Petra Diamonds – Page 11 – The Diamond Certification Laboratory of Australia (DCLA)

Russia Crisis Puts Diamond Marketing in Jeopardy

The Natural Diamond Council (NDC) is facing a massive budget cut in 2023 unless the industry steps in to compensate for the loss of Alrosa’s financial contribution, CEO David Kellie told Rapaport News.

“We’ve probably been impacted more than anybody [by sanctions against Russian diamonds] in as much as Alrosa was almost half of our funding,” Kellie said in an interview on Thursday. “I want people to understand that we are facing this financial shortfall, and it’s up to the industry to figure out whether we want to be successful or not.”

Following Russia’s invasion of Ukraine and subsequent sanctions placed on Alrosa, in March the miner suspended its membership of the NDC, which is mandated to promote natural diamonds on behalf of the industry. The company also stepped down from the NDC board and notified that it would cease all financial contributions.

Alrosa accounted for 45% of the NDC’s $70 million annual budget. De Beers contributes an equal amount, and the remaining members — Lucara Diamond Corp., Arctic Canadian Diamond Company, Petra Diamonds, Rio Tinto and RZM Murowa — make up the rest. India’s Gem and Jewellery Export Promotion Council (GJEPC) also contributes.

The loss of Alrosa’s estimated $31.5 million will not affect the NDC’s 2022 budget since it receives funding in advance of its spending plans, Kellie noted. Rather, it impacts the group’s plans going into 2023, “leaving us with a significant challenge for next year,” he stressed. “We need to resolve this by October time to have visibility as to what our strategy will be for next year.”

Now in his third year as NDC CEO, Kellie is appealing to others in the industry to support the organization and enable it to build on the strong growth experienced last year. The jewelry sector saw double-digit growth in 2021, exceeding pre-pandemic levels, by most reports. The spike in demand also had a positive ripple effect on the rest of the diamond and jewelry market.

“I think we’ve proven what we’re capable of doing since launching the Natural Diamond Council, and the impact of consumer demand on our industry,” he explained. “The last year and a half has demonstrated that the whole value chain is dependent on consumer demand.”

The NDC launched in mid-2020, rebranding from the Diamond Producers Association (DPA) as the body responsible for category marketing and driving consumer interest in diamonds. It shifted from a reliance on one central advertising campaign toward continuous content creation suitable for all platforms, particularly social media.

Now, after Alrosa has withdrawn its funding, the NDC needs more stakeholders from the industry to fill the void, Kellie pointed out. A fraction of revenue from various points in the supply chain would massively change the ability of the NDC to drive consumer demand, he noted.

The organization is still considering how companies can contribute, as well as the general appeal it is making, which would have to align with its legal structures and bylaws. Currently, funding could be via a voluntary contribution by corporations or through retail partners investing in their locality by using the NDC’s marketing assets — an avenue that has grown over the past two years, Kellie said.

He is calling on the industry to demonstrate leadership to drive consumer demand for diamonds.

“It’s a case of how we are going to keep this incredible industry moving forward,” he stressed. “My view remains that we are half the size that we should be if we look at the industry as part of luxury and not as a commodity. I would love to continue to drive this industry forward and to build it to what I believe it should be.”

The NDC is currently shooting its 2022 campaign, which will be unveiled around September, ahead of the holiday season. Kellie declined to confirm whether actress Ana de Armas had signed as ambassador for natural diamonds for a third year.

Source: Diamonds.net

De Beers rises small diamonds price amid shortage

De Beers, the world’s top diamond producer by value, has once again increased the price of its smaller stones as sanctions on Alrosa, its Russian rival, have worsened a global shortage caused by two years of covid-related shutdowns.

The Anglo American unit had hiked prices by about 8% at its first sale this year, with the sharpest increases of up to 20% affecting small-scale roughs, as demand reached pre-pandemic levels.

Prices for these diamonds, which usually end up clustered around the solitaire stone in a ring, have soared since early April, when Alrosa was targeted by US sanctions related to Russia’s invasion of Ukraine.

