Diamond News Archives

Lucapa recovered several coloured diamonds from its Mothae diamond mine operations in Lesotho, the company announced yesterday.

During a bulk sampling program, the company found the following:

• A 28 carat stone from the North zone of the Mothae kimberlite pipe
• 89 carat yellow from the South-East zone
• 25 carat yellow from the Neck zone
• 12 carat white from the North zone and 2 light pink diamonds

The Mothae kimberlite pipe is located within 5km of Letšeng, the highest dollar per carat kimberlite diamond mine in the world.

This bulk sampling program is being conducted in parallel with construction of the new 150 tonne per hour commercial diamond plant, which continues on schedule for H2 2018 commissioning.

The Mothae is 70% owned by Lucapa. Government of the Kingdom of Lesotho retains a 30% interest.

Written with material from Lucapa Diamond Company

The post Lucapa recovers coloured diamonds appeared first on MINING.com....

The following is an excerpt of a recent market comment that first appeared at The Felder Report Premium^[1].

What is the opposite of a margin of safety? That is a question this market has had me asking myself for some time now. A margin of safety is a discount to intrinsic value that provides a safety net in the result of an error in analysis or unforeseen negative developments. The opposite of a margin of safety then is a premium to intrinsic value than can vanish even if your analysis is correct or things go unexpectedly in your favor. There are times when a security reaches a valuation such that even if everything goes right you’re unlikely to profit. The price has already discounted a perfect outcome. This “priced for perfection^[2]” scenario is the opposite of a margin of safety and this is currently where the stock market finds itself today.

So what exactly is this perfection that is currently built into stock market valuations? First, equity valuations have risen in recent years to their record heights^[3] at present as a result of investors making a classic mistake. Whether consciously or unconsciously, they have essentially lowered the discount rate in their valuation models without also lowering the assumed growth rate of earnings. As Cliff Asness demonstrated years ago in his paper “Fight The Fed Model^[4],” this is clearly irrational behavior. Because interest rates and earnings growth are so highly correlated one cannot be modified without the other in a discounted cash flow model. In other words, falling interest rates do no justify higher equity valuations. This doesn’t, however, stop investors from believing this very thing^[5].

Furthermore, for this decision to...

Sen. Rand Paul (R., Ky.) still hasn’t persuaded his colleagues to audit the Federal Reserve’s conduct of monetary policy. Perhaps lawmakers could simply agree that the Fed should stop destroying documents.

“Borrowed Time,” a history of Citigroup publishing today and co-authored by your humble correspondent and Vern McKinley, finds that the bank was in many ways healthier and more stable during the century when it was independent than during the roughly 100 years it has been supported by the federal government. But the government... ...

(IDEX Online) – DIAMONDS ALROSA, the cutting and polishing division of ALROSA, held a tender for the sale of polished diamonds in the USA last month. It was the first tender for polished diamonds after the reopening of ALROSA's office in New York.<?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

In total, 111 stones of standard color with total weight of 308.97 carats were sold, the miner reported. The total revenue from sales amounted to $1.5 million. Companies from the largest diamond industry centers, including Belgium, India, Israel and the US, participated in the tender.

"We brought to New York polished diamonds of various cuts, weighing from 2 to 6 carats. We were pleased to see great interest from American buyers, especially given the fact that this was our first tender in the US after a long break. We also succeeded in attracting new clients, and by the end of this year, we hope to hold one more tender, where we will bring a more interesting assortment", said Pavel Vinikhin, director of DIAMONDS ALROSA.

The United States is the world's largest market for the consumption of diamond jewelry. The ALROSA office in New York was opened in 2006, but has not been operating for organizational reasons since 2016, it. Work was resumed at the office last spring.

ALROSA's trading offices are also located in the world's major diamond centers: Antwerp, Hong Kong, Dubai, Ramat Gan, and there is also a representative office in Mumbai.

DIAMONDS ALROSA is ALROSA's own cutting and polishing division and one of Russia's largest diamond manufacturers. It works with large rough diamonds over 1.8 carats,...