Southstone Minerals Ltd. [SML-TSXV] provided a production and operational update for December 1, 2019, to February 28, 2020 (Q2 2020), and March 1 to May 31, 2020 (Q3 2020), on its project portfolio in South Africa.
The Oena Project consists of one New Order Mining Lease located in the Northern Cape Province, South Africa. Oena is 8,800 hectares in size and covers a 4.8-km wide strip along a 15-km length of the lower Orange River. Southstone owns 43% of African Star Minerals (Pty) Limited which owns 100% of the property.
Southstone continues to focus and prioritize its efforts on the alluvial Oena diamond mine. There is currently one mining contractor on site using eight pan plants to process run-of-mine (ROM) material and one Bourevestnik (BVX) unit used for diamond recovery.
Production results for both Q1 and Q2 were impacted as a result of the mandatory closure of the mine for the period from March 26, 2020, to May 3, 2020, due to COVID-19. A total of 803.92 carats (112 diamonds) were produced, placed on tender and sold with an average price of US $1,957 per carat.
Bluedust Carats produced No. of stones US$/carat
Q2 2020 ROM 588.14 77 1,942
Q3 2020 ROM 215.78 35 2,001
The Oena diamond mine continues to produce very large and high-quality diamonds. For example, 52.62 carats (sold for US $127,975), 44.25 carats (US$243,000), and 37.03 carats ($188,962). Twenty other stones were greater than 10 carats.
Kwena Group, Republic of South Africa
Shareholders approved the disposition of the Kwena Group on May 15, 2020, and the company received final approval from the TSX Venture Exchange on the May 25, 2020. This disposition of the Kwena Group resulted in a total of 4,527,416 shares being returned to treasury and the forgiveness of outstanding indebtedness of the equivalent of $1.2-million.
Southstone agreed to settle an outstanding debt of $35,430 to two creditors by issuing 708,600 shares at $0.05 per share, subject to TSXV approval.
Belgium’s diamond trade slowed in June, with polished exports down 44% year on year to $469 million, according to data from the Antwerp World Diamond Centre (AWDC). However, the rate of decline eased following heavier drops in April and May, when the global industry shut due to the coronavirus. US orders rose 4% to $173 million in June, indicating a gradual recovery as the important retail market reopened.
Belgium Trade Data for June 2020
June 2020
Year-on-year change
Polished exports
$469M
-44%
Polished imports
$350M
-66%
Net polished exports
$120M
2019: Deficit of $185M
Rough imports
$351M
-48%
Rough exports
$237M
-71%
Net rough imports
$114M
2019: Deficit of $125M
Net diamond account
$6M
2019: Deficit of $60M
Polished exports: volume
146,350 carats
-60%
Average price of polished exports
$3,206/carat
40%
1H 2020
Year-on-year change
Polished exports
$2.49B
-58%
Polished imports
$2.51B
-59%
Net polished exports
-$14M
Deficit decreased 95%
Rough imports
$2.75B
-37%
Rough exports
$2.25B
-55%
Net rough imports
$494M
2019: Deficit of $621M
Net diamond account
-$508M
2019: Surplus of $360M
Polished exports: volume
1.2 million carats
-46%
Average price of polished exports
$2,097/carat
-21%
Source: Antwerp World Diamond Centre; Rapaport archives
About the data: Belgium is usually a net exporter of polished diamonds. As such, net polished exports— representing polished exports minus polished imports — will normally be a positive number. The nation is also a net exporter of rough. While Antwerp is home to some high-value manufacturing, its main role in the market is as a facilitator of rough-diamond trading, with companies from around the world coming to the city to buy rough. The net diamond account is total rough and polished exports minus total imports. It is Belgium’s diamond trade balance, and shows the added value the nation creates by exporting rough or manufacturing it into polished.
Live jewelry auctions are returning with the first one being held in Geneva by Sotheby’s on June 23 offering a diverse collection of statement diamonds, colored gems and historic jewels.
