Rough Diamonds – Page 34 – The Diamond Certification Laboratory of Australia (DCLA)

Petra Diamonds mulls selling Williamson mine

South Africa’s Petra Diamonds is considering selling its Williamson mine in Tanzania, even as it continues to work on bringing the operation back online in the second half of 2021.

Delivering its year-end results, Petra said that Williamson had been classified as a discontinued operation, which will mean an accounting loss of $52.1 million for the company. The mine was mothballed in April last year after diamond prices dropped following the global covid-19 outbreak.

BMO analyst Raj Ray said that while a sale could be viewed positively by the market, he sees potential risks in terms of realizing the value of $84 million (net book value of about $26 million at F2021 year-end) the bank ascribes to the asset, given the recent challenges.

“Recent efforts to procure a $25 million working capital facility with a local bank for the restart have so far been unsuccessful,” Raj wrote in a note to investors.

Petra has faced allegations of human rights abuses at the mine, resulting from the actions of its security guards.

The miner formed in February an internal committee to oversee the investigation, which concluded that “regrettable” incidents did take place at the mine in the past. Shortly after, it reached a £4.3 million (about $6m) settlement with claimants, even though it did not admit liability.

The company is currently engaged in talks with the Tanzanian government over a revised regulatory framework, which would lead to Williamson’s re-opening.

A key issue in those discussions concerns a parcel of 71,654 carats of diamonds effectively placed in limbo after deceased President John Magufuli blocked their export in 2017.

Turnaround
Despite covid-19 and issues at Williamson, Petra has staged a sharp turnaround in fortunes over the past financial year. It cut net debt by two-thirds in the year ended June 30 after a capital restructuring completed in March and rising sales drove strong growth in free cash flow.

Petra ended fiscal 2021 with net debt of $228 million, down from just under $693 million last year. Net profit reached $196.6 million, reflecting a $213.3 million gain after the successful debt restructuring.

Revenue rose 65% to $402.3 million on the back of higher sales of exceptional stones.

As for fiscal 2022, Petra reaffirmed production guidance of 3.3 million-3.6 million carats, with capital expenditure of $78 million- $92 million.

Source: Mining.com

Lucky Farmer Digs up his Sixth Diamond in Panna, India

An Indian farmer has recovered his sixth diamond in two years – a 6.47-ct gem valued at over $40,000.

Prakash Majumdar leases a small patch of land in diamond-rich Panna from the Madhya Pradesh state government.

The diamond, which he found last Friday, will be sold at a price fixed by the Government Diamond Office, and the proceeds – minus taxes and royalties – will be split between Majumdar and his four co-workers.

It’s not the biggest diamond he’s found. Last year he unearthed a 7.44-ct stone on the same plot and he’s found four other gems weighing 2-ct to 2.5-ct in the past two years.

Farmers typically pay $2.70 for the rights to dig a 25ft by 25ft patch of land in Panna district, which is estimated to have 1.2m carats of diamond reserves.

Last July laborer Anandilal Kushwaha (pictured) who leased a tiny square of land to dig for diamonds in Panna, Madhya Pradesh, unearthed a 10.69 carat stone valued at $67,000.

Source: IDEX

Lucara Recovers 1,174 Carat Diamond from the Karowe Mine in Botswana

Lucara Diamond Corp. is pleased to announce the recovery of a 1,174.76 carat diamond from its 100% owned Karowe Diamond Mine located in Botswana.

The diamond, measuring 77x55x33mm, is described as a clivage gem of variable quality with significant domains of high-quality white gem material, and was recovered from direct milling of ore sourced from the EM/PK(S) unit of the South Lobe.

The 1,174 carat diamond represents the third +1,000 carat diamond recovered from the South Lobe of the AK6 kimberlite since 2015 including the 1,758 carat Sewelô and 1,109 carat Lesedi La Rona.

The 1,174.76 carat diamond was recovered in the Mega Diamond Recovery XRT circuit. On the same production day, several other diamonds of similar appearance (471 carat, 218 carat, 159 carat) were recovered at the main XRT circuit, indicating the 1,174 diamond was part of a larger diamond with an estimated weight of > 2000 carats.

The MDR is positioned after the primary crusher, ahead of the autogenous mill, and is the first opportunity for diamond recovery within the circuit.

World’s third largest diamond discovered in Botswana

The diamond firm Debswana has announced the discovery in Botswana of a 1,098-carat stone that it described as the third largest of its kind in the world.

The company’s acting managing director, Lynette Armstrong, presented the stone, which was found on 1 June, to the country’s president, Mokgweetsi Masisi, on Wednesday.

It is the third largest in the world, behind the 3,106-carat Cullinan found in South Africa in 1905 and the 1,109-carat Lesedi La Rona discovered in Botswana in 2015.

“This is the largest diamond to be recovered by Debswana in its history of over 50 years in operation,” Armstrong said.

