DCLA gemological testing and diamond grading reports price list
DCLA pricelist 2021
Beware a Supply Bottleneck
The positive sentiment the diamond market experienced during the past few months was a welcome change from the gloomy tone that characterized 2020. Buoyed by holiday sales that proved better than expected, the trade gained the confidence to buy again, even with activity limited mostly to online platforms.
For the first time in many years, polished suppliers struggled to fill orders due to shortages during the fourth quarter. Just a year earlier, the midstream was plagued by what seemed to be a chronic oversupply that pushed down polished prices and caused profit margins to tighten. Among the few benefits of the Covid-19 lockdowns was that manufacturers were forced to freeze rough purchases, stop production, and start depleting the excess inventory they had.
With fewer goods available, it was understandable that the rough market would wake up again in the fourth quarter. The resurgence was a remarkable one, too: The combined volume of De Beers’ and Alrosa’s rough sales rose 57% year on year to 23.9 million carats in the final three months of the year. That’s more carats in a quarter than the two have sold since the beginning of 2017 — itself an anomaly period that arguably fueled the ensuing oversupply crisis.
The positive momentum continued into the new year with reports of sizable rough sales last month. De Beers notched its largest sight in three years, while Petra Diamonds and Mountain Province continued to see good demand at their tender sales, with prices up 8%.
In the February issue of the Rapaport Research Report, we consider the question of whether the strong rough sales are a product of polished demand or of the low supply that typified the market earlier in 2020. It could be both. What’s certain is that the rough market must cool in the coming months or risk throwing the industry back into a polished-oversupply scenario.
Such an event would undo the hard work that went into restoring an equilibrium between the rough and polished markets. It would also fuel skepticism about the stated intention — by miners, manufacturers and retailers alike — of ensuring the diamond market becomes demand driven and more efficient in its operations.
Now, at the start of February 2021, the industry is at a crossroads. Manufacturers must curb their rough purchases to maintain the balance we’ve achieved in recent months and ensure a sustainable recovery. While the holiday season was relatively positive for the industry, global diamond jewelry sales have not yet returned to pre-pandemic levels and are unlikely to do so this year. For now, this means the recovery remains a supply-driven one, and the industry needs to walk the fine line between caution and its enthusiasm to do business again.
Source: Diamonds.net
Mountain Province’s first diamond sale of 2021 shows 8% price rise
After a devastating 2020 which saw a near-collapse in the global diamond trade, Mountain Province Diamonds‘ latest sales figures show the sparkle may be starting to return to the diamond sector.
The 49% owner of the Gahcho Kué mine in the Northwest Territories, operated by 51% owner De Beers, sold 241,827 carats of diamonds for $21.8 million or $90 per carat in the sale, which closed on Jan. 22 in Antwerp. That represents an encouraging increase from an average sales price of $64 per carat in the final quarter of 2020 and $37 per carat in the third quarter.
“The first sale of the year was excellent, the growing confidence amongst rough diamond buyers translated into a healthy price improvement of 8% on a like for like basis when compared to our record high volume December sale,” said Mountain Province president and CEO, Stuart Brown, in a release. “We expect to see a continuation of the positive trend as rough and polished markets continue to strengthen post a successful retail season.”
The company’s next sale, in February, will include the 157-carat “Polaris” gem diamond, recovered in the fourth quarter. Named after the North Star, the stone appears colourless in daylight, but under ultraviolet light “exhibits a rare natural blue fluorescence that echoes its Arctic origins.”
Mountain Province recently released its production and sales results for the fourth quarter. Two confirmed cases of covid-19 during the quarter affected production as existing health and safety precautions were further enhanced. For the quarter, the operation saw a 12% decrease in total tonnes mined (ore and waste), a 21% decrease in tonnes treated (to 736,140 tonnes), and a 23% decline in carats recovered (to 1.5 million carats).
Mountain Province’s share of fourth-quarter production was nearly 745,600 carats.
For the year, the company recorded total sales of 3.3 million diamonds at an average price of $51 per carat for C$227 million ($171.3 million) in revenue.
