Diamonds market news.See Diavik andEkati mines.
Rapaport TradeWire - Friday April 23, 2004
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News: Basel show good with huge turnout and strong buying activity.
U.S. 2003 gold jewelry sales up 2.5% to $16.3 billion. India annual FY
2003/4 polished exports up 21.32% to $8.63 billion; jewelry exports up
68% to $2.54 billion. South Africa 2003 rough production up 18% to
12.87 million carats. Ekati Q1 rough production unchanged at 1.015
million carats; Rio Tinto production down 37% to 4.534 million carats.
DTC reports 2004 diamond advertising spend at $275 million, 37.5%
above target. Christie's NY sells $20 million, with 70% of lots sold
and D flawless 51.27-carat pear-shaped selling for $3.3 million
($64,365/ct). Sotheby's sold $6.6 million with 76% of lots sold.
=== Retail Rap ===
News: Overall U.S. retail chain sales for week ending April 17 up 5.9%
year-to-year, and up 1% from the previous week, according to
International Council of Shopping Center (ICSC) analysts. Johnson
Redbook Research reports average same-store sales for the week up 4.8%
after a 5.4% gain the previous week. The week's performance lagged and
left many retailers off plan or at the low end of planned range. The
slower performance reflected the closing on Easter Sunday as retailers
were up against last year's pre-Easter shopping week, making for a
difficult comparison.
=== Retail Quote ===
"We are encouraged by the leading retailers' increasing inventory
commitment to gold jewelry. Despite higher costs for the raw product,
gold jewelry sales continue their moderate growth as female consumers
choose to express themselves with the warm, stylish and evocative
language of gold."
-Michael Barlerin, regional director, the Americas, World Gold Council
=== World News ===
--- Indian Gem & Jewelry Exports Touch $12 Billion
The Gem & Jewellery Export Promotion Council (GJEPC) announced a 31%
increase in gem and jewelry exports for financial 2003-2004 (ended
March 31). Total gem and jewelry exports were $11.97 billion verses
$9.13 billion the previous financial year. Cut and polished diamond
exports were up 21.32% to $8.63 billion, Jewelry exports up 68%, to
$2.54 billion. Colored gemstone exports down 7%, to $178 million.
Total added value for India was $2 billion.
--- UN Affirms Backing for Kimberley Process
The United Nations this week affirmed its support for a global diamond
certification scheme to break the link between the illegal trade in
diamonds and armed conflict, the UN's Integrated Regional Information
Networks reported from Johannesburg.
At the 58th General Assembly plenary in New York on Wednesday, the UN
called on its member states to comply with the Kimberley Process
Certification Scheme.
The process requires diamond-producing countries to control the
production and transport of rough diamonds from mines to points of
export. Shipments of rough diamonds are to be sealed in
tamper-resistant containers and a Kimberley Process certificate must
be issued for each shipment. The Assembly welcomed the establishment
of a peer-review system, which was seen as key to ensuring the
process's credibility.
A review mission to the Central African Republic had been completed,
South Africa's representative, Dumisani Khumalo, told the Assembly. He
said a proposed review mission to the Republic of Congo would help
clear up discrepancies in diamond export figures there and help
strengthen control systems.
--- MIBA in Tel Aviv to Sell Diamonds
Rapaport Diamond Report met with representatives of the Societe
Miniere de Bakwange (MIBA), the main diamond company of the Democratic
Republic of Congo (DRC), who are in Israel this week to sell
12%(76,000 carats) of the company's March production. Total March
production was around 650,000 carats.
Dan Gertler International (DGI) has the rights to market 88% of MIBA's
monthly production for a set rate of $14 per carat. The MIBA
representatives said they are very satisfied with the way DGI sorts
and evaluates their goods. The remaining 12% is used by MIBA to test
market prices for its goods in different diamond centers around the
world. This will not be a one-off sale, as, according to a MIBA
official: "It takes longer than one month to gauge market prices in a
trading center like Tel Aviv."
MIBA is aware of the rough shortages on the Tel Aviv market, but says
it cannot tie up the 12% in a deal to one source, because using that
12% to sell in various markets is the only way it has to test the
market.
