Star Diamond Corp T.DIAM

Diamonds: Strong world market.

[Boscoboy101]

Rapaport TradeWire – Friday, June 4, 2004 -------------------------------------- News: Jewelry industry converging on Vegas with high expectations for good show. Manufacturers expecting strong buying activity as retailers stock up for holiday season. Retailers starting to realize diamond prices are increasing. Three stone rings hot, right hand rings not. HRD to open U.S. diamond grading laboratory. Israel May polished exports up 19.6% to $662.6 million; rough imports up 38.9% to $409.9 million. Whitehall Q1 sales up 5.6% to $73 million. Aber Q1 sales reached $52.1 million; outlook on Diavik operations remains positive. Fancies: Overall fancy market looking very good as retail sales improve and shortages of suitable rough push up polished prices. Scarcity of larger well made fancies driving dealer demand for select goods. Square cuts hot as usual. Pears and hearts moving nicely especially in carat and larger, G+, VS+. Ovals improving with good demand for 0.30-0.60, G+ VS-SI. Marquises making strong comeback with extreme shortages of well made stones due to unavailability of rough. === SPECIAL VEGAS NOTICE =========================================== === RAPAPORT BREAKFAST - ONE-DAY FREE EDUCATIONAL PROGRAM === Monday, June 7, 2004, JCK Las Vegas Show - Rooms 105-106 8:00-10:00 AM "State of the Diamond Industry" - Martin Rapaport 10:30-11:30 AM "Research Trends to Build Your Business" - Ken Gassman 2:00-4:00 PM "Understanding the USA PATRIOT Act"- Cecilia Gardner, Esq 4:30-5:30 PM "The State of Training & Education" - Jay Lell Seminars are provided free of charge with priority to Rapaport Members. We encourage early registration as the seminars often sell out. Please RSVP to [e-mail] REMINDER: Rapaport International Diamond Conference - Oct. 12, 2004 Waldorf Astoria Main Ballroom - Reserve Now! [e-mail] ==================================================================== === Retail Quote === “Differentiate what you are selling in such a powerful way that buying anywhere else would strike your prospect as dumb.” Mark P. Moeller, president of R.F. Moeller Jeweler, St. Paul, Minnesota, at the JCK Show 2004. === World News === --- Israel's Polished Diamond Exports Up 20% in May Israel's May net polished diamond exports rose 19.6% to $662.6 million. During the first five months of the year net polished exports grew 20.6% to $2.810 billion. Rough imports rose 38.9% to $409.9 million. Since the beginning of the year rough imports rose 47.1% to $2.028 billion. Rough exports rose 28.6% to $283.0 million. For the first five months rough exports rose 48.1% to $1.248 billion. Polished imports rose 2.5% to $280.6 million. Since the beginning of the year they rose 4.8% to $1.296 billion. Israel’s major polished export markets were: the U.S. 70%, Hong Kong 12% and Belgium 7%. Since the beginning of the year exports to the U.S. rose 15%, to Hong Kong 49%, Switzerland 12%, Belgium 15% and England 46%. --- Aber Q1 Net Falls; Diavik “Continues to Perform Well” Aber Diamond Corp. reported that first-quarter net income fell 46% to $2.8 million because of income-tax expense and costs related to its acquisition of a controlling interest in the fine jewelry and watch retailer Harry Winston Inc. For the first quarter ended April 30, Aber reported sales of $52.3 million, of which $42.2 million came from mining and $10.1 million from Harry Winston. Year-earlier sales of $4.1 million were reported before the August 2003 startup of commercial production from the Diavik diamond mine and the April 2004 acquisition of 51% of Harry Winston. “Operations from the Diavik Mine continued to perform well during the first quarter, with the process plant working comfortably ahead of design capacity rates of 1.5 million tons” a year, the Toronto-based company said in a statement. Aber’s 40 percent share of Diavik resulted in the company taking in 615,000 carats of diamonds in the quarter ended March 31 against 440,000 carats in the quarter to December 31, 2003. The company reduced its cost of production to $24 a carat from $34 a carat. “Two rough diamond sales are scheduled for the second quarter,” Aber said. “Given the expected shortage of rough available in the market during the second half of the year, the outlook for this