How Russkiye Samotsvety is coping with the current downturn

One of the key issues facing most Russian companies today is the need for an objective assessment of the new consumption decline due to the quarantine, as well as making forecasts for a way out of it. According to a RBC-Petersburg’s study made in June...

Yesterday

Global rough diamond sales down 80-90% in value in Q2 –Zimnisky

The COVID-19 pandemic, which is spreading across the globe, having originated from China’s Wuhan has left diamond traders and buyers at sixes and sevens. Traditional diamond tenders were cancelled around March as governments imposed travel restrictions...

27 july 2020

Indian diamond and polishing industry requires forward integration - Dinesh Navadiya

Dinesh Navadiya is now the Regional Chairman (Gujarat Region) of The Gems & Jewellery Export Promotion Council (GJEPC) of India for the 3rd term. He is also the Director on the Board of the Gem & Jewellery Skill Council of India (GJSCI)...

20 july 2020

GJEPC will focus on demand generation for diamonds and jewellery in the next two years

Mr. Vipul P Shah, Vice Chairman, GJEPC and also CEO & Managing Director of Asian Star Co. Ltd. has a rich experience in the diamond industry. His business acumen and professional conduct have contributed significantly in transforming a diamond manufacturing...

13 july 2020

The need for significant capital investments will be the main trend in the diamond mining industry in 2021-2030

The prospects of the diamond industry in the post-crisis period are discussed by the Rough&Polished correspondent with Sergey Mityukhin, Candidate of Geological and Mineralogical Sciences, Honored Geologist of the Russian Federation.

06 july 2020

Petra FY20 output, revenue slip

24 july 2020
Petra Diamonds produced 3.59 million carats during the year ended 30 June 2020, a 7% drop from 3.87 million carats, a year earlier.
It said production was severely disrupted by the lockdown implemented in South Africa from 26 March 2020 and the Williamson mine in Tanzania being placed on care and maintenance in April 2020.
Petra said production guidance for FY 2021 will be provided once a sustainable level of operational stability has been reached.
The group’s revenue also decreased 36% to $295.8 million compared to the previous year’s $463.6 million, reflecting weaker prices during the period to February 2020.
Significant price reductions and major disruptions to the planned sales cycles following the outbreak of the COVID-19 pandemic also worsened the situation.
“Despite our robust underlying business, significantly reduced revenues that are the result of a disrupted diamond market have required us to formally engage with our note holders and consider other strategic options to deliver a more sustainable capital structure going forward,” said Petra chief executive Richard Duffy.
The group’s net debt was $658 million as at 30 June 2020 from $601 million as at 31 March 2020.
Petra said it is continuing to explore strategic options to evaluate the optimal capital structure for the long-term success of the business, which includes running a formal sale process to invite suitable and deliverable offers for either the group or one or more of its assets.
Commenting on the diamond market, Petra said the disruption to supply caused by the COVID-19 pandemic will serve to exacerbate the longer-term trend of declining supply.
Data recently released by the Kimberley Process saw production by volume down 12% from 148.4millio carats in 2018 to 130.3 million carats in 2019 and down 7% by value from $14.5 billion in 2018 to $13.5 billion in 2019.

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