MIBA has invited new joint venture partners to finance feasibility
studies on its concessions to help ramp up production. Once this
happens, extra goods could be made available for purposes other than
testing the market. Competitors vying for the joint venture
opportunity include DGI, De Beers, BHP and Trans Hex. A decision is
expected by the end of April or beginning of May, 2004. MIBA hopes to
boost diamond production to 8.5 million carats in 2005, from 6.7
million in 2003.
--- Diamonds Fare Well at NY Magnificent Jewelry Auctions
The spring jewelry auction season kicked off in New York at Christie's
on April 19, with solid results. Diamond sales were brisk with
competitive bidding; many of the diamonds that went on the block sold
on the high end of their estimates or well over. Christie's jewelry
specialists attribute the development to the current shortage of
larger, high-quality goods. Contrary to the recent trend of the past
couple of years, dealers were bidding more actively and scooping up
diamonds believing that prices will increase in the next few months.
The sale garnered $20.35 million against a presale estimate of $17 to
$22 million. The top lot of the sale was an unmounted pear-shaped,
51.27-carat, flawless diamond, which sold for $3,367,500. A fancy
vivid blue, rectangular shaped, SI1 clarity diamond took the second
spot, selling for $1,463,500.
Pretty, signed name jewelry was the star at the Sotheby's New York
Magnificent Jewels auction held April 21. The sale of lot #334
garnered $6,652,940 against a $9.2 million to $9.5 million presale
estimate, with 75 percent sold by lot. The top lot was a rectangular
cut, VS2, 10.28-carat natural color fancy vivid yellow diamond ring.
Diamonds again did well with competitive bidding for the stones in
easy-to-wear sizes that were well priced. The merchandise was heavily
slanted towards period pieces, which also did well.
--- Fancy Colors Move Well at Baswelworld 2004
Exhibitors at Baselworld 2004, which came to a close today, report
increased buying activity with diamantaires expressing an optimistic
outlook for solid turnover throughout the year. Both show organizers
and exhibitors were quick to point out that although last year's show
was crippled by global uncertainty caused by the Iraq war and the
outbreak of Severe Acute Respiratory Syndrome (SARS), this year's show
was an overall success.
Demand for fancy colored stones was very strong, while high-end
diamond jewelry moved nicely. Continuing the upward trend of the last
eighteen months, there was a solid demand for branded items, while
medium-to-low price points suffered.
Exhibitors also report a decrease in U.S. visitors due to the exchange
rate and the closeness of the upcoming JCK Las Vegas Show in the
beginning of June.
--- Strong Push in Diamond Industry Advertising
Incremental trade quality advertising spend is at $275 million,
according to Jonathan Kendall, Diamond Trading Company's (DTC)
international and trade marketing group director. Speaking at a
seminar hosted by the DTC on April 19, 2004 at the 2004 Baselworld
Watch and Jewelry Fair, Kendall told the audience that this level of
advertising spend is well in excess of the DTC's 2004 target of $200
million. During his overview of the positive impact the DTC's Supplier
of Choice (SOC) program is having on the diamond industry, Kendall
claimed that over 33% of the DTC's goods are now in what he termed
"efficient distribution channels that are driving demand." Commenting
on the state of the diamond industry, Kendall stated "It is an
exciting time, as there are huge opportunities for us as an industry
to work together more effectively to ensure greater success."
Other presenters at the seminar which focused on improving marketing
initiatives within the diamond industry included Dilip Mehta, chief
executive officer of Rosy Blue; Michael Wainwright, managing director
of Boodle & Dunthorne; Dominique Assenat of Peclers as well as Dominic
Brand and Jonathon Pudney, who are both marketing directors at the
DTC.
--- Kristall Introduces New Diamond Grading Device
Kristall Smolensk, Russia's largest diamond manufacturer, has
presented the industry with a revolutionary device for measuring a
polished diamond's 'appeal coefficient'. The head of the project,
Anatoly Bocharov, Kristall's deputy director, technology, believes
that the device may cause a revolution in the diamond grading system.
The device was demonstrated by Victor Baranov, director of the
Laboratory of Scientific-Research Institute of Experimental Physics of
the Russian Nuclear Center.
The coefficient - named 'charm'- represents "an integrated,
generalized characteristic of a subjective perception of a diamond."
Charm is determined by measuring the known constituents of a diamond's
brilliance - intensity, dispersion, sparkle, etc. The value of the
coefficient is also influenced by standard characteristics of a stone
-- color, clarity, cut and carat weight, its geometric parameters, and
external factors such as light and interior. The value of the charm
coefficient is measured by mathematically processing a large number of
the diamond's images captured from different bow and turn angles.