Sotheby’s Part II Magnificent Jewels & Nobel Jewels – Geneva sale was originally scheduled for May but was postponed due to the novel coronavirus pandemic. The effects of the worldwide spread of this infectious disease is still being felt as dramatically reduced travel and freight shipments have hampered the efforts of jewelry specialists to assess gems and jewels. Most likely because of this and the scheduling changes the sale consists of only 48 lots, far fewer than usual for a live international auction. However, there will be a strong and varied selection gems and jewels.
The live sale is accompanied by an online auction, Sotheby’s Part I Magnificent Jewels & Nobel Jewels – Geneva, with 178 lots dating from the 19th century through to the present day. It includes jewels from renowned jewelry houses, including Sterlé, Suzanne Belperron, René Boivin and Hemmerle. This sale has begun and will run till June 24.
Not surprisingly colored diamonds are among the top lots in live sale, with blues, pinks and yellows dominating. The auction is led by a 3.01-carat fancy vivid blue step-cut, diamond. The colored gem set on a ring has a clarity grade of VS1 (very small inclusions), according to the Gemological Institute of America report. Its estimate is $4.3 – $6.3 million.Most Popular In: Watches & Jewelry
It’s followed by a 7-carat marquise-shaped fancy intense pink diamond. It received a clarity grade of VVS2 (very, very small inclusions) by the GIA. It is set on a ring flanked by fancy-shaped diamonds and with a shank lined with brilliant-cut diamonds. It’s the first time this diamond has come to auction in more than 30 years, where it has been kept in the same private collection. Its estimate is $2.5 – $3.5 million.
There’s also a selection of large, colorless diamonds led by a 21.56-carat D color, VVS1 clarity diamond by Lorraine Schwartz, an American bespoke high jewelry designer with a large celebrity clientele. The gem has excellent polish and symmetry, according to the GIA report.
The Duchess of Manchester’s emerald and diamond necklace, estimate: $300,000 – $400,000 SOTHEBY’S
Among the noble jewels in the sale, the standout is an emerald and diamond necklace owned by Consuelo Montagu (1853-1909), Duchess of Manchester, which was given to her as a wedding gift. Born in New York to parents of Cuban descent, she was known for her match-making skills, inspiring her wealthy friends to find suitable husbands in the United Kingdom, according to the auction house. Her ability to bring together American fortunes with noble titles led to the coining of the phrase “Million Dollar Princesses.” This antique jewel was displayed at the Victoria & Albert Museum in London for 22 years. Its estimate is $300,000 – $400,000.
Cartier diamond bracelet and pair of diamond clips, circa 1930 SOTHEBY’S
In addition, there’s a collection of jewels owned by Baroness Bachofen von Echt (1877 – 1959), a New York native who became German nobility through marriage. Pieces from her collection includes a diamond bracelet (estimate $100,000 – $150,000) and diamond clips (estimate $60,000 – $100,000), both made by Cartier, along with creations by Verdura and Hemmerle.
Two impressive sapphires are included in the sale. The first is a 105.58-carat Ceylon sapphire set on a gold ring. The gem is accompanied by reports from the Swiss Gemmological Institute (SSEF) and from Gübelin that both state that there are no indications of heating, with “a few minor nicks and chips consistent with normal wear.” Its estimate is $500,000 – $700,000.
The second is a 16.11-carat Kashmir sapphire set on an 18k gold and diamond ring. The gem is accompanied by two reports from the Swiss Gemmological Institute and from Gübelin that both state that there are no indications of heating and in “very good condition.” Its estimate is $300,000 – $500,000
The continued importance of signed jewels is evident in this sale with pieces from historic and contemporary jewelry houses, including Bulgari, Cartier, Fred, Furst. Harry Winston, Hemmerle, René Bovin, Tiffany & Co. and Van Cleef & Arpels.