“Under very difficult circumstances, all driven by Covid-19, the Gahcho Kué mine has performed well in being able to maintain production, albeit at a reduced level, and came very close to the revised guidance in tonnes mined and treated and exceeded the revised guidance target for carats recovered,” Brown said earlier this month on the release of the production figures. He added that the carat recovery was “particularly pleasing under the circumstances” and positioned the company for positive sales numbers in the first quarter of 2021.
Brown said that the last quarter of the year saw a “strong recovery” in the diamond market. In addition, the late 2020 closure of Rio Tinto‘s high-volume Argyle mine in Australia is expected to help establish a “more balanced” supply and demand equilibrium.
“The diamond market came under unprecedented pressure from early March to early September and although this pressure remains, we did see a strong recovery with respect to rough diamond demand in the last quarter of the year,” Brown said. “The two sales during the last quarter saw significant price recovery across all categories of diamonds sold. Early diamond jewelry retail sales reports are encouraging, and we expect to see steady demand for rough diamonds in the first quarter of 2021. There will no doubt still be challenges ahead but we are certainly more positive in our outlook as we start 2021 compared to the middle of 2020.”
Source: Canadian Mining Journal
Petra Diamonds’ investors back restructuring
Struggling Petra Diamonds (LON: PDL) said on Wednesday its investors have approved plans to restructure the business, a move that aims to provide the miner with a more stable, deleveraged capital structure to ensure its short and long-term viability.
Over 95% of shareholders voted in favour of a resolution that includes reducing authorized share capital of the company by cutting the nominal value of all ordinary shares from 10p to 0.001p.
SIGN UP FOR THE PRECIOUS METALS DIGEST
It also involves an increase to Petra’s authorized share capital through the creation of 8.5-million ordinary shares and the authorization for directors to allot ordinary shares up to £88,447 ( just over 8.8-million ordinary shares).
Hefty debt
Petra Diamonds’ weak financial position, a product of stagnant demand and heavy borrowing to expand its mines, particularly the iconic Cullinan, pushed it to put itself up for sale in June. Petra reversed the decision in October, opting instead for the debt-for-equity restructuring approved Wednesday.
The company noted it expected to complete the reorganization in the first quarter of 2021.
Petra’s shares slumped by more than 80% last year as the covid-19 pandemic battered the global diamond sector, with mines forced to shut down while consumer demand continued to fall.
The diamond miner, which has three operations in South Africa and one in Tanzania, is also dealing with allegations of human rights abuses at its Williamson mine in Tanzania, resulting from the actions of its security guards.
Source: Mining.com
Mothae diamonds sell for $7.2 million
Lucapa Diamond Company and its partner, the Government of the Kingdom of Lesotho, have provided an update on the first sale of diamonds in 2021 from the Mothae kimberlite mine in Lesotho.
The parcel of 4,676 carats of rough diamonds were sold for a total of US$5.6 million or US$1,198 per carat. This is the highest average US$ per carat price achieved by Mothae on the sale of any run of mine production parcel.
The sale included a number of Specials (diamonds weighing >10.8 carats), including the 101 carat D colour diamond recovered following re-opening of the mine in Q4 2020, which is the most valuable diamond recovered to date at Mothae.
Lucapa MD, Stephen Wetherall comments:
“Following a tough 2020, where both of our mines were impacted by the pandemic, our valued teams have shown their resilience and operations have bounced back strongly.
“The good recoveries at both mines and growing demand leading to strengthening diamond prices has seen a strong start to 2021.”
“We look forward to Mothae receiving further value following implementation of the cutting and polishing partnership and to completing the expansion at Mothae this quarter.”
Source: miningreview
Diamond Prices Firm After Supply Declines
Diamond trading was seasonally slow in December as the industry’s focus shifted to retail and as diamantaires took their end-of-year break. Sentiment received a boost from strong holiday e-commerce sales, the distribution of Covid-19 vaccines, and the US approval of a $900 billion coronavirus stimulus package.
Polished prices firmed as supply declined due to limitations on diamond manufacturing during India’s lockdowns. The RapNet Diamond Index (RAPI™) for 1-carat diamonds rose 2.3% in December and 5.8% for the full year.
| RapNet Diamond Index (RAPI™) | |||
|---|---|---|---|
| December | 4Q 2020 | FY 2020 | |
| RAPI 0.30 ct. | 0.4% | -4.7% | 0.2% |
| RAPI 0.50 ct. | 0.8% | -2.3% | 12.1% |
| RAPI 1 ct. | 2.3% | 3.8% | 5.8% |
| RAPI 3 ct. | 2.5% | 7.0% | 3.7% |
© Copyright 2021, Rapaport USA Inc.