Diamonds are one of Russia’s top ten non-energy exports by value, with shipments in 2021 totalling over $4.5 billion, and its state-owned diamond producer is responsible for about a third of global supply.

Unlike Alrosa, De Beers doesn’t produce much of diamonds used in lower-end jewellery usually found a chain stores such as Costco or Walmart which is creating increasing shortages as Alrosa’s ability to supply the market remains uncertain.

People familiar with the matter told Bloomberg that De Beers applied a 5% to 7% price increase this week in Botswana, where the company holds 10 sales each year in events known as sights.

Around 60 handpicked customers known as sightholders are given a black and yellow box each time. These contain plastic bags filled with stones, with the number of boxes and quality of diamonds depending on what the buyer and De Beers had agreed to in an annual allocation.

De Beers rises small diamonds price amid shortage
Prices for small rough diamonds, the type that would end up clustered around the solitaire stone in a ring, are climbing.

*Prices for small rough diamonds are climbing.*

The miner increased the price of its rough diamonds throughout much of 2021 as it sought to recover from the first year of the pandemic when the industry came to a near halt.

The strategy, which applied to stones bigger than 1 carat, granted De Beers a steady recovery during the year, with prices gaining 23% in just over a year, parent company Anglo American said in a December presentation.

De Beers now only carries working inventory stocks and its mines are running at full tilt. There is little chance of material increases in supply before 2024, when a $2 billion underground expansion of its Venetia mine in South Africa is expected to be completed.

The diamond jewelry industry is going into the year with diamond supply at historically low levels, estimated by Bain & Company at 29 million carats in 2021. “Upstream inventories declined ~40%, driven by high demand and slow production recovery, and are near the minimal technical level,” the report stated.

Source: mining.com

All GIA Reports to Be Digital by 2025

The Gemological Institute of America (GIA) plans to convert all of its paper reports to digital within the next three years, beginning with its Diamond Dossier in 2023.

The digital reports, which it will link to an app, will be more secure than their paper counterparts, the GIA said Tuesday. They will be paired with a new inscription-matching service, called GIA Match iD. This feature captures a diamond’s inscription image and links the stone to its GIA report using artificial intelligence (AI).

As each report category is introduced in digital form, the printed reports will be discontinued, the GIA told Rapaport News. However, some specialty services, such as the Monograph reports and notable letters, will continue to be available in printed versions.

“Digital reports…build on our decades of innovation and move our consumer protection mission forward,” said GIA CEO Susan Jacques. “This important transformation allows GIA to offer consumers a truly modern and engaging experience while helping our industry progress toward a more sustainable future.”

Starting in January 2023, the new Diamond Dossier service will offer a fully digital report, including the 4Cs; the app, which enables retailers and consumers to view, save and share information for their diamonds; and the Match iD instrument.

The elimination of GIA paper reports will save 20 tons of paper and 18.5 tons of plastic each year, the GIA said. It will also reduce transportation-related carbon emissions, the institute added.

Source: Diamonds.net

US Demand, Uncertain Supply Buoy Diamond Prices

Diamond trading was stable in May despite concerns about inflation, rising interest rates and slumping stock markets. Polished prices initially declined but later steadied as dealers anticipated supply shortages resulting from Russian sanctions.

The RapNet Diamond Index (RAPI™) for 1-carat diamonds slid 0.5% in May but was 9.3% higher on June 1 than at the beginning of the year.

RapNet Diamond Index (RAPI™)
	May	Year to date Jan. 1 to June 1	Year on year June 1, 2020, to June 1 2021
RAPI 0.30 ct.	0.6%	1.3%	-0.1%
RAPI 0.50 ct.	-0.3%	5.8%	8.2%
RAPI 1 ct.	-0.5%	9.3%	22.1%
RAPI 3 ct.	-0.3%	10.6%	25.7%

US demand is supporting the market even as economic uncertainty sets in. Expectations are rising for the Las Vegas shows, which begin June 8. Dealers hope the positive sentiment will boost trading in the second half of the year. Chinese wholesalers remain cautious as activity resumes after the country’s Covid-19 lockdowns.