One of the standouts in this group is a Cartier diamond and platinum bracelet, Course de Feuillage, 1926. The entire bracelet is set with circular-, single-cut and baguette diamonds that combines geometric shapes with the stylized representation of leaves. Its estimate is $200,000 – $300,000.
The Diamond Producers’ Association (DPA), established only five years ago by a coalition of diamond miners including De Beers and Alrosa, has relaunched as the Natural Diamond Council.
In addition to continuing to advertise natural diamonds as the DPA did previously, the council is also hoping to reach younger consumers by producing catchy editorial content on trends and innovations in diamond jewelry and the heritage of natural diamonds.
The rebranding comes at a difficult time for the diamond sector, with the economic fallout from the coronavirus pandemic depressing demand and prices.
“The current economic climate creates unprecedented challenges for the luxury industry. But, as the climate improves, natural diamonds will connect stronger than ever before,” said Natural Diamond Council CEO, David Kellie in a release. “Consumers will have a greater respect for all things natural and seek brands that have an honest mission to be truly sustainable. They’ll be purchasing luxury goods with a greater meaning, particularly those celebrating connections between friends and loved ones. We need to speak to the younger audience in a different way and we’re delighted to have brought in a number of partners that will contribute to the new world of natural diamonds we’re creating.”
The website will offer coverage under six categories: Epic Diamonds, Hollywood & Pop Culture, Love & Diamonds, Style & Innovation, Diamonds 101 and Inside the Diamond World. The council has also started a new, biannual trend report written by style experts, forecasting diamond jewelry trends, and incorporating styling tips.
In addition, the DPA’s Real is Rare, Real is a Diamond campaign will be replaced with the council’s new branding: “Only Natural Diamonds” (OND).
“Our new digital platforms will inspire and inform consumers globally about the values and heritage of natural diamonds, as well as promoting the significant innovation happening throughout the world of diamond jewelry,” added NDC’s managing director, Kristina Buckley Kayel. “The younger audience is clearly engaged and inspired when we present ourselves with authority in the digital world. It’s our aim to be number one across all digital platforms in our industry and our ambitious plans reflect these goals.”
The Natural Diamond Council will also aim to educate consumers on the sustainability and ethical practices of diamond producers, as well as everything they need to know when buying diamond jewelry.
In a release, the organization said the relaunch reflects the collective commitment of its members, Alrosa, De Beers, Dominion Diamonds, Lucara Diamond, Petra Diamonds, Murowa Diamonds, and Rio Tinto, to the growth of the industry beyond the current economic crisis.
“Our mission is to educate consumers on the industry and positive social contribution diamonds make to the world today,” said Stephen Lussier, Chairman of the NDC. “Our members are committed to these goals and the launch of the NDC marks an exciting step on this path.”
Visit www.naturaldiamonds.com for more information.
Canada’s Dominion Diamond Mines has unveiled a transaction that would allow it to exit court protection from creditors and access short-term operating funds, which would pave the way to eventually restart its idled Ekati mine in Canada’s Northwest Territories.
The company, which owns and operates the iconic Ekati diamond mine and also has a 40% interest in the nearby Diavik, said it had signed a letter of intent with an affiliate of The Washington Companies.
The privately held Montana-based conglomerate bought Dominion for $1.2 billion in 2017 when the miner was the world’s third-largest producer of rough diamonds by value.
Under the agreement, which requires court approval, Washington would buy the company’s assets for about $177 million, while assuming its operating liabilities.
It would also provide Dominion with up to $84 million in short-term debtor-in-possession financing.
Ekati has been halted since March to help slow down the spread of the coronavirus pandemic. The operation was left with about $180 million worth of inventory, which it has been unable to sell since its Belgian retailers remain closed.
The diamond miner said at the time that covid-19 had a “devastating impact” on the global diamond mining industry, affecting the company.
According to court documents seeking bankruptcy protection from creditors, Dominion revenue from diamond sales last year reached about $528 million.