The industry began 2021 with a healthier supply-demand balance than it had at any stage in the past five years.
The volume of 1-carat diamonds on RapNet in the D-H, IF-VS range — the categories the RAPI measures — declined 24% in the second half of 2020. The top 10% of diamonds in that category were selling at an average of 32% below the Rapaport Price List on January 1, 2021, compared to 37% below on July 1, 2020. The lower discount suggests that demand is stronger relative to the available supply.
Manufacturers are raising polished production in anticipation of steady first-quarter orders as jewelers and dealers seek to replace inventory they’ve sold during the holiday period.
Jewelers with solid e-commerce programs had a good season. Many off-mall independents also did well, as consumers felt safer visiting stand-alone stores than crowded malls and were driven to support local community businesses following the Covid-19 lockdowns. Independents without an effective online presence struggled.
US jewelry sales for October 11 to December 24 fell 4.3% year on year, according to Mastercard SpendingPulse. Online jewelry sales grew 45%.
There is some optimism for the year ahead even as Covid-19 continues to disrupt business activity. To ensure growth, the trade must intensify its efforts to engage with consumers via storytelling and improved omni-channel platforms while keeping supply in sync with prevailing levels of demand.
Source: Diamonds.net
Christie’s Rakes In $5M from Paris Sale
A 14.7-carat diamond ring was the top seller for Christie’s in Paris, nearly tripling its high estimate.
The marquise-cut, E-color, SI1-clarity stone sold for EUR 437,500 ($531,812), or $35,322 per carat, well above its EUR 150,000 ($182,333) upper valuation. It was one of a number of noteworthy diamonds that led the sale Paris Jewels sale, which took place from November 24 to December 9. The auction brought in $5 million, Christie’s said last week.
A ring set with a rectangular cut-cornered, H-color, VS2-clarity diamond, weighing 1.22 carats, fetched EUR 237,500 ($288,696), or $25,167 per carat, nearly double its high estimate. Meanwhile, a ring containing two old-cut, J-color diamonds, each weighing 6.73 carats, smashed its presale high estimate, selling for EUR 137,500 ($167,139).
Colored stones also performed well, Christie’s noted. A pair of ruby and diamond mystery-set earrings by Van Cleef & Arpels garnered EUR 137,500 against a EUR 40,000 ($48,626) upper estimate, while a Ballerina brooch by the designer brought in EUR 106,250 ($129,164), doubling its estimate. A retro ruby and diamond bracelet, which transforms into double clips, tripled its valuation, achieving EUR 93,500 ($113,664).
In total, Christie’s sold 80% of the items on offer, with many pieces selling above their estimates.
“This last jewelry auction of the season demonstrated the continued strength of the jewelry market despite the challenges due to the pandemic,” said Violaine d’Astorg, director of the jewels department at Christie’s France. “Limited exhibition time and auctions without [the] public in the room were compensated [for] by intense activity on the phone and over Christie’s Live.”
Source: Diamonds.net
De Beers Trims Production Plan for Coming Years
De Beers has reduced its production plan for the next two years, aiming to avoid releasing too much rough into the market as the diamond sector attempts to exit the crisis that dominated 2020.
The miner expects to unearth 33 million to 35 million carats in 2021, down from its previous forecast of 34 million to 36 million carats, parent company Anglo American said Friday in a presentation to investors. Output in 2022 will range from 30 million to 33 million carats — compared with earlier guidance of 33 million to 35 million carats — and will remain at the same level in 2023.
De Beers will produce around 26 million carats this year, after the pandemic prompted management to rethink the previous outlook of 32 million to 34 million carats.
“There’s an appropriate degree of prudence being exercised in what we’re forecasting going forward, and we certainly aren’t going to be a contributor to overstocking across the industry now,” said Anglo American CEO Mark Cutifani. “Given the supply situation, we’re going to watch that very carefully. We won’t push more production out there unless we’re comfortable prices are going to increase.”