--- Bodies of 29 Diamond Miners Found in Amazon
The bodies of 29 diamond miners allegedly killed by Indians in an
Amazon jungle reserve have been found, the Sydney Morning Herald
reported from Brasilia on April 21. Police said another 35 miners are
still missing in one of the worst such mass killings in South
America's richest diamond region.
Some 300 police from Espigao d'Oeste, northwest of Rio de Janeiro,
flew into the jungle on April 19 to recover 26 bodies of miners, who
are believed to have been killed on April 7 in a confrontation with
Cinta Larga Indians. Three bodies had been found last week.
The confrontation was the third of its kind in recent years. Entry to
and mining on Indian reserves without authorization are illegal in
Brazil, but hundreds of miners have converged on the reserve because
of speculation about the prospect of diamond discoveries. Some 1,000
Cinta Larga live on the Roosevelt reserve.
Mercio Pereira Gomes, head of the Government's Funai agency, which
oversees Indian reserves, said the Indians "were defending their
territory."
--- NGO Blames Brazil's President for Clashes
After an explosion of violence this week between Brazil's Cinta Larga
Indian tribe and diamond miners, hundreds of indigenous
representatives are gathering in the capital, Brasilia, to protest
government policies. A mass lobby of Congress is planned for April 19,
2004 the annual 'Day of the Indian.'
The Cinta Larga tribe claimed that the miners had illegally invaded
their reserve. Clashes have left several miners dead. In retaliation,
on April 10, 2004, a tribesman was stoned and kicked by miners in the
mining town of Espigão do Oeste and saved only by police intervention.
Young Cinta Larga girls have reportedly been forced into prostitution
by miners and many Indians have been assaulted and threatened since
the mine was illegally opened in 2001.
In a press release on April 18, 2004, nongovernmental organization
(NGO) Survival International wrote that despite clear commitments in
his election manifesto to demarcate Indian lands and to defend their
rights, Brazilian President Lula da Silva "has failed to tackle the
pressing problems which have led to an explosion of violent conflicts
throughout the country."
It continued that in the northern Amazon the government has
continually delayed recognition of the Raposa-Serra do Sol territory
-- home to over 12,000 Indians. Encouraged by local politicians,
colonists and ranchers have invaded the area. At least 12 Makuxi
Indians have been murdered by ranchers during the past 15 years. The
situation is extremely tense, because the government has hinted it may
reduce the size of the reserve to hand Indian land to outsiders.
In the southern state of Mato Grosso do Sul, the Guarani are in a
desperate fight to regain their land. The land situation is so acute
that some communities live by the side of the road with no land or
hope for the future. Malnutrition is common and Guarani children as
young as 9 have committed suicide.
--- China Leads in Platinum Consumption for Third Year
China consumed $2 billion of platinum in 2003, making it the world's
largest user of the precious metal for the third consecutive year, the
China Gem Association said.
The group's report was published in the People's Daily in Beijing.
Jewelry sales and production in China have boomed, responding to a
developing economy and a higher standard of living, the group said.
Annual jewelry sales reached almost $9.7 billion in 2001 from $24
million in the early 1980s. In 2010, annual domestic jewelry sales
will reach $21.8 billion, with export sales totaling $5 billion, the
group estimated.
Yearly domestic sales of diamonds and pearls have reached almost $1.1
billion and $726 million respectively, the association reported.
--- Scientist Reveals Signs of Treated and Synthetic Diamonds
A senior research scientist at the Antwerp Diamond High Council (HRD)
has revealed sets of telltale signs which would indicate that a
diamond is synthetic or is a natural stone that has been color treated
by a High Pressure-High Temperature (HPHT) method. Dr. Katrien De
Corte of HRD Research, Antwerp, spoke at a special symposium April 18,
2004, at the Baselworld Show in Switzerland.
The symposium, attended by about 100 participants and entitled "In
Defiance of Nature," focused specifically on synthetic and HPHT
treated diamonds, which are being seen with increasing frequency in
the diamond marketplace. De Corte described the various synthesizing
and treatment procedures involved and spoke about methods of
identification that are being developed by HRD Research.