“From our preliminary analysis it could be the world’s third largest gem-quality stone. We are yet to make a decision on whether to sell it through the De Beers channel or through the state owned Okavango Diamond Company.”

The “rare and extraordinary stone … means so much in the context of diamonds and Botswana,” she said. “It brings hope to a nation that is struggling.”

The minerals minister, Lefoko Moagi, said the discovery of the stone, which is yet to be named but measures 73 by 52 by 27mm, could not have come at a better time after the Covid-19 pandemic hit diamond sales in 2020.

Debswana is a joint venture between Anglo American’s De Beers and the Botswanan government, which receives as much as 80% of the income from sales through dividends, royalties and taxes.

Production at Debswana fell by 29% in 2020 to 16.6m carats and sales fell by 30% to $2.1bn as the pandemic affected production and demand.

Debswana plans to increase output by as much as 38% to pre-pandemic levels of 23m carats in 2021 as the global diamond market recovers with the easing of travel restrictions and reopening of jewellers.

Source: theguardian

Lesotho joins the diamond league

The auction came as the Mountain Kingdom explores how to ensure diamond mines are at least 51 percent-owned by locals, which will include the entry of small-scale miners into the sector.

Lesotho’s diamonds are usually auctioned in Antwerp, Belgium. Buyers from as far as the Netherlands and Israel were joined by those from neighbouring South Africa and locals at the inaugural auction.

Launched by Deputy Prime Minister Mathibeli Mokhothu, the auction sold off diamonds collected from the public and those confiscated by the police in recent months. Of the 493 diamonds auctioned, 140 were voluntarily handed over by the public while 353 were confiscated by the police.

The government offered an amnesty from November 2020 to March 2021 to anyone in possession of undocumented diamonds, allowing them to hand the gems over without fear of prosecution. The auction was held from May 27 to 29.

Mining Minister Serialong Qoo said all revenue from the confiscated diamonds would be forfeited to the state and proceeds from gems voluntarily handed to the government would be paid into the holders’ bank accounts.

“I am very delighted that this day has finally come after it was initially delayed by the COVID-19 pandemic. This is a big move as parliament has now embraced the idea of letting Basotho mine with their picks and shovels legally,” said Minister Qoo.

Mining Ministry spokesperson Ms ‘Makananelo Motseko this week said a final report on the auction was being compiled and would be made public.

At the auction, Deputy PM Mr Mokhothu said, “We hope this local auctioning will spell the end for illegal diamond dealing as trade will be done securely and legally. This occasion gives me hope that soon, all of Lesotho’s diamonds will be sold in-country and benefit it economically.”

He also said Lesotho should move towards ensuring that at least 51 percent of shareholding in the diamond mines is held locally while investors would hold the remaining 49 percent.

Source: southerntimesafrica

Lucara Recovers 470 Carat Diamond from the Karowe Mine in Botswana

*470 carat diamond recovered from the Karowe Mine in Botswana*

Lucara Diamond Corp. is pleased to announce the recovery of a 470 carat top light
brown clivage diamond from its 100% owned Karowe Diamond Mine located in Botswana.

The diamond, measuring 49x42x26mm, was recovered from direct milling of ore sourced from the EM/PK(S) unit of the
South Lobe. The 470 carat recovery forms a notable contribution to a series of top quality gem and clivage quality
diamond recoveries during a recent production run, including an additional 5 diamonds greater than 100 carats
(265ct, 183ct, 161ct, 116ct, 106ct) and 13 diamonds between 50 and 100 carats in weight.

The May production run, dominated by EM/PK(S) ore, produced diamonds greater than 10.8 carat in weight accounting for 12.7% weight percent of total production, exceeding resource expectations. Continued strong resource performance and recovery of large diamonds reinforces the significance of the EM/PK(S) as an important economic driver for the proposed underground mine at Karowe.

The 470 carat diamond was recovered in the Coarse XRT circuit and represents the third +300 carat diamond
recovered to date in 2021. Year to date, Karowe has produced 10 diamonds greater than 100 carats including 6
diamonds greater than 200 carats, including the 341 carat (link to press release) and 378 carat (link to press release)
top white diamonds recovered in January 2021.

Petra puts “exceptional” 39-carat blue diamond up for sale

39.34 carat blue diamond recovered by Petra South Africa

South Africa’s Petra Diamonds has put a 39.34 carat Type IIb gem recovered at its iconic Cullinan mine in April up for sale, with viewings beginning June 15.

The company said the diamond of “exceptional quality” in terms of both its colour and clarity, will be showcased in Antwerp, Dubai, Hong Kong and New York.

Petra, which anticipates that the diamond will be sold via a special tender, said that biddings via its online platform will close on July 12.

While it didn’t set a price range for the stone, the miner said high-quality blue diamonds like the one for sale usually fetch the highest values.

Petra’s Blue Moon of Josephine diamond, cut from a 29 carat rough blue diamond, sold for $48.5 million in 2015.

The figure corresponds to a price of $4 million per carat, which remains the world record price per carat ever paid for a diamond.