The adjusted figures came despite De Beers’ expectations of limited global supply, with around 30 million carats dropping out of the pipeline as a result of Covid-19 and the closure of the Argyle mine, he estimated. At least two-thirds of that is unlikely to come back into the market, the executive pointed out. Meanwhile, Cutifani noted signs of a recovery in demand after a difficult year for the industry.
“[It’s] a bit early to call how the Thanksgiving [to] New Year selling season will go, but so far [it’s] quite encouraging despite the obvious Covid issues in the US,” he explained. “China’s been very strong. So far, things are going pretty well.”
However, caution is necessary following a string of major internal and external events that have derailed the diamond market in recent years. Those include a credit crisis in the Indian market in 2018, as well as the US government shutdown that occurred in late 2018 and early 2019, the CEO warned.
Separately, De Beers has made an advance purchase of rough from Debswana, its joint venture with the Botswana government, providing the company with inventory to sell in the first quarter if the demand recovery continues. It also received a one-year extension to negotiations with the African country over their sales deal, after the pandemic prevented the parties from reaching an agreement this year. The 10-year arrangement was due to expire on December 31, 2020.
Source: Diamonds.net
Cartier Emerald And Diamond Ring Fetches $3.6 Million At Sotheby’s
A Cartier emerald and diamond ring blew past five fancy colored diamonds to become the top lot at Sotheby’s New York Magnificent Jewels auction held Wednesday. It fetched $3.6 million, more than three-and-a-half times its high estimate.
The ring features a 21.86-carat Colombian square-emerald-cut emerald flanked by diamonds and mounted on 18k yellow gold. The emerald is described in the grading report as having “minor clarity enhancement” and a “richly saturated medium deep slightly bluish green, slightly included with a few surface reaching inclusions, and the girdle bearing a chip and a few nicks, noticeable under 10x magnification.”
The ring was from the collection of Cecile Zilkha, best known for her lifelong interest in the arts, particularly The Metropolitan Opera.
Private collections featuring a variety of signed jewels were an important part of this sale, with many items from these collections far exceeding estimates. All 29 jewels from the Cecile Zilkha collection sold, fetching a total of $11.7 million, nearly double the estimate for the collection. Eleven jewels from the collection of Marylou Whitney, the philanthropist, thoroughbred breeder, arts patron and society hostess, all sold fetching a total of $1.7 million.
The sale overall was quite successful, taking in a total of $46.9 million, the highest total for a Sotheby’s jewelry auction since 2017. In addition, 91% of the lots sold, with 74% of the lots fetching prices above their high estimates and nine pieces surpassing $1 million.
Fancy colored diamonds, including three heart-shaped gems, made up the top five lots prior to the sale. However two of the gems failed to meet the reserve price. The first was the anticipated top lot of the sale, a pink gold and platinum ring set with a 5.03-carat cut-cornered rectangular mixed-cut fancy vivid pink diamond, accented with two cut-cornered triangular step-cut fancy intense blue diamonds. Its estimate was $9 million – $12 million.
The second was a ring centered with a 2.28-carat fancy vivid blue heart-shaped diamond, encircled by round yellow and framed by white diamonds with an estimate of $2.25 million – $3.25 million.
The three remaining fancy colored diamond lots sold within estimates and were the next three top lots of the sale. They are:
* A 1.71-carat heart-shaped fancy red diamond with SI2 clarity surrounded by white diamonds and mounted on an 18k white and pink gold pendant for a necklace. It fetched more than $3.1 million.
* A 3.67-carat fancy intense blue diamond in a cut-cornered rectangular modified brilliant-cut diamond. The stone is flanked by two emerald-cut diamonds and mounted on an 18k white gold ring. It fetched more than $2.6 million.
* An 18k white and pink gold ring centered with a 2-carat fancy vivid orange diamond framed and accented by round diamonds that fetched nearly $1.9 million.
As mentioned, private collections were an important part of this sale. In addition to the Cartier emerald ring, the Cecile Zilkha collection comprised of 28 other signed and historic jewels. Among the standouts:
* Emerald and diamond earclips by Bulgari that fetched more than $1.1 million, double its high estimate;
* A 1930s diamond rivière by Bulgari that fetched $806,500, well above its high estimate;
* A silver-topped gold, sapphire and diamond brooch that fetched $625,000, more than double its high estimate;
* Earclips by Harry Winston featuring two cut-cornered square modified brilliant-cut Fancy Intense yellow diamonds weighing 15.24 and 14.22 carats that fetched $528,200, within estimates; and
* A ruby and diamond bracelet by Harry Winston that fetched $441,000, well above the high estimate.
