News – Page 76 – The Diamond Certification Laboratory of Australia (DCLA)

Tiffany, Macy’s Among Retailers Closing US Stores

A growing number of US retailers, including Tiffany & Co., are temporarily shuttering all locations across North America in an effort to stem the coronavirus spread.

“Effective immediately, we’re temporarily closing all Tiffany stores in the US and Canada, as well as many other locations globally, to protect our teams, clients and communities,” the jeweler said in an Instagram post Tuesday. “Now more than ever it is time for us to take care of the ones we love.”

Macy’s closed all its stores nationwide as of close of business Tuesday, including its Bloomingdale’s department-store chain. However, all its brands will continue to operate via online sites and mobile apps, it noted.

“The health and safety of our customers, colleagues and communities is our utmost priority,” Macy’s CEO Jeff Gennette said Tuesday. “We will work with government and health officials to assess when we will reopen.”

J.C. Penney followed suit Wednesday, shutting all stores and business offices in the country, noting operations were currently slated to resume April 2.

Nordstrom has also announced it will suspend operations at all its North American stores, yet the company has limited the closure to a two-week period, it said. During that time it will offer curbside pickup for online orders. Meanwhile, Saks department store has shut its New York and Philadelphia locations, according to the Los Angeles Times.

Meanwhile, Pandora will not only close its US-based stores, but will shut locations in Italy, Spain, Germany and France, among others. It has also encouraged its franchisees and multi-branded partners in affected markets to cease operations voluntarily.

Signet Jewelers has not declared official plans to close any stores, but said it would follow the advice of the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC).

“Nothing is more important than the safety of our employees and customers,” David Bouffard, Signet’s vice president of corporate affairs, told Rapaport News Wednesday.

Signet shares were down 35% since start of trading on Wednesday, March 11, while Macy’s dropped 29% and Tiffany slipped 11%.

Source: Diamonds.net

Sarine Ushers In Era of In-Factory Grading

Sarine Technologies has launched a new platform enabling manufacturers to tap its automated grading systems and issue a report in-house to support the needs of jewelers.

The company this week introduced its eGrading innovation via a video campaign on YouTube claiming the concept would “change diamond grading forever.” It allows manufacturers to self-execute third-party grading of the 4Cs — cut, carat weight, color and clarity — along with other personalized parameters required by the jeweler, without having to send the diamond to a grading laboratory.

“We believe the market is moving in this direction and our technology is now mature enough to make that happen,” CEO David Block told Rapaport News in a briefing at Sarine’s innovation center in Hod Hasharon, Israel.

“The digital aspect opens up the possibility to customize the report, which is difficult for a lab to achieve,” Block explained. “Once you grade the diamond at the source, the manufacturer is now responsible for its own destiny.”

The initiative builds on Sarine’s automated grading systems, with the company first announcing its ability to automate the grading of color and clarity, and therefore all the 4Cs, in 2016. It uses artificial intelligence (AI) machine learning to assess the grading results of tens of thousands of diamonds to arrive confidently at its color and clarity decision.

Empowering the manufacturer to execute the report enables it to provide a more personalized service to the jeweler. Block believes eGrading will improve efficiency for manufacturers, since they don’t have to send the stone out to the lab, while still using third-party verification. This saves on the time, expense, and opportunity cost of not having the diamond available to sell. And the retailer benefits from being able to tap the right goods from its supplier in a shorter period.

“Diamond grading is still in the Blockbuster days, where I need to send my diamond to the lab and wait for them to finish grading. They decide what goes in first and I get the stone back with certain criteria that are generally not good enough for me as I go out and sell the diamond,” he added, explaining that lab certificates are too generic.

While the retailer might want to emphasize other parameters such as the stone’s fluorescence, or different types of inclusions, among others, Block asserts it is difficult and expensive for the labs to go into the required level of detail.

Market ready

Sarine claims its technology will provide those details as the system evolves, using the same AI machine-learning principles in other parameters as it applies for color and clarity grading.

