Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

De Beers’ GemFair ropes in more than 160 Sierra Leone artisanal miners

De Beers inaugurated its GemFair pilot programme in Sierra Leone’s Kono District with 14-member mine sites in 2018 to create a secure route to market for ethically sourced artisanal and small-scale diamonds. GemFair programme manager Ruby Stocklin-Weinberg...

16 august 2021

De Beers Sales Fall Most Since 1974 on Gem Demand

27 july 2009

De Beers, the world’s largest diamond company, posted the biggest drop in sales of unpolished and uncut gems since at least 1974 after demand crumbled as the U.S., Europe and Japan slid into recession, Bloomberg reported.
First-half sales of rough diamonds slid 57 percent to $1.4 billion, De Beers said today in a statement. They were $3.7 billion a year earlier. Output fell 73 percent to 6.6 million carats after the Johannesburg-based company shut mines in Botswana and Namibia. It had a so-called underlying loss of $164 million, compared with prior-year earnings of $350 million.
This year’s output will drop by about half from 2008, said De Beers, which mined 48.1 million carats last year. Rough- diamond prices slid about 50 percent on average between October and mid-March, said RBC Capital Markets analyst Des Kilalea. Second-quarter confidence among wealthy Americans rose by a record, signaling the worst of the recession is over for sellers of luxury goods, researcher Unity Marketing said on July 23.
 “The second half will be better,” Gareth Penny, managing director at De Beers, the world’s largest diamond company, said today on a conference call.
The gem producer declined to provide a date for comparing the magnitude of the first-half drop. The plunge is the biggest in the records of Johannesburg-based Allan Hochreiter Ltd., said James Allan, founder of the corporate-finance company.
 “I am much more optimistic than I was in the first quarter,” Allan said. “We are not out of the woods yet.”
Penny also said De Beers, which is 45 percent-owned by Anglo American Plc, has yet to use $500 million borrowed in February from shareholders to help cope with the slump in gem demand. The diamond producer has no plans to sell shares to raise funds, he added.
 “We feel we’ve got the facilities and enough cash going forward,” Penny said. “We are not out of the woods yet.”
The loss exceeded the $112 million estimate of Johann Pretorius, an analyst at Nedcor Securities in Johannesburg.
Anglo fell 22 pence, or 1.1 percent, to close at 1,916 pence in London trading, paring yesterday’s 5 percent gain.
Prices of rough diamonds have advanced almost 30 percent since the middle of March, according to RBC’s Kilalea, who is based in London. Traders “have been willing to pay higher prices,” Peter Davey, head of mining research at Ambrian Partners Ltd., said from London today, adding that prices were still below last year’s peaks.
De Beers is in talks with banks to renew a $1.5 billion term loan facility that expires next March. Discussions are expected to close in the second half, the company said. Net debt was $4.06 billion at the end of the first half.
Namdeb, a joint venture between Namibia’s government and De Beers, temporarily halted production from the beginning of April. Debswana, the joint venture between De Beers and Botswana’s government, suspended operations in February.
De Beers has cut 4,700 jobs from all of its operations, Penny said, adding that some workers may get their jobs back when mining production rises.
De Beers, which traces its history back to 1888, is 40 percent-owned by the Oppenheimer family. Botswana controls 15 percent.