position in high-end jewellery and in the US market.

LVMH is also making a bet on China’s economy, where Tiffany has been expanding.

The buyout has been approved by the boards of both companies, and it’s expected to close early next year.

Source: SMH

Blue Nile to Sell Lightbox Lab-Grown Diamonds

Blue Nile has launched an exclusive line of Lightbox lab-grown diamond jewelry, its first foray into synthetics in its 21-year history.

De Beers-owned Lightbox seemed like the obvious choice for a partner, given the alignment of the two companies’ perspectives, Blue Nile CEO Sean Kell told Rapaport News Thursday.

“We’ve been watching the lab-grown diamond market for some time. We think both natural diamonds and lab-grown diamonds have a place in the market,” he noted. “When we first discussed stepping into the lab-grown space, Lightbox was the only brand partner that came to mind.”

The online jeweler’s partnership with the lab-grown brand is an effort to offer a greater range of products to its customers.

“The launch of the Blue Nile Lightbox collection…now adds even more variety, quality and value for our customers as we head into the new year,” Kell said. “[This] will further expand and transform [our] product assortment to meet the needs of evolving consumers in the jewelry space.”

The collection will feature new and exclusive styles of jewelry, including earring, pendants, bracelets and rings, set with white, blue or pink lab-grown diamonds in 14-karat white or yellow gold. The pieces, which range from $600 to $1,750, will be available both online and in Blue Nile’s newly launched and soon-to-open showrooms, Kell noted.

While Blue Nile’s Lightbox collection will feature fashion jewelry, it will not include engagement rings, for now.

“At this time we do not [plan to carry them],” Kell added. “We think of lab-grown diamonds versus natural diamonds as two separate categories. Our belief is consumers will continue to select natural diamonds for engagement and significant milestones, whereas lab-grown diamonds…will give shoppers an opportunity to expand their jewelry box with…jewelry they can wear every day.”

Lightbox opens its doors

The launch coincides with the debut of Lightbox’s new 60,000-square-foot manufacturing facility in Gresham, Oregon. The synthetics maker began production at the facility during the summer, as construction was being completed, and plans to ramp up output at the $94 million plant to reach 200,000 carats annually.

“Manufacturing lab-grown diamonds in the US was a goal from the beginning,” said Lightbox CEO Steve Coe. “With this facility and our…partnership with Blue Nile, we have an incredible opportunity to grow our business, improve consumer education and further establish Lightbox as the leading lab-grown diamond jewelry brand.”

Lightbox first dipped its toe in the retail space through partnerships with Bloomingdale’s and Reeds Jewelers. Earlier this month, the company announced an expansion to 10 independent retail jewelers in the US and Canada, a move it believes will enable it to gain insight into different audience segments, and learn how they shop and which products appeal to them most.

While the De Beers brand is currently focused on retail partnerships, Coe told Rapaport News he wouldn’t rule out the possibility of “one or two” self-operated stores “at some point.”

The company is also looking to expand its product offering, including creating larger sizes for its lab-grown diamonds, which currently weigh up to 1 carat.

“The biggest priority for us in 2021 is exploring the opportunity to go to larger sizes,” Coe noted. “That is something we are working on — going up to 2 carats.”

Meanwhile, the lab-grown brand is also looking to extend its color range beyond white, blue and pink.

“Our scientists are already looking at other color options, and in the lab at least, we’ve made yellows, greens, violets and other shades,” Coe added. “But that’s more likely in the 2022, 2023 timeframe, probably.”

Source: Diamonds.net