In that sense, its eGrading program isn’t a finished product, and probably never will be, because Sarine’s systems are constantly evolving and improving, according to Block. “We’re presenting our vision for where the market is heading and we have developed the technology that we believe makes this possible,” he stressed.

The company expects to reach several new milestones in 2020 as it rolls the program out to the market, Block assured, without divulging what those might be.

He believes the industry is more than ready to embrace the cultural change the company is proposing, observing that the “the midstream is very tech-savvy.”

A means to an end

Block also recognized that others may be entering the same space. Representatives from De Beers and the Gemological Institute of America (GIA) joined Block in a panel discussion at the Dubai Diamond Conference in September by asserting that automation of diamond processes will come “sooner than you think.” Each independently stressed that they’re ready to propose a solution.

Sarine is confident it can lead the way in the diamond industry’s “tech revolution,” given that technology is its core competency. Other companies that develop technology are also focused on other areas within the diamond pipeline. Technology, he emphasized, is going to play a big part in bringing about dramatic changes in the diamond industry.

In that spirit, the objective of Sarine’s eGrading initiative is to realign the emphasis currently placed on grading reports, Block added.

“Diamond grading is not a goal in and of itself. Rather, the objective is to help price a diamond and to help source what you’re looking for,” Block said. “We’re looking at how we can improve the process to get to that goal of how to source the diamond. How people source diamonds will change. It’s natural that the industry will shift in this direction.”

Source: Diamonds.net

Gem Diamonds recovers 100 diamonds larger than 100 carats

Commenting on the results, Clifford Elphick, CEO of Gem Diamonds, says:

“Gem Diamonds delivered solid operational results which together with the targeted gains of the Business Transformation programme and continued emphasis on cost controls, confirmed our status as one of the lowest-cost producers in the industry.”

“The operational results were characterised by the achievement of all guided operational metrics and the recovery of 11 diamonds greater than 100 carats each, which also brought the total number of diamonds of greater than 100 carats recovered at the Letšeng mine to 100.

“This, together with a 13.32 carat pink diamond that was recovered and sold for a Letšeng record of US$656 934 per carat, reaffirms the unique quality of the Letšeng production.

“The Letšeng mining lease was renewed for an effective 20-year period which creates long-term stability for Letšeng.

“This, together with the continued emphasis on cost controls, positions the Company well for an upturn in the market for Letšeng’s quality production which appears to have begun.”

Source: miningreview

Lucapa closer to uncovering Lulo kimberlite source

Lucapa Diamond Company has made some significant progress in its search for the kimberlite source of the high-value alluvial diamonds being mined at the Lulo diamond project in Angola.

Following highly-encouraging tributary sampling results in February 2020, the project Lulo partners commenced a drilling programme in the Canguige catchment area targeting five kimberlite pipes considered prospective to host diamonds, along with two additional priority anomalies.

Once the existing priority kimberlites are drilled, kimberlite bulk samples from these five pipes will be excavated for processing to test for diamonds.

Gem Diamonds Retrieves Another Five Big Stones

Gem Diamonds has recovered five large, high-quality stones at its Letšeng mine in Lesotho, continuing a strong first quarter for the company’s production.

The company unearthed four white diamonds weighing 88, 56, 53 and 33 carats between February 28 and March 3. It also found a “top-quality” 13-carat pink diamond.

Those are in addition to the recovery of a 114-carat stone the miner reported last week. It found a 183-carat, white, type IIa diamond last month.

The miner is ahead of where it was this time last year in terms of its large-stone recoveries. In 2019, Gem Diamonds didn’t find any stones over 100 carats until late March. During that year, the company unearthed a 13.33-carat pink diamond similar to the one it found last week. That stone sold to Graff for $8.8 million, fetching a record average price of $656,933 per carat for Gem Diamonds.