The telltale signs relate to color, proportions, strain patterns,
typical inclusions and sensitivity to ultraviolet and infrared light.
The indicators, De Corte stressed, are signals that a diamond may be
synthetic or HPHT treated, but not definitive proof. For that to be
determined, she said, such diamonds should be submitted for
examination to a qualified laboratory.
=== Retail News ===
--- Mother's Day Spending to Rise 1.3 Percent, Retail Group Says
Consumers plan to spend an average $98.64 on Mother's Day, up 1.3
percent from $97.37 in 2003, according to a report by BIGresearch for
the National Retail Federation in Washington. The survey indicates
that Mother's Day spending will total $10.43 billion.
Consumers buying jewelry will spend the most, an average of $62.40.
Clothing buyers plan to spend $31.89 for such purchases, and those
taking their mothers to lunch plan to spend $40.54.
Many consumers "see this as an important day to honor the women in
their lives," said Tracy Mullin, president and CEO of the National
Retail Federation. "With all the sacrifices mom has made over the
years, Mother's Day is an opportunity to give something back."
"In addition to their own mother, many consumers are also buying gifts
for their daughters, wives, and grandmothers," said Phil Rist, vice
president of strategy for BIGresearch. "When you're honoring several
mothers on one holiday, a $100 price tag is not hard to achieve."
--- U.S. 2003 Gold Jewelry Sales Up 2.5%
Gold jewelry sales in the U.S. increased by 2.5% to above $16.3
billion in 2003, according to a survey undertaken by NOP World,
sponsored by the World Gold Council (WGC). This increase marks the
thirteenth consecutive annual increase in U.S. gold jewelry sales. The
survey also shows a rise of 3.9% in gold jewelry units sold, while the
average price per unit declined by 1.3% to $76.
The increase in gold jewelry sales was spurred by bracelet sales,
which increased by 8.2% and 6.8% in terms of value and quantity
respectively, as well as earring sales, which increased by 2.6% and
6.6% by value and quantity, respectively. In terms of channel
distribution, mass merchants saw the largest percentage increase of
3.6% in dollar sales to $3.7 billion, while jewelry stores, the
largest distribution channel, reported a 2.3% increase to $8.1
billion.
--- Aber Appoints New Harry Winston Inc. CEO
Aber Diamond Corporation and Harry Winston, Inc., have announced the
appointment of Thomas O'Neill as chief executive officer of Harry
Winston, Inc., and president of Aber. This appointment closely follows
Aber's purchase of a 51% controlling interest in the jeweler on April
2, 2004.
Commenting on the appointment, Ronald Winston, chairman of Harry
Winston, Inc., stated, "I am pleased and excited that Mr. O'Neill will
be leading the management team."
O'Neill's experience in the luxury retail industry spans 20 years. His
career commenced at Tiffany & Co., where he last served as executive
vice president with responsibility for international markets. In 1997,
Mr. O'Neill left Tiffany to become president of Louis Vuitton,
Americas, as well as chief executive officer of the fashion house Marc
Jacobs and ultimately the president and chief executive officer of the
LVMH Fashion Group in the Americas. In 2000, he transferred to Paris
as president and chief executive officer of the newly created LVMH
Jewelry Division. He joined Burberry in 2001. Commenting on his own
appointment, O'Neill said that he was "looking forward to continuing
the Harry Winston legacy while revitalizing the brand and contributing
to the ongoing success of Aber."
--- Legal Proceedings Still Haunt Whitehall
Whitehall Jewellers has filed its annual report on Form 10-K for the
fiscal year ended January 31, 2004, but is still embroiled in ongoing
legal proceedings. On March 23, 2004, Whitehall announced that it had
accrued a litigation reserve of $6 million for the consolidated
Capital Factors actions and the U.S. Attorney and Securities and
Exchange Commission investigations. Since that time, the company has
engaged in further settlement negotiations and accrued an additional
reserve of $2.6 million for the period. In a statement Whitehall said
it cannot provide any assurance "that it will be able to reach a
settlement with any of the parties to the consolidated Capital Factors
actions or that any settlement or settlements will be for the amount
recorded as a reserve."
--- Retailers Welcome New Overtime Regulations
The National Retail Federation (NRF), Washington, D.C., called the
U.S. Department of Labor's (DOL) release of new federal white collar
overtime regulations "a victory," saying the long-sought update would
help put an end to costly litigation from disputed overtime pay
decisions. The NRF counts among its members Tiffany & Co. and
Fortunoff Fine Jewelry, both based in New York.