The sale ended with 11 jewels from the collection of Marylou Whitney. The top lot in this collection was a Cartier necklace composed of 32 rare natural pearls with a diamond clasp. It fetched more than $1.6 million, more than three times its high estimate.
In addition, two David Webb pieces from the Whitney collection performed extremely well. The first was a platinum bracelet set with 10 emerald-cut diamonds weighing 21.16 carats. It fetched $352,800, above estimates. The second was a showstopper Mughal-inspired necklace that boldly displays a 181.95-carat translucent carved emerald and 10 cabochon emeralds that weigh a total of 126.30 carats, along with rubies and diamonds. The necklace sold for $327,600, more than triple its high estimate.
While Cartier, Bulgari and Harry Winston dominated the headline sales, jewels from Van Cleef & Arpels may have had the biggest impact overall. Twenty-eight jewels by the Parisian luxury brand were sold at the auction. The top lot from Van Cleef & Arpels was a mystery-set sapphire and diamond brooch designed as a flower from a New York collector that sold for more than $1.1 million, nine times its high estimate. That was certainly a headline sale.
An indication that private collections and signed jewels were going to dominate came at the very beginning of the sale. The first 10 lots from a private family collection were by Van Cleef & Arpels. They all sold well above their estimates.
Other auction highlights included:
* A jadeite, natural pearl and diamond necklace by Raymond Yard, circa 1935, sold for $1.6 million after competition from three phone bidders, more than four times its high estimate. The piece was offered from the estate of Mary Lily Kenan Flagler.
* A Cartier sapphire and diamond bracelet in a fan design, circa 1960s, that fetched just over $1 million, just topping its high estimate.
* A ring set with a 1.08-carat pear-shaped fancy vivid blue diamond accented by round diamonds sold for $927,500, above estimates. The piece was offered by a Texan collector.
Source: Anthony DeMarco forbes.com
Botswana Diamonds acquires Sekaka from embattled Petra
Botswana Diamonds (LON:BOD) said on Monday it had completed the acquisition of Sekaka, the exploration vehicle that belonged to embattled rival Petra Diamonds (LON:PDL) and which held three prospecting licenses in the country’s Central Kalahari Game Reserve.
In one of its licenses, Sekaka had singled out the KX36 kimberlite pipe, which is situated about 70 km from Gem Diamonds’ Ghaghoo mine, and 260 km north-west of Botswana’s capital Gaborone.
SIGN UP FOR THE PRECIOUS METALS DIGEST
Sekaka also had a recently built, fit-for-purpose bulk sampling plant on-site that includes crushing, scrubbing, dense media separation circuits and X-ray recovery modules within a secured area.
The acquisition includes an extensive database, built up over 15 years of exploration.
Botswana Diamonds believes the information contained in the database will provide substantial support to its future kimberlite exploration activities in the mining-dependent country, the world’s second-largest diamond producer.
“We are delighted that this acquisition has now closed. This paves the way to explore commercial development options for KX36 and begin to evaluate the extensive database in conjunction with ours to discover more kimberlites in prime diamond real estate,” chairperson John Teeling said in a media statement.
Diamond exports from the southern African nation dropped 42% to $1.49 billion in the first nine months of this year as production fell 29% to 12.3 million carats due to covid-related restrictions.
Botswana’s mining sector provides a fifth of the country’s GDP and 80% of its foreign exchange earnings.
Mounting woes
Petra Diamonds, the former owner of Sekaka, has been struggling for over two years. Its weak financial position pushed it to shed non-core assets and put itself up for sale in June.
The company reversed the decision in October, opting instead for a debt-for-equity restructuring. The deal would leave existing shareholders with just 9% of the company.
Petra is also dealing with allegations of human rights abuses at its Williamson mine in Tanzania, resulting from the actions of its security guards.
It recently reported a 36% fall in revenue and a net loss of $223 million (168.7 million pounds) for the year ended June 30, as the coronavirus pandemic deepened the company’s financial woes.
Source: mining.com