While the recovery of large stones bodes well for the company, it has had to cancel a rough tender that was set to take place in Israel from March 8 to 12 due to the coronavirus, the Israel Diamond Exchange reported. Its Belgium auction will proceed as planned.

Source: Diamonds.net

Pandora to Slash 180 Jobs in Restructuring

Pandora is embarking on a major streamlining process aimed at speeding up its ability to act on customer feedback, the jeweler said Wednesday.

The Danish company will close its three regional offices — management centers that oversee stores in specific parts of the world — to eliminate a layer between upper management and customers, it noted. It will cut 180 workers as a result.

“[This] brings our global headquarters closer to our local markets and consumers, and ensures that feedback from consumers can more quickly fuel new concept creations,” noted Pandora CEO Alexander Lacik. “The reorganization will reduce organizational complexity, enable Pandora to execute with more speed and agility, and add critical capabilities required to support growth.”

Pandora will group its market areas into 10 clusters, each of which will be headed by a general manager who is based in the largest market within that cluster. All general managers will report to a newly hired chief commercial officer, whose identity the company will disclose shortly.

The jeweler will also establish two global business units that will oversee all products, which it believes will offer a more consistent marketing message and consumer experience, it said. One unit will be responsible for core products, including its Moments collection, charms and collaborations, while the second will drive newer product categories and innovations. The units will report to chief marketing officer Carla Liuni.

Additionally, as part of the new restructuring, three regional presidents will step down from the executive team. The new system will take effect April 2.

Source: Diamonds.net

De Beers Sales Fall as Virus Impacts Sentiment

De Beers’ rough-diamond sales declined 28% year on year to $355 million in February as the coronavirus hit demand.

Many sightholders took up the miner’s offer to delay buying goods destined for China, sources in the rough market told Rapaport News. The company let clients reject certain 1- to 2-carat rough diamonds and reschedule those purchases for later in the year.

The coronavirus has shut down retail in China, leaving manufacturers reluctant to buy goods they can’t sell. That has partly reversed an improvement in the market at the start of the year due to post-holiday restocking and positive data from domestic Chinese consumer sales. Cutters’ profit margins had also been rising slightly following De Beers’ rough-price reduction in November, sightholders explained.

“Sentiment was very confused [at the February sight],” a sightholder said. “De Beers corrected prices over the past three or four months, but because of the issue with the coronavirus, people are not sure what to do.”

Proceeds from the second sales cycle of the year were 36% lower than January’s $551 million, which was the highest tally since April 2019. The total includes last week’s sight in Botswana, as well as the company’s auction sales.

“Following an improvement in demand for rough diamonds during the first sales cycle of 2020, we recognized the impact of COVID-19 coronavirus on customers focused on supplying the Chinese market, and put in place additional targeted flexibility to enable customers to defer allocations of the relevant rough diamonds,” said De Beers CEO Bruce Cleaver.

De Beers’ sales have slid 9% year on year to $906 million for the two first two cycles combined. The next sight runs from March 30 to April 3.

Source: Diamonds.net

Population denounces illegal extraction of diamonds in Angola

Luanda, Mar 4 (Prensa Latina) Popular claims in southern Angola warned of the illegal extraction of diamonds and other natural resources in localities of Cuando Cubango, local press reported on Wednesday.
According to the Jornal de Angola daily, the warnings came from the municipality of Mavinga, where the population observed a group of foreigners in clandestine mining activities.

Cited by the newspaper, the province’s governor Julio Bessa said he knew the claims of the population and promised that personnel from the Ministries of Mineral and Petroleum Resources, and Interior will carry out the relevant investigations to adopt measures.

From the Caiundo commune, 135 kilometers from the city of Menongue, reports also arrived on the extraction of various mineral resources, including mercury, confirmed the governor, who assured he was not in doubts about the complaints’ veracity.

As he acknowledged, another similar concern is the uncontrolled exploitation of forest resources in the province, rich in biodiversity, wood, diamonds, copper, gold, bronze, quartz and iron.