The company said the proposed sale would be conditional on reaching an agreement with Rio Tinto on the Diavik joint venture. Failing that, Dominion would exclude its interest in the Yellowknife diamond mine from the transaction.
The miner is a major employer in the Northwest Territories, with 634 workers, 60% of whom are locals. Only 212 people are currently at the mines, which are fly-in and fly-out operations. This allows for a pre-screening of the staff before they are allowed to board flights to Ekati and Diavik.
Shattered dreams
The global coronavirus outbreak squashed diamond miners’ dawning hopes of a recovery in a sector already reeling from weak prices and demand since late 2018.
De Beers, the world’s largest producer by value, cut 2020 production guidance by a fifth last month after earlier cancelling its April sales event.
Russia’s Alrosa, the world’s top diamond producer by output, saw sales for rough and polished diamonds drop to $15.6 million. The figure stood in stark contrast to the $152.8 million the diamond miner fetched in March and the $405 million in January.
Lucara Diamond, another Canadian company, posted earlier this month a net loss of $3.2 million, or $0.01 a share, for the first three months of the year.
The figure was in sharp contrast with the $7.4 million in net income, or $0.02 in earning per share the miner reported in the same period last year.
South Africa’s Petra Diamonds recently delayed interest payments to borrow $21 million in new debt, a crucial move to keep the company afloat.
Investment banks are increasingly reluctant to extend credit to diamond producers, as inventory is not being sold and defaults are possible, analysts have warned.
“We are concerned about an oversupply of rough diamonds following the reopening of economies, as a lot of inventory could potentially be flooded into the system and the market might not be able to absorb all of it, resulting in increased pricing pressure,” Citi said in an early May note.
A new study by University of Alberta scientists could help guide the search for rare, high-value yellow diamonds in the Canadian North.
The researchers, led by PhD student Mei Yan Lai, examined the chemical makeup of stones recovered from the Chidliak and Ekati mines in Northern Canada to get a better understanding of how they formed.
“Without this research, we wouldn’t know that two separate formation events occurred, and that the second, more recent event is responsible for the yellow colour,” explained U of A diamond geologist Thomas Stachel.
“The more we know about the origin of these potentially high-value diamonds, the better results for diamond exploration and value creation in Northern Canada.”
Lai said they wanted to understand the origin of the yellow colour in the diamonds from the two deposits.
“Canadian yellow diamonds have never been studied spectroscopically in detail. Our results suggest that the cause is the preservation of unstable single nitrogen atoms preserved inside the diamonds,” explained Lai, who conducted this research as part of her master’s studies in the Diamond Exploration Research Training School under the supervision of Stachel.
The research team determined that some yellow diamonds contain colourless cores, meaning that the yellow outer layers crystallized on top of clearer centres. Lai determined that the yellow diamonds crystallized no more than 30,000 years before the kimberlite eruptions that brought them up to Earth’s surface.
“Our analysis shows that the colourless cores in these yellow diamonds are about one billion years older,” Lai said. “In fact, the carbon isotope compositions and nitrogen concentrations of the colourless cores and yellow outer layers are significantly different, suggesting that they formed in at least two distinct events and involved different diamond-forming fluids.”
The researchers said discovering a potential new source of yellow diamonds in the Canadian North is economically significant, as the previous main source of high-quality yellow diamonds, the Ellendale Mine in Western Australia, was recently shut down.
The discovery of colourless cores in some of the yellow diamonds may also be of interest to the jewelry trade, said Lai.
“Occasionally, rough yellow diamonds lose their vibrant yellow colour after being cut and polished—probably because this kind of diamond has a thin layer of yellow overgrowth on top of the geologically older colourless core,” she said.
The project is a collaboration with Dominion Diamond Mines and Peregrine Diamonds Ltd. Part of the analyses were done at the Gemological Institute of America.
