Diamond News Archives

The Perth Mint gold bullion bar and coin sales reached 120,504 troy ounces in April, while silver bullion sales were 2.1 million oz. Thus, the Perth Mint sold 17 times more silver bullion than gold last month. Figures in the chart below are shown in troy oz.

(IDEX Online) - Dominion Diamond Mines is to sell its assets to avoid bankruptcy, recall is furloughed workers and resume operations.

The troubled Canadian company, which has been in creditor protection since April, has reached an agreement with The Washington Companies, which will acquire its assets for $126m and assume responsibility for most of operating liabilities.

The privately held conglomerate, based in Montana, USA, bought bought Dominion for $1.2 billion in 2017^[1].

The deal provides Dominion with a $60m cash injection that will allow it to meet its financial obligations and start production again at its Ekati mine, in Northwest Territories, Canada.

Dominion, the world's third largest producer of rough diamonds by value, has signed a memorandum of understanding and the deal should be completed in 90 to 120 days.

Dominion also has a minority 40 per cent joint venture stake in the Diavik mine, in Northwest Territories.

A judge ruled last week that majority holder DDMI, a Rio Tinto subsidiary, could withhold some diamonds until Dominion pays its share of operating costs.

 

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If there’s a crisis will you be able to get any cash out of the bank? Will the banks even have any cash? Because, as of last March, it is no longer a requirement - the banks aren’t required to have a single dollar bill.

(IDEX Online) - Alrosa has followed De Beers' example by announcing a significant cut to expected production this year, in response to COVID-19.

The Russian state-owned miner's has revised down its 2020 forecast by as much as 17.6 per cent, from 34m carats to between 28m and 31m.

Last month De Beers said it would reduce production this year from between 32m and 34m carats to between 25m and 27m carats.

Between them, the two companies produce just over half of the world's diamonds.

Alrosa said it was temporarily shutting down some of its biggest mines to prevent a build-up of unwanted diamonds.

It has shifted its position after indicating last month that it still planned to meet its full-year production target for 2020 of 34.3m carats.

Alrosa's rough and polished sales slumped to $15.6m in April, down from $405m in January, before the impact of coronavirus.

The company has suspended operations at Aikhal (pictured), one of the world's largest diamond mines, and at the newly-opened Zarya pipe.

It also plans to cease commercial production at the Verkhne-Munskoye deposit, another of the world's largest mines, from early June until October.  The three mines produce over 4m carats annually between them.

"Production cuts are expected to come at the expense of operations that have weaker margins due to lower diamond quality and price," the company said in a statement.

"The coronavirus pandemic and steps taken to fend it off have had their toll on the demand for diamond jewellery, which saw strong growth earlier in the year.

"Temporary shutdown of such production sites will help avoid build-up of stocks of diamonds least sought after in the market."...