The aforementioned irregularities are a concern of the national authorities, which launched Operation Transparency in September 2018, focused primarily on preventing and punishing crimes related to diamond trafficking and immigration.

As a result of the plan, in September 2019 the executive reported on the seizure of about 35,000 carats in one year.

Source: plenglish

Ellendale revival on the horizon with increased diamond value

Gibb River Diamonds has completed a review of the mothballed Ellendale diamond mine in Western Australia that will help it edge closer to a proposed restart.

The independent appraisal, which was completed by which was completed by Independent Diamond Valuers International (IDVI) valued gems from the Ellendale 9 East Lobe at $US750 ($1120) per carat.

This price represents a 20 per cent increase since 2008, largely due to the high number of fancy yellow diamonds unearthed at the West Kimberley-based mine.

With these results, a mine revival is looking ominous for the site, which was closed in 2015.

Last December, Gibb River Diamonds accepted an offer from the Western Australian Government apply for new tenements at the site.

“This review is important as it helps Gibb River Diamonds to make commercial decisions regarding mine planning and development priorities at Ellendale,” the company stated.

“Previous operators had a contract to sell the fancy yellow component of their production to Laurelton Diamonds (the jeweller Tiffany & Co).

“It is uncertain if similar premium prices can be achieved with any future fancy yellow goods.

“However, there is a potential opportunity to capitalise in the uniqueness of these fancy yellow goods to sell above market prices.”

The independent appraisal showed a further 18 per cent increase at the Ellendale 9 deposit to $US559 per carat since 2008.

The Ellendale 4 deposit also experienced an increase in value to $US135 per carat, representing a 5 per cent rise in 12 years.

IDVI uncovered 16 per cent fancy yellow diamonds within the Ellendale East Lobe, compared with 9 per cent in the West Lobe.

Gibb River has affirmed that as this information is based on generic sales data, future sales results could “vary significantly” from those in the report, as no sales have occurred since 2015.

Source: australianmining.com.au

Alrosa steps up efforts to brighten fluorescent diamond sales

Russia’s Alrosa the world’s top diamond miner by volume, is betting on a new strategy to boost its sales amid an industry-wide slowdown that has hit small companies the hardest.

The state-owned company is now selling naturally occurring fluorescent diamonds mixed with others. At the same time, it’s holding talks with global jewellery retailers about jointly marketing its ‘Luminous Diamonds’ brand, which uses the glowing stones.

Fluorescence, a bluish glow produced by ultraviolet rays (UV), is a characteristic of 25% to 35% of diamonds, according to the Gemological Institute of America (GIA).

The feature has traditionally been seen as a negative attribute as it can make a diamond appear “milky” or “oily” in direct sun or UV light. Alrosa’s marketing efforts are centred on changing those perceptions.

Glowing diamonds are most common in Russia and Canada due to their proximity to the Arctic, where they are usually found.

GfK market research agency recently conducted a study involving over 4,000 jewellery consumers to determine how they perceived fluorescent diamonds.

The survey revealed that 74% of the respondents in the US didn’t know what they were or were poorly informed about them. When educated, however, over 82% of respondents said they would consider buying a diamond with such a feature. And almost 60% of customers, mostly millennials, expressed their willingness to pay as much as 15% more to obtain a fluorescent diamond.

About half of all diamonds produced globally have some fluorescence, but those in which the feature is “strong” — the focus of Alrosa’s campaign — represent as much as 5-10% of global supply.

Global demand for all types of diamonds fell between 2018 and 2019, affecting small stones producers the most, due to an oversupply in that segment that dragged prices down.

Increasing demand for synthetic diamonds also weighed on prices. Man-made stones require less investment than mined ones and can offer more attractive margins.

Big companies have not been immune to the downward trend. De Beers, the world’s No. 1 diamond miner, reported in February its worst set of earnings since Anglo American acquired it in 2012.

Source: Mining.com