The research is supported by a bursary through DERTS, funded by the Natural Sciences and Engineering Research Council of Canada’s Collaborative Research and Training Experience program.
The study, “Yellow Diamonds With Colourless Cores—Evidence for Episodic Diamond Growth Beneath Chidliak and the Ekati Mine, Canada,” was published in Mineralogy and Petrology.
Omega’s cult-status Speedmaster is one of the world’s most famous sports watches, along with the iconic Rolex Daytona and Audemars Piguet Royal Oak. Every once in awhile, Omega invites women to enjoy the iconic Speedy with a 38 mm size, and now, for the first time, there is a full gold version of the 38, with diamond options.
There are 90 diamonds set into the outer bezel of the Omega Speedmaster 38 in 18k Sedna gold. OMEGA
The smaller size is still a sports watch. It retains the model’s familiar tri-compax dial, with small seconds at 9 o’clock and chronograph minutes and hours at 3 and 6 o’clock, but now the subdials are oval shaped. Omega also manages to preserve the signature tachymeter scale, despite setting the bezel with diamonds, by placing it on an aluminum half-bezel just inside the gem-set ring. For those who don’t want the 90-diamond bezel option, it’s also available without gems.
The Omega Speedmaster 38 in 18k yellow gold with 90 diamonds set into the outer bezel. OMEGA
There are two models, one in 18k Sedna gold, Omega’s proprietary red gold alloy with copper for the warm color and palladium for extra strength. The half-bezel on the red gold model is “cappuccino,” a color introduced on a similar 38 mm model two years ago in steel. The hands and arrowhead index markers are also gold, and the strap is beige. The second model is 18k yellow gold with a green half-bezel and green strap.
The caseback is engraved with the Speedmaster’s iconic Seahorse insignia. OMEGA
The movement is the same elite caliber used in larger Speedmaster and Seamaster models, the Co-Axial 3330, an automatic movement with a 54-hour power reserve. You can’t see it because the caseback is closed, but what you can see back there is an engraving of the Speedmaster’s iconic Seahorse, also called the Omega Hippocampus. In Greek mythology, the hippocampi were sea monsters with the heads of horses and the lower bodies of fish.
The Zimbabwe Consolidated Diamond Mining Company (ZCDC) failed to meet its 2019 target of 3 million carats, but officials are buoyant fortunes will turn around as the firm has consolidated its investments in exploration, mining and processing to improve output this year.
Speaking durng a media tour of Chiadzwa diamond fields on Friday last week, Acting ZCDC Chief Executive Officer Roberto DePreto said they are aiming to double the 1.6 million carats produced last year through joint venture agreements, increased exploration as well as mitigating viability challenges, linked to power shortages and access to foreign currency.
“Since the Diamond Policy was issued we are now looking for joint venture partners, those joint venture partners get allocated a particular concession and we then subdivide the (overall) 626 special grant into specific special grants for those venture companies.
“Last year we produced 1.6 million carats and this year we are targeting to double that through our investments in new plant machinery and our exploration capabilities,” said DePreto.
Consuming an average of 5 megawatts and at 25 000 of diesel daily, ZCDC has also invested in new plant machinery from Belarus which needs foreign currency for repair and maintenance, with at least seventy percent of consumables and spares imported.
Officials said such overheads have hampered production targets, costing in total a minimum of 8 million tons of unprocessed diamond ore from the down time caused by the listed operation constrains.
Mine manager, Innocent Guvakuva said focus will be placed on optimizing processing capacity, already on a positive trajectory following acquisition of new plant machinery, as well as improving power supply to reduce production downtime.
“Last year there were issues to do with power, this year there has been a bit of improvement but last year it was worse, issues to do with fuel and general forex availability because 70 percent of all consumables and spares we import.
“So, if your foreign currency access scenario is not stable you are bound to suffer, but this year things have started on a better note… one of the biggest challenges in Zimbabwe is that we are a cash economy.