period, and the remainder of the year, remains positive.” Harry Winston plans to open its seventh and eight retail salons in the next six months, one in Las Vegas and the other in Taipei, Taiwan. The Taipei outlet will be the first in Asia beyond Winston’s locations in Japan. “The outlook for the remainder of the year is positive” but depends highly on economic conditions, Aber said. --- Doris Duke Jewels Set Auction Records at Christie’s Jewelry from the collection of socialite heiress Doris Duke was 100 percent sold at Christie’s New York during a glamorous evening auction. The sale garnered $11,964,176 doubling the high presale estimate and making it the highest sale total ever for any private jewelry collection sold at auction in the United States. It was also the third highest total for a single-owner sale held globally during the past ten years. Bidding for the 111 lots, which took place over three hours was intensely competitive. Four lots sold for over $1 million. The top lot of the sale was for a Belle Époque diamond and pearl necklace by Cartier, which sold for $2,359,500 — establishing a global record auction price for a Cartier diamond necklace. A double strand emerald bead necklace also set a world auction price record when it sold for $1,127,500. A 19.72-carat rectangular cut DVS1 diamond from Tiffany & Co. was the second highest lot of the evening selling for $1,261,900. Buyers were predominantly from the U.S. with European and Asian buyers actively purchasing as well. Most of the buying came from privates although the trade did manage to win some lots. Proceeds from the sale benefit the Doris Duke Charitable Foundation. --- JCK Luxury Show Update Exhibitors at the JCK Luxury show June 2 through 4 report strong activity on day three after a relatively quiet first two days. Expectations are high for the final day. During the first two days, some exhibitors reported that buyers did not turn up for appointments. However, exhibitors with booths near the entrance saw somewhat stronger buying activity than those who are harder to find. Exhibitors expect more success at the JCK show starting June 6, as buyers who have been attending the Couture Jewellery show in Phoenix make their way to Las Vegas. The Phoenix show will compete directly with the JCK show when it moves to Las Vegas in 2005. Several trends are apparent at the Luxury show: Chandelier earrings are being replaced by drop earrings in simple designs. Circles and chains, color stones with diamond accents, and clean-lined jewelry with movement are prominent. Three-stone jewelry is hot; right-hand rings are not. Princesses are strong across the board. In a speech to retailers and exhibitors on June 2, Paula Peterson of Crown Luxury Consulting identified key jewelry trends: Multiple strands in varying lengths are hot, as are line earrings, teardrops, drop diamond pendants, pearls, burnished gold, diamond cuffs and brooches. She added that pink stones are being replaced by blue stones. --- Frederick Goldman, Firestone Group in Jewelry Venture Frederick Goldman Inc. and Firestone Group formed a joint venture to acquire diamonds and to produce and market fine jewelry, the companies said. The New York-based venture combines Goldman’s marketing, merchandising and distribution abilities with Firestone’s interests in acquiring loose diamonds and manufacturing jewelry, the companies said. Firestone has access to rough through its alliance with Star Group of Antwerp. The new venture offers major jewelry retailers a vertical solution, the companies said, adding that its products would include bridal and fashion diamond jewelry. Frederick Goldman develops bridal and fine jewelry brands including ArtCarved, Diana Classic and The Keepsake jewelry line offered by Wal*Mart. --- China Lifts Restrictions on Retail and Distribution A new law in China opened the country’s retail and distribution sectors to foreign investors, presaging faster growth in an already rapidly expanding area of the economy, The Wall Street Journal reported. Beginning in December, foreign retailers can do business without Chinese partners and set up stores anywhere in the country. The law removes asset and sales requirements that had barred all but the world's largest retail chains from entering China. And it loosens a rule that all store