Cullinan is known as the world’s most important source of blue diamonds, as well as being the birthplace of the 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa. The operation also yielded the 317-carat Second Star of Africa. They are the two largest diamonds in the British Crown Jewels.

Source: Mining.com

Lucara Secures $220M in Financing to Take Mine Underground

Lucara Diamond Corp. said it has secured $220 million in financing to help take the Karowe Mine in Botswana underground and extend its life by about 20 years.

Karowe is responsible for producing some of the most significant diamonds recovered in recent years, including the 1,109-carat “Lesedi La Rona,” which Graff bought for $53 million, and a 1,758-carat diamond that Louis Vuitton is turning into jewelry.

The credit-approved senior debt facilities include two tranches: $170 million to go toward the development of the underground mine and $50 million to support the ongoing operation of the open pit.

The underground expansion has an estimated capital cost of $514 million and is expected to take five years. The balance of development capital for the project is expected to come from cash flow from the mine’s ongoing open-pit operations.

In a statement announcing the financing, Lucara President and CEO Eira Thomas called securing the financing “an important achievement for Lucara and a strong endorsement of our underground expansion plans.”
She said the loans will supplement the cash flow from the open-pit portion of Karowe for the next five years and will extend the life of the mine from 2025 to at least 2040.

The five lenders on the $220 million financing facility for Lucara are: ING Bank N.V., Natixis, the London branch of Societe Generale, Africa Finance Corp., and Afreximbank. Thomas described them as having “significant mining and metals track records and experience in Africa.”

Closing on the facilities is subject to completion of definitive documentation and the satisfaction of certain terms and conditions, including Know Your Customer (KYC) checks.

The target closing date for the financing package is mid-2021, with financing expected to be in place by the second half of the year.

Lucara made the financing announcement the day before it released its first-quarter 2021 results.

Revenues totaled $53.1 million, or $579 per carat sold, for the miner in Q1. Net income was $3.4 million.

That is a significant improvement over Q1 2020, when the onset of the pandemic limited sales to $34.1 million and caused Lucara to record a loss of $3.2 million.

First-quarter 2021 results also are up when compared with 2019, when Lucara reported revenues of $48.7 million, or $512 per carat sold. Net income for the latter, however, was higher at $7.4 million.

The company said overall, the diamond market started 2021 in its healthiest position in five years following strong holiday seasons in the United States and China, and careful rough supply management by producers, which has helped to recalibrate polished inventories.

Source: nationaljeweler

Gem Diamonds ramps up production in Lesotho

Gem Diamonds announced Thursday that the company produced 29,010 carats at its Letšeng mine in Lesotho, which is 11% more than in Q1 2020 – 26,110 carats.

The company’s revenue for the period was US$43.9 million Q1 2020 – US$47.3 million and an average price achieved for the period was US$1,630 per carat Q1 2020 – US$1,615 per carat.

The company said that 5 diamonds sold for more than US$1.0 million each, generating revenue of US$12.4 million during the period.

The group ended the period with US$26.9 million of cash on hand excluding US$8.2 million of the March tender proceeds received after the period end. During the period, Letšeng paid the remaining dividend of US$10.0 million which was declared in 2020.

CEO Clifford Elphick commented, “It is pleasing to see that carat production during the period was up some 11% on the same period in 2020 and that the average price of US$1,630 per carat was also slightly up on Q1 2020. Although the production from the mining mix was not as impressive as the second half of 2020, with fewer large diamonds recovered due to the areas accessed under the mining plan, prices achieved on a like for like basis remained strong for Letšeng’s high value diamond production.”

The company said it anticipates that the mining mix should improve over the coming months as the richer parts of the Satellite pit are accessed in accordance with the mine plan.

Gem Diamonds is a leading global diamond producer of large high value diamonds. The company owns 70% of the Letšeng mine in Lesotho and is currently in the process of selling its 100% share of the Ghaghoo mine in Botswana. The Letšeng mine is famous for the production of large, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world.

Source: Vladimir Basov Kitco

Three +100 carat diamonds recovered at Lucapa’s Lulo mine

Lucapa Diamond Company and its partners Endiama and Rosas & Petalas have announced the recovery of three +100 carat diamonds by Sociedade Mineira Do Lulo from the Lulo alluvial diamond mine in Angola.

The 131-carat is a Type IIa D-colour diamond, the 118-carat is a brown diamond and the 133-carat stone is a lower-quality grey diamond.

Six +100 carat diamonds have been recovered from Mining Block 46 (MB46) in the last three months, reaffirming its recent elevation to the Lulo mining block with the best +100 carat diamond occurrence rate – one +100 carat diamond for every ~20,000 bcm’s of gravel.

The Canguige catchment and adjacent priority kimberlites are already the focus of the Project Lulo JV kimberlite exploration program, and the frequent recovery of large high-value diamonds underpins the prospectivity of this area.

Source: miningreview