Vladimir Zboykov: New times have come for jewelers

How a personal collection of minerals was thrown on the scrap-heap, who is behind the destruction of gemstone consumption culture in Russia and why jewelers will soon have to choose between business and prison – all this was told to Rough & Polished...

Yesterday

Changing preconceptions in the diamond and financial markets

Eli Avidar is a man on the move…literally. In April, the former Israeli diplomat stepped away from the CEO’s office at the Israel Diamond Exchange, a position he had held for more than two years, and from the Israel Diamond Institute, where he had been...

13 august 2018

Chasing a dream…

Elina Chan, MD of Shenzhen Shi Qing Yu Zhubao Ltd completed her higher education from Xiamen University and Master’s degree from Hong Kong University. To achieve her dream to start a business, Elina gave up numerous job opportunities in Hong Kong and...

06 august 2018

Pangolin Diamonds using termites to find kimberlite indicators in Botswana

It is not a secret that the rate of kimberlite discovery in Botswana has dropped considerably and research has shown that termites can help diamond explorers have an understanding of the transport mechanism of kimberlite indicator minerals from the kimberlite...

30 july 2018

In another fifty years, we’ll have a different scale of valuation, and all those items of natural origin – including diamonds – will sharply increase in price

Within the framework of the Qatar-Russia 2018 Year of Culture, the World Diamond Museum hosts an exhibition of the Qatar Museums at the State Historical Museum in Moscow – "Pearls: Treasures of the Seas and the Rivers," that opened on 11 July...

24 july 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