The regulations address which employees qualify for time-and-a-half
pay beyond 40 hours per week. There are new income tests and job duty
tests to determine eligibility. The labor regulation on nonmanual
labor overtime had not been changed in more than 50 years.
The new DOL rules update the Fair Labor Standards Act of 1933 and go
into effect in 120 days. Since their publication in draft form in
March, 2003, the new rules have drawn controversy, being opposed by
many labor unions and setting off a political battle. Craig Shearman,
a spokesman for the NRF, said labor contracts supersede the federal
rule, and he applauded the raising of the pay threshold for nonunion
employees from $8,060 a year under the old regulation to $23,660 when
the new regulation takes effect. Below that level, workers are
guaranteed overtime pay. Under the current regulations, many assistant
store managers with salaries of about $20,000 do not qualify for
overtime pay, even when they work 60-hour weeks.
--- Blue Nile Sets Terms of IPO
Underwriters for Blue Nile, a leading online retailer of high quality
diamonds and fine jewelry, set the terms of the company's pending
initial public offering (IPO) at 3.74 million common shares, with a
price of $17.50 to $19.50 a share.
The Seattle, Washington,-based company said on April 19, 2004, that it
is selling two million shares, while shareholders are selling the
rest. On March 11, 2004, Blue Nile filed an IPO to sell up to $75
million in common stock, but did not disclose details.
In an amended Form S-1 form filed yesterday with the Securities and
Exchange Commission, the company said it expects the net proceeds from
the offering will be $32.4 million. According to the filing, there
will be 17.3 million common shares outstanding after the offering. The
company intends to list its common stock on the Nasdaq National Market
under the symbol NILE.
=== Stock Watch ===
Thurs. Thurs. Change($) Change(%)
Apr. 15 Apr. 22
Finlay(FNLY) $17.34 $18.66 $1.32 7.61%
Friedman's(FRDM) $5.95 $5.84 ($0.11) -1.85%
JC Penney(JCP) $34.55 $36.05 $1.50 4.34%
Neiman(NMGA) $51.38 $51.45 $0.07 0.14%
Nordstrom(JWN) $37.70 $38.32 $0.62 1.64%
Signet(SIGY) $62.21 $62.72 $0.51 0.82%
Tiffany(TIF) $38.60 $41.52 $2.92 7.56%
Wal-Mart(WMT) $57.79 $58.60 $0.81 1.40%
Whitehall(JWL) $9.05 $9.30 $0.25 2.76%
Zale(ZLC) $58.29 $59.68 $1.39 2.38%
Dow Jones Avg. 10,397.46 10,461.20 63.74 0.61%
=== Africa News ===
--- SA Achieves Record Diamond Production in 2003
Preliminary statistics released by South Africa's diamond board
indicate that South Africa's diamond production surged 18% to a record
level of over 12.87 million carats in 2003, compared to the 10.92
million carats produced in 2002. The higher production is attributed
to increases at De Beers Venetia, Kimberley and Namaqualand mines.
South Africa is the fifth-largest diamond producer in terms of volume
-- carats -- after Australia, Botswana, Russia and the Democratic
Republic of Congo (DRC). However, in terms of value -- estimated at
$950 million -- its ranking has dropped from third to fourth behind
Botswana, Russia and Canada, following the latter's doubling of
production in 2003.
These figures exclude the production of the majority of diggers -- the
small, privately owned alluvial diamond producers operating concession
areas in the Northern Cape, North West and Free State provinces who,
according to the diamond board, produce between 130,000 and 300,000
carats per year.
According to Minerals Bureau statistics, a total of 75
mining-licensees produced diamonds in 2003, of which, 16 mined
kimberlites, 42 exploited alluvial deposits and 17 recovered diamonds
from a marine environment. Kimberlite production contributed about
11.64 million carats -- 90.4% -- to total output, notably up from the
9.86 million carats produced in 2002, as a result of higher production
at De Beers Venetia and Kimberley mines. Alluvial diamonds contributed
about 1.11 million carats, a modest increase compared with 2002, while
marine diamond production, which was dominated by the Trans Hex Group
and Alexkor, rose to around 117,000 carats from 75,000 carats in 2002.