Inventory levels are high but have decreased in select categories. The number of diamonds on RapNet stood at 1.8 million as of June 1, up 43% from a year earlier. The quantity of 0.30-carat, D- to H-color, IF- to VS-clarity goods fell 14% in May; 0.50-carat diamonds in the same range declined 11%. Both categories were still significantly above last year’s levels.

While the sanctions on Russian goods have not yet caused notable polished scarcities, shortages are likely in the coming months. Rough supply has dropped since Alrosa canceled its March and April sales. Prices at rough auctions have increased — particularly in the small-diamond category, which Alrosa dominates. De Beers raised prices of small rough at its latest sight from June 6 to 10.

The market is splitting into two segments: Russian and non-Russian goods. Some big cutters are finding ways to buy Alrosa rough in order to serve centers that remain open to buying Russian-origin polished. These diamonds will likely sell at a discount to non-sanctioned ones.

US and European jewelers and brands may have difficulty filling their sourcing requirements in the coming months without Russian supply. This will lend further support to diamond prices.

Source: Diamonds.net

Gem Diamonds unearths 125-carat diamond in Lesotho

Africa-focused Gem Diamonds has found a 125 carat rough stone at its Letšeng mine in Lesotho, the miner’s second rock over 100 carats mined this year.

The company, known for the recovery of large, high quality stones in 2020, has seen output of high quality diamonds surpassing the 100 carat mark become less frequent over the past year.

In 2021, Gem Diamonds found only six of such diamonds at Letšeng, compared to the 16 it discovered in 2020.

The find comes as prices for small diamonds have jumped about 20% since the start of March, as cutters, polishers and traders struggle to source stones outside Russia.

State owned Russian miner Alrosa, the world’s top diamond producer by output, was hit with US sanctions following Moscow’s invasion of Ukraine.

Higher prices for lower end stones are good news for miners, but not a game changer, experts say. While every mine is different, a general rule is that 20% of production the best stones account for about 80% of profits.

Since acquiring Letšeng in 2006, the company has found more than 60 white gem quality diamonds over 100 carats each, with 16 of them recovered last year. At an average elevation of 3,100 metres (10,000 feet) above sea level, Letšeng is also one of the world’s highest diamond mines.

Source: mining.com

Gem Diamonds’ Revenue Rises in Q1 2022

Gem Diamonds’ revenue in Q1 2022 (ending March 2022) has gone up 4% quarter-on-quarter and 19% year-on-year to $52.1 million, IDEX Online reports.

The miner, which owns 70% of the Letseng mine in Lesotho, sold 28,461 carats during the quarter – a rise when compared to the 24,790 carats it sold in the previous quarter. However, prices fell from $2,018 to $1,831, according to the report.

Clifford Elphick, Gem Diamonds’ CEO, said: “We remain confident about the outlook for diamond prices, particularly for Letseng’s large high-value diamonds with an average price of $1,831 per carat achieved during the period. Prices achieved on a like-for-like basis continued the largely upward trend from 2021.”

Source: israelidiamond.co.il

Christie’s to Auction $18M D-Flawless Diamond

Christie’s will offer a 103.49-carat diamond that could fetch up to $18 million at its upcoming New York sale.

The emerald-cut, D-Flawless, type IIa stone, called the Light of Africa diamond, will headline the auction house’s Magnificent Jewels sale on June 8, it said Monday. It will be among the items featured as part of Christie’s luxury week.

The diamond was cut from a 299.3-carat rough Petra Diamonds recovered from its Cullinan mine in South Africa in January 2021. Petra then sold the diamond to Dubai-based diamond-sourcing and supply company Stargems DMCC in March of that year for $12.18 million. It is the third-largest high-quality white diamond recovered from Cullinan since Petra acquired it in 2008, the miner noted.

Christie’s will preview the diamond in Geneva from May 6 to 11, followed by Hong Kong from May 22 to 24, before showing it in New York between June 3 and 7.

Source: Diamonds.net

Star Diamond confirms Type IIa high value diamonds at Orion North, Taurus kimberlites

Star Diamond has completed a study into the abundance of Type IIa diamonds in parcels recovered from the Early Joli Fou geological units at the Orion North (K120, K147 and K148) and Taurus kimberlites (K118, K122 and K150).