“We lost a lot last year in terms of production down time we lost, probably in terms of total material mined we are looking at about 8 million tones that we could have moved last year, which is very big,” said Guvakuva.
He added, “We have installed a 450 ton per hour plant it’s got phases now we are installing phase three where carat production is expected to go up, our focus now in terms of mining we are stable but it’s the liberation and optimization of the plant that we will work on.”
Guvakuva said focus will also be placed on greenfield and ground field, together with exploration contractors under a ‘hybrid exploration model’ in the seven approved special grants in regions considered diamondiferous.
“We are increasing our exploration through a hybrid model in the sense that we have our own exploration drill rigs, commissioned them in 2018, they are called diamond drill rigs that can drill up to 250 metres, we have what we call a Reverse Circulation Rigs (RCO).
“We have also engaged contractors which makes it the hybrid model, they have done work right now the contract has ended, but we are doing a lot of exploration we have a lot of ground field and greenfield projects all over the place.
“ZCDC we have seven approved special grants, in this whole area which is about 26 to 30 kilometers its assumed to be diamondiferous, but the economics of it is what we do through exploration. To say we will be here for two or three years I will be lying (is an under estimation) but we will be here for a very long time,” said Guvakuva.
BlueRock Diamonds has announced that it operated profitably for the first time in the second half of 2019. The miner started operations in 2012.
The AIM-listed diamond producer, which owns and operates the Kareevlei Diamond
Mine in the Kimberley region of South Africa said its revenue was up 190 percent to £4.1 million ($5.4 million) for full year 2019.
The miner sold 12,675 for the year, an increase of 118 percent over the 5,805 carats in 2018. On a quarterly basis, Q4 2019 saw an increase of 172 percent to 4,170 carats compared to 1,533 carats in Q4 2018.
BlueRock also saw an increase in its average price per carat during Q4 and FY2019. For 2019, the per-carat price increased 24 percent to $415 (2018: $334) and for the quarter it rose 30 percent to $410 (2018: $316).
“I am very pleased with the continued success at Kareevlei,” said Mike Houston, BlueRock executive chairman. “Having achieved the aggressive guidance for 2019 and operated profitably for the first time in the second half of 2019. We are proud of this key milestone, which is a testament to the implementation of the revised production strategy brought in by the company’s new management team in Q2 2019.”
BlueRock said it expects to report positive EBITDA and positive comprehensive income for
the second half of 2019 (excluding non-cash adjustments for IFRS 9 charges and movement in foreign exchange).
The company said the first quarter of 2020 has started “satisfactorily” with expectations that, despite the impact of seasonal rains, it will meet its targeted production volumes for the quarter, which are significantly ahead of those achieved in Q1 2019.
The Perth Mint has released Jewelled Tiger coins featuring rare pink diamonds from Rio Tinto’s Argyle mine in Western Australia.
Its most significant release for 2020 incorporates nearly three carats of fancy vivid intense pink diamonds from the Argyle mine, making up a finely structured three-dimensional 18 carat rose gold tiger pavé.
Two emeralds from Colombia’s Muzo mines feature as the tiger’s eyes and the coin is crafted from 10 ounces of 99.99 per cent pure gold.
The Perth Mint only issued eight Jewelled Tiger coins, which are priced at $259,000 each, recognising the significance of the number eight in Asian cultures and its association with luck and prosperity.
Renowned for its power and beauty, the tiger shares the symbolic virtues of gold and so it was a natural choice to feature the revered creature on a sophisticated release, according to Perth Mint chief executive Richard Hayes.
“Our 2018 Jewelled Phoenix and 2019 Jewelled Dragon coins sold out within weeks of their respective release dates. We expect the Jewelled Tiger will be similarly sought-after among the world’s diamond connoisseurs and collectors of luxury items,” he said.
Each Jewelled Tiger coin is presented in a display case with 18 carat gold furnishings inset with two additional Argyle pink diamonds.