Mines owned by De Beers accounted for 92.5% or 11.9 million carats of
South Africa's recorded production, compared with 10.4 million carats
in 2002.
--- Thousands of Congolese Expelled from Angola
Tens of thousands of Congolese nationals expelled from Angola are in
urgent need of humanitarian aid in two southwest provinces of the
Democratic Republic of Congo, the United Nations Office for the
Coordination of Humanitarian Affairs (OCHA) said in a report of April
17, 2004, posted to the web today.
Many of the Congolese citizens expelled from Angola since December
2003 had been living and working illegally in the country as diamond
miners, OCHA said. The agency said returnees in the provinces of
Bandundu and Kasai Occidental need food, water, health care and
nonfood items. This situation was clarified by an OCHA-led interagency
needs assessment mission on April 17, 2004, to those two provinces.
It is estimated that between 80,000 and 100,000 Congolese have been or
will soon be forcibly expelled. Since April 2, at least 40,000
Congolese have been registered in Bandundu and Kasai Occidental after
crossing the Tungila River from Angola. This amounts to at least 2,500
people daily, although the count may be higher, because many of these
people are not passing through registration points. Humanitarian
relief is being coordinated through OCHA.
--- Congo Laments Angola's Expulsion of Congolese
Angola's expulsion of tens of thousands of Congolese is causing
mayhem, the Democratic Republic of Congo's interior minister said,
according to South Africa's Mail & Guardian.
After speaking with Angolan Foreign Minister Joao Miranda, the DRC's
interior minister, Theophile Mbemba Mfundu, said his country "does not
have the necessary logistics to accommodate these people repatriated
from Angola." About 40,000 returnees have been registered in the DRC
this month, the United Nations has said.
Angolan authorities have rounded up more than 60 000 foreigners, most
of them from the DRC, over the past four months to try to stop illegal
diamond mining and trading.
The DRC is still suffering the effects of a five-year war. That
conflict, which involved as many as six other African nations,
including Angola, killed about 2.5 million people in combat or through
disease and hunger. The war, which crippled the Central African
country's economy and infrastructure and gravely harmed its diamond
industry, ended in April 2003 with a peace accord.
=== Mining News ===
--- Rio Tinto Quarterly Production Down 37%
Rio Tinto's diamond production for the quarter ended March 31, 2004
reached 4.534 million carats representing a decline of 37% on the
previous corresponding quarter in 2003 and 49% on the preceding
quarter ended December 31, 2003. The decline in output is a result
difficult mining conditions at the Australian Argyle diamond mine
which comprises 80% of Rio Tinto's total diamond production.
Despite the overall decline in diamond production, output from Rio
Tinto's 60% owned Diavik diamond mine in Canada's Northwest
Territories reached 922,000 carats in the quarter ended March 31,
2004, an increase of 40% on the corresponding quarter in 2003 and 274%
above the preceding quarter ended December 31, 2003. Amongst other
factors, the increase in output was attributed to the processing plant
operating ahead of design capacity.
Rio Tinto also announced that it has commenced construction of a small
scale diamond mine and plant in Murowa in Southern Zimbabwe at a cost
of $11 million. The mine comprises 3 kimberlite pipes, 16.5 million
tons of ore and a grade of 0.9 carats per ton. The company expects
production from Murowa to commence during the second half of 2004 and
diamonds recovered will be marketed through Rio Tinto Diamonds in
Antwerp.
--- BHP Billiton Reports Flat Quarterly Diamond Production
BHP Billiton's diamond production from its Ekati diamond mine reached
1.015 million carats for the quarter ended March 31, 2004 in line with
the previous corresponding quarter in 2003, however production was
down 40% on the preceding quarter ended December 31, 2004. The company
attributed the decrease in production to the completion of processing
from a pocket of high grade material from the Koala pit in December
2003. For the nine months ended March 31, 2004, diamond production was
up 17% to 1.422 million carats compared to the previous corresponding
period.
The Ekati diamond mine located in Canada's Northwest Territories is
BHP Billiton's only diamond mine and produces approximately four per
cent of current world diamond production by weight and six per cent by
value.
--- Churchill Diamond Exploration Starts
Shear Minerals Ltd., Stornoway Diamond Corp. and BHP Billiton
announced that the 2004 field program on the Churchill Diamond Project
has commenced with a detailed aerial geophysical survey. The site
covers 8.5 million acres on the west coast of Hudson Bay in Canada.
