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Ali Pastorini: Selling just the idea of glamour is no longer enough

Ali Pastorini is the co-owner of DEL LIMA JEWERLY and President of Mujeres Brillantes, an association which brings together approximately 1000 women working in the gold and diamond trading sector, mainly from Latin America, as well as from Turkey, Spain...

21 may 2018

Diamonds are shifting from occasional to daily wear

Joy Alukkas started his first jewellery showroom in UAE in the year 1987, and today the Joyalukkas Group is a multi-billion global conglomerate with varied business interests. Beginning with a single jewellery room in Abu Dhabi, Joy Alukkas has grown...

14 may 2018

GJC has played a crucial role in the last 10 years in improving the compliance level in the industry

Coming from a renowned family of jewellers based in Akola, Maharashtra, Nitin Khandelwal heads Khandelwal Jewellers (Akola) Pvt Ltd. He has interests in the Plastic industry, Real estate, Health & Recreation and Cold storage industries as well...

07 may 2018

Johnson: ASM diamond sector a potential new source of supply for De Beers

De Beers recently said that it is planning to pilot a programme called GemFair that will create a “secure and transparent route” to market for ethically-sourced artisanal and small-scale mined (ASM) diamonds. GemFair would partner with the Diamond...

03 may 2018

Zimnisky: Hard to protect lab-diamond price as production methods, economics improve

Paul Zimnisky, an independent diamond industry analyst and consultant, said it will be very difficult for the lab-diamond manufactures to protect price as production processes and economics improve. He told Rough & Polished’s Mathew Nyaungwa in an exclusive...

23 april 2018

Finsch, Cullinan projects should deliver before Petra’s shares start to perform

10 may 2018
Goldman Sachs said although the market view on diamonds has improved over the last six to 12 months, Petra Diamonds’ investors need to see delivery of the Finsch and Cullinan projects in South Africa and the much promised free cashflow inflection, before the shares start to perform.
MiningMx reports that the company’s aggressive expansion campaign to 5-million carats from less than a million had led to a huge debt build, which was further compounded by the weaker South African rand, a number of operational setbacks, and weaker diamond prices.
However, RBC Capital Markets, a global investment bank, said the diamond market appears to be on the cusp of a recovery.
MiningMx quoted the bank as saying that De Beers production downgrade from 2019 to 2020, which would bring between 2-million and 4-million carats of diamonds out of the market or 2.5 percent of the global market, was expected to boost prices.
“We expect diamond prices to recover 4.5% in the 2018 calendar year and a further 3.4% in the 2019 financial year as prices begin the shift back towards tighter markets,” it said.
The company was said to be focusing on paying its debt, which was at $644.7 million as of December 31.
It recently concluded an agreement with its lenders for a waiver of its December 2017 EBITDA covenants related to its banking facilities and a resetting of debt agreements for 2018.
The new debt covenants struck with Absa Bank, Nedbank, Firstrand Bank and Investec Asset Management would allow for the interest rate on the loans to increase by up to two percent subject to how much the ratio of Petra's net debt to consolidated EBITDA was breached.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished

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