Diamond News Archives

Feb 19 (Reuters) – Petra Diamonds Ltd said core earnings fell 8 percent in the first half of the year, hurt mainly by a strike at its South Africa operations and the blocking of a consignment of diamonds in Tanzania.

The miner issued a profit warning and cut its production forecast last month after it faced a string of issues, including a three-week strike at its South Africa operations and the blocking of a consignment of diamonds in Tanzania that led it to flag a possible breach of two of its debt covenants in October.

Petra, which was accused of under-declaring the value of the stones, is caught up in an industry-wide crackdown by the Tanzanian government in an effort to reap more revenue from its minerals. Petra has denied this.

The company has also been hit by the strengthening of the South African rand. Miners in South Africa pay costs in rand and earn revenue in dollars.

The company's adjusted earnings before interest, tax, depreciation and amortization fell to $80.1 million in the six months ended Dec. 31, from $87.1 million a year ago.

Petra said output rose 9.6 percent to 2.2 million carats (mcts) in the first half, while carats sold fell 5.2 percent to 1.8 million due to the blocked diamond parcel not being sold.

The company said it expects to produce 2.4 – 2.5 mcts in the second half and added that it expects 2018 revenue in line with consensus.

"The diamond market is currently experiencing positive momentum post the healthy Christmas sales period, with pricing up about 3 percent to 4 percent sequentially on a like-for-like basis based on the company's first tender for the second half of the year," Petra said.

The company, which is currently at peak debt levels at $644.7 million, also said it has sufficient banking facilities to meet its working capital and capital development requirements and it maintains headroom against its revised financial covenants going forward.

It expects net debt of about $600 million by June 30, at the higher end of the $560 million to $600 million range it forecast in January.

(Reporting by Arathy S Nair in Bengaluru; Editing by Sunil Nair)

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(IDEX Online) – The Bharat Diamond Bourse (BDB) in Mumbai, expects at least 1,000 visitors from India and abroad to take part in the first Bharat Diamond Week, to be held at the exchange from April 23-25, the exchange said. <?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

The event will see 225 Indian companies displaying polished diamonds to buyers from across the world.

"We have seen enormous interest in the Bharat Diamond Week, which was previously called the India Diamond Week, in just the two weeks since we initially announced it," said Bharat Diamond Bourse Vice-President Mehul Shah, who is heading the Diamond Week project. "We expect formal registration to start towards the end of February with the launch of the Bharat Diamond Week site, but companies have already been contacting us to register their interest.

"We knew there would be strong interest in the Diamond Week because India is such an important polishing and trading centre, and we are delighted with the initial response," he said, adding that the BDB will be booking around 200 complementary hotel rooms in order to host foreign buyers who will be taking part.

The Bharat Diamond Week is set to feature a display of synthetic diamond detection equipment with competitively priced services, together with specially organized seminars and meetings on the issue of synthetics, Shah said. "The synthetics part of the Diamond Week is going to bring a great deal of added value for attendees, with the latest updates on this important issue," Mr Shah said.

BDB President Anoop Mehta said: "Our expectations have already been exceeded, and we are very excited about just how many buyers are going to attend. The need for such a Diamond Week in India is clear. As the world's major manufacturing centre and the heart of global diamond trading, there is no better place for buyers to come to view an incredible range of polished stones. We have literally every type, size and color of diamonds available.

"I strongly recommend that our friends and colleagues from around the world be in touch with us to register their interest even before the official registration site goes online. We don't want anyone to be disappointed because this is going to be an extraordinary event. It's not just about transactions, it's also about making contacts and networking which is a vital element of our business," Mehta added.

Meanwhile, Shah added that priority will be given to members of bourses affiliated to the World Federation of Diamond Bourses (WFDB), but all members of the diamond trade across the world are encouraged to attend.

"We are planning a range of activities in the run-up to the Bharat Diamond Week, including a cricket tournament from April 8-15. There will be...

ALROSA, the world's largest diamond mining company, summed up the results of the contest "She said "YES!" and chose the most interesting idea of a marriage proposal.

A young man from Moscow has become a winner. His name and the idea will remain a secret not to ruin the surprise for his dearie. He will receive a diamond ring as a reward to translate the wish into reality. ALROSA plans to follow the developments and shoot a video based on the winner's script with participation of real characters.

The company has reviewed about 100 applications. The most common idea was the proposal during scuba diving: according to scripts, the girlfriend should find a ring in a seashell or on the seabed.

A few more participants want to propose at soccer matches during the 2018 FIFA World Cup, as well as on the plane or in the movie theatre, having bought out all the seats in the hall. The interesting ideas also include a proposal on the shore of Lake Baikal, at the knight's tournament and during the gondola ride through the canals of Venice. One of the participants plans to get a "star from the sky" – a bright diode with a ring attached to it.

"Our expert committee has reviewed many interesting applications that came to our e-mail address from different cities of Russia – from Moscow to Khabarovsk. We were amazed by the number of responses and the variety of sincere ideas full of love and romance. This once again confirms the fact that the tradition of engagement rings continues to be formed in our country and people are capable of beautiful deeds for the sake of their loved ones. After all, the diamond is a true symbol of love and loyalty", Dmitry Komendantov, Deputy Head of the Marketing and Public Relations of ALROSA said.

ALROSA's competition started in December 2017 and is a part of generic marketing campaign aimed at educating consumers and creating a culture and traditions of diamond jewelry consumption.

Smolensk Diamonds, a subsidiary of Kristall Production Corporation, a long-term buyer of ALROSA's rough diamonds, manufactured the ring for the winner of "She said "YES!" contest.

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