The survey includes the collection of more than 33,000 line-km of
detailed magnetic and electromagnetic data. The survey, which will be
flown in two stages, is being conducted by Fugro Airborne Surveys
using its helicopter-borne Resolve system. The survey will focus on
the core mineral claims where the most favorable mineral chemistry has
been recovered. Last year, 18 kimberlites were found, 10 of which had
diamonds in them, and there are currently more than 250 high priority
targets on the vast property, said a spokesman for Shear Minerals,
Norman Eaton.
Shear Minerals Ltd. is based in Edmonton, Alberta, and Stornoway is
headquartered in Vancouver, British Columbia. Canadian sites currently
have the greatest financial investment in exploration, and Canada
ranks third in diamond production, after Botswana and Russia.
--- SouthernEra 2003 Diamond Sale Prices Rose 15%
SouthernEra Resources Ltd., a Toronto-based platinum and diamonds
producer, reported on April 20 that 2003 mining revenue more than
tripled while average selling prices for diamonds rose 15%.
SouthernEra reported that its full-year net loss grew to $12.3
million, or 20 cents a share, from $9 million, or 19 cents, in 2002.
The company attributed the loss largely to the strength of South
Africa's rand against all major currencies.
The platinum-metals group began commercial production in
fourth-quarter 2003 at the Messina Phase 1 mine. Revenue from that
operation and from diamond sales derived from SouthernEra's holding in
the Klipspringer joint venture totaled $12 million. In the
corresponding 2002 period, revenue from diamond sales totaled $3.2
million.
The company's portion of diamonds recovered in 2003 shrank 17% to
37,885 carats from 45,566 in 2002. SouthernEra's average selling price
for the diamonds advanced to $85 a carat from $74. Direct mining costs
quadrupled to $21 million from $5 million because Messina's
fourth-quarter operating costs were included in the latest period.
The company said earlier this month that it was considering a plan to
separate the platinum and diamond operations into two public
companies.
--- SearchGold Recovers 3 Large Diamonds at Mandala
SearchGold Resources Inc., a Montreal-based producer of diamonds and
gold, said on April 20 that it recovered three unusually large
diamonds within the Mandala III North bulk sample of its Mandala River
diamond project.
The three diamonds, measured at 21.47 carats, 10.72 carats, and 7.26
carats, confirm the presence of large diamonds in Mandala's
diamondiferous gravels, SearchGold said. The Mandala Alluvial Diamond
Project is located in Guinea, West Africa.
Placer Analysis Ltd. sampled the Mandala and N'Keleyani Rivers Flats
and measured an indicated resource of 615,000 carats of diamonds
within the Mandala River exploitation permit area owned 80.75% by
SearchGold through its 95% -owned Guinean subsidiary, Ressources
Mandala Guinee SARL.
The company also said it's planning a third diamond delivery to
Antwerp at the end of April, "and according to the interim results,
this shipment will be a record one."
--- Anglo American to Boost Investment in China
Anglo American plans to increase its investment in China, to explore
for resources including gold and diamonds, Chief Executive Tony Trahar
said.
Trahar spoke at a ceremony on April 21, at which Anglo American
donated samples of gold, platinum and diamonds to the new Geological
Museum of China. The ceremony was attended by China's minister of land
and resources, Sun Wensheng.
Anglo American could help China find more minerals with its expertise
and advanced technology and equipment, he said. Trahar also suggested
that the company could help China improve mining safety.
Anglo American, with annual sales of $21 billion, has interests in
gold, platinum, diamonds, coal, base and ferrous metals, industrial
minerals, and paper and packaging. Since the mid-1980s, Anglo American
has invested in a number of mining and industrial projects in China.
The company holds 45% of De Beers.
=== Indian Diamond Market Update ===
--- Market Slower Than Usual ---
The polished market has settled back into routine but at a much lower
level than usual for this time of year. No price variations are
expected for some time, as not much rough is purchased around this
time and many firms also will be closing for the summer vacation
shortly.
--- POLISHED:
-1 point: Very good demand: $100-$200 whites.
Good demand: $120-$180 white natts.
Fair demand: $200-$250 whites.
-2 point: Very good demand: $150-$250 whites.