The pipes are located within the Fort a la Corne diamond district of central Saskatchewan, including the Star–Orion South diamond project, on properties held in a joint venture with Rio Tinto Exploration Canada.

These diamond parcels were recovered by Star Diamond between 2006 and 2008 from 120-cm diameter drilling programs. The latest study confirms that unusually high proportions of Type IIa diamonds are present in both the Orion North and Taurus kimberlites.

Of particular note is the high proportion of Type IIa diamonds in the Orion North 147-148 EJF (52%), of which 66% of the 24 stones, 0.66 carats and above are Type IIa. The largest Type IIa diamond identified was a 6.88-carat stone from Orion North (K147-K148 EJF).

Senior technical advisor George Read said that the Type IIa diamonds at Orion North and Taurus are top white in colour, Type IIa diamonds are rare and account for less than 2% of all natural rough diamonds mined from kimberlites. Many high-value, top colour, large specials (greater than 10.8 carats) are Type IIa diamonds, which include all 10 of the largest known rough diamonds recovered worldwide.

The study also confirms and augments an earlier study of Type IIa diamonds being present in the Fort a la Corne kimberlites with Star (26.5%) and Orion South (12.5%).

A target for further exploration completed by Star Diamond in 2014 estimated that between 881 million and 1.04 billion tonnes of the major EJF units, containing between 46 and 79 million carats, occur within the Orion North and Taurus kimberlite clusters.

Orion North (K147, K148 and K220) alone is estimated to contain between 340 million and 410 million tonnes of EJF kimberlite with an estimated range of grade of 2.75 to 8.37 carats per hundred tonnes.

Source: mining.com

Sotheby’s Rakes In $57.5M for De Beers Blue

A record blue diamond co-owned by De Beers far outstripped its presale estimate in a stand-alone sale at Sotheby’s in Hong Kong, garnering HKD 450.9 million ($57.5 million), the auction house said Wednesday.

*The 15.10-carat De Beers Cullinan Blue diamond*

The step-cut, 15.10-carat, fancy-vivid-blue, internally flawless stone, called the De Beers Cullinan Blue, is the largest of its color to appear at auction. The stone, which sold to an unnamed buyer, had been expected to fetch up to $48 million.

Petra Diamonds discovered the 39.35-carat rough in April 2021 at its Cullinan mine in South Africa. In July, De Beers and Diacore bought the stone for $40.2 million, and Diacore manufactured the piece into the final polished.

To date, only five blue diamonds weighing more than 10 carats have come to auction, none of which has exceeded 15 carats, Sotheby’s explained. Similar blue diamonds have also fetched high prices, including the Blue Moon of Josephine, a cushion-shaped, 12.03-carat, fancy-vivid-blue, internally flawless diamond that sold for $48.5 million at Sotheby’s Geneva in 2015. Meanwhile, the Oppenheimer Blue, a step-cut, 14.62-carat, fancy-vivid-blue, VVS1-clarity stone, garnered $57.5 million at a Christie’s Geneva sale in 2016.

Source: Diamonds.net

Christie’s to Sell the Red Cross Diamond

One of the world’s largest yellow diamonds weighing 205.7 ct and known as the Red Cross Diamond is to be auctioned by Christie’s London.

The fancy intense yellow, cushion-shaped stone has a pavilion distinctively faceted in the shape of a Maltese cross.

The original rough gem was recovered by De Beers, in South Africa, in 1901 and was sold in 1918 in aid of the British Red Cross Society and the Order of St John.

It raised $13,000 equivalent to $780,000 in today’s money when it was sold at Christie’s London to the famous London firm S.J. Phillips.

It was sold again in November 1973, achieving CHF 1.8 million at Christie’s Geneva and returned to private ownership.

The diamond will again be offered for sale at Christie’s London on 11 May, with an undisclosed part of the sale revenue to be donated to the International Committee of the Red Cross.

We have asked Christie’s for the estimate, which is available “on request”.

Source: IDEX