Good demand: $260-$320 whites.
Fair demand: $325-$360 whites; $125-$175 white natts.
2-7 point: Good demand: $200-$360 whites.
Fair demand: $200-$275 +8 white natts.
8-18 point: Very good demand: $400-$525 whites.
Good demand: $250-$375 whites.
Fair demand: $150-$225 whites; $400-$450 OW LC;
$250-$325 TTLC, $200-$250 OW TTLB & TTLC.; $425-$475 OW
TTLC; +14-point $525-$575 OW TTLC; $200-$350 white natts.
20 points: Very good demand: $300-$350 whites.
Good demand: $150-$200 whites.
Fair demand: $200-$300 whites; $600-$650 OW TTLC.
25 points: Very good demand: $175-$225 whites.
Fair demand: $250-$400 whites.
33 points: Good demand: $425-$550 whites; $225-$300 TTLB.
Fair demand: $375-$425 whites.
50 points: Good demand: $800-$1,000 whites; $400-$700 whites.
Fair demand: $200-$400 whites; $450-$600 OW TTLC.
75 points: Good demand: $700-$1,200 whites.
1 carat+: Very good demand: $1,000-$4,000 whites; $1,000-$5,000 +2 ct
I+ color.
Good demand: $800-$1,000 whites; $500-$800 whites & white
natts.
Fair demand: $200-$500 whites.
Princess: -3 point: Good demand: $150-$250 whites.
+3 point: Fair demand: $200-$250 whites.
+9-18 point: Good demand: $225-$300 whites; +14 point: $275 -
$325 whites.
20 points: Fair demand: $300-$335 whites.
33 point: Fair demand: $500-$600 whites.
50 point: Good demand: $600-$1,000 whites.
1 carat+: Good demand: $1,000-$1,200 whites.
Fair Demand: $1,600-$2,200 whites.
Marquise: -6 point: Good demand: $250-$310 whites.
Fair demand: $400-$450 whites.
+7-18 point: Good demand: $175-$250 whites; +14 points $250-
$300 whites.
Fair demand: $500-$600 whites.
20 point: Fair demand: $275-$325 whites.
25 point: Fair demand: $325-$375 whites; $425-$450 whites.
33 point: Good demand: $400-$475 whites.
50 point: Good demand: $550-$650 whites; $850-$1000 whites.
1 carat+: Good demand: $800-$1,200 whites.
Fair demand: $1,500-$1,800 whites.
Tapers & Baguettes: Good demand: $225-$300 2mm-2.5mm whites; $300-$350
2.5mm-3mm whites; $150-$225 +2mm-3mm whites.
Fair Demand: $575- $650 +5mm whites.
--- ROUGH:
1-7 point: Fair demand: $25-$40 & $57-$101 sawn princess; $45-$98
rounds; $35-$79 crystals.
Fair movement: $11-$26 & $45-$75 makeables; $18-$34 (2-3
pointers) rounds; $75-$105 sawables.
8-20 point: Slow demand: $40-$55 & $79-$120 rounds; $20-$36 & $65-$108
crystals; $25-$53 & $75-$114 sawn princess; $35-$78
clivage.
Slow movement: $25-$48 & $73-$110 makeables; $35-$60 flats;
$30-$51 baguettes.
21-49 point: Fair demand: $55-$125 rounds; $65-$130 sawn princess; $78-
$115 crystals.
Slow movement: $150-$220 rounds; $58-$97 clivage; $45-$79
flats; $38-$78 baguettes; $75-$131 makeables.
0.5-1 carat: Fair demand: $63-$89 & $108-$160 sawn princess; $78-$135
crystals; $185-$225 rounds.
Slow movement: $45-$85 & $105-$175 makeables; $68-$105
flats; $47-$85 baguettes.
1-3 carat: Good demand: $115-$200 clivage; $120-$173 & $239-$415
rounds; $909-$1,254 makeables & rounds +3-carats.
Fair movement: $75-$120 flats; $91-$128 & $187-$283 OW;
$150-$225 sawables.
========================================
Are you interested in trading
Rough or Polished diamonds?
Contact the Rapaport Trading Department
Trade@Diamonds.net
Rapaport Offices in New York, Las Vegas
Antwerp, Vicenza, Ramat Gan, Mumbai and
Hong Kong.
=========================================
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