openings needed central government clearance. --- High Prices Slow Tanzanite Sales at GLDA Show Exhibitors at the GLDA show at Las Vegas, report that shortages in tanzanite rough supply have driven prices through the roof, resulting in slow sales despite a strong demand. Rough that cost $300 a gram a year and a half ago is today selling for $700. This has resulted in the price of cut and polished goods rising from around $270 a carat a year and a half ago to as much as much as $400 a carat today. The upward pressure on prices is also still strong. One dealer noted that just a short while ago at the Tucson show, polished tanzanite was selling at $300 a carat. Pink sapphires are extremely hot as they have been for some time. Many dealers stated that they just did not have enough stocks to keep up with demand. Blue sapphires too are in very good demand, with non-heat-treated goods fetching in the region of $3,000 a carat compared to between $500 and $1,500 for heat-treated stones. Other colored stones that have done well at the show include spessartite garnets, large alexandrites and apatite. --- India Clears Star Diamond of Netherlands to Form Venture India’s Foreign Investment Promotion Board cleared the proposal of the Star Diamond group of the Netherlands to set up Firestar Diamond Pvt Ltd., a joint venture with Firestone of India, sources told Sify.com of India. The venture plans to import rough and sell it to Indian manufacturers, traders and exporters. The sources said Firestar also would establish a factory to polish diamonds, outsource production of polished diamonds, export them from India, and sell them to jewelers. The venture will not be allowed to sell at retail. --- Israel's Diamond Controller Named Deputy Head of Ministry Israel Diamond Controller Udi Sheintal was named senior deputy director-general of the Ministry of Industry, Trade and Labor. He continues as diamond controller and director of the ministry’s Diamonds, Precious Stones and Jewelry Administration, posts he has held since 1998. Sheintal has played a key role in creating the Kimberley Process standards and implementing them in Israel. --- Antwerp Diamond Conference to Focus on Synthetic Diamonds The Third Antwerp Diamond Conference, set for November 15 and 16, will focus on how gem-quality synthetic diamonds threaten consumer confidence in natural diamonds. Peter Meeus, managing director of the Antwerp Diamond High Council, host of the conference, says banning trade in synthetics on diamond bourses is ineffective. Instead, he says, the industry must distinguish natural diamonds from synthetics “to educate the public about the uniqueness and wonder of natural diamonds.” Conference topics will include producing and detecting synthetics, marketing natural diamonds alongside synthetics, legal and ethical issues, and policies. === Retail News === --- Whitehall Posts Loss, Names Nicodemus-Volker EVP of Merchandise Whitehall Jewellers reported that its first-quarter net loss widened to $3.7 million from $2.8 million in the year-earlier period. Sales for the quarter ended April 30 climbed 5.6% to $73 million from $69.1 million. Separately, Whitehall named Debbie Nicodemus-Volker, a merchandising executive with more than 25 years of experience in retailing, to the post of executive vice president of merchandise. --- Tiffany to Open 51st and 52nd Japan Stores, in Tokyo and Osaka Tiffany & Co. said it would open its 51st and 52nd Japanese stores, in Tokyo and Osaka. The 693-square-meter (7,450-square-foot) Tokyo store, in the Marunouchi area, is located in the Meiji Yasuda Life Building. The 697-square-meter (7,500-square-foot) Osaka store, in the Nishi-Umeda area, opens in November in the Herbis Plaza Ent. === Stock Watch === Thurs. Thurs. Change($) Change(%) June 3 May 27 Blue Nile (NILE) $39.98 $33.20 $0.78 2.3% Finlay(FNLY) $19.39 $20.00 -$0.61 -3.1% Friedman's(FRDM.PK) $3.45 $2.90 $0.55 19.0% Neiman(NMGA) $52.28 $51.39 $0.89 1.7% Nordstrom(JWN) $40.27 $40.65 -$0.38 -0.9% JC Penney(JCP) $35.88 $35.49 $0.39 1.1% Signet(SIGY) $63.77 $63.45 $0.32 0.5% Tiffany(TIF) $35.91 $35.02 $0.89 2.5% Wal-Mart(WMT) $56.60 $55.97 $0.63 1.1% Whitehall(JWL) $8.00 $8.11 -$0.11 -1.4% Zale(ZLC) $55.26 $54.46 $0.80 1.5% Dow Jones Avg. 10195.91 10205.20 -9.29 -0.1% === Events === --- ICA to Release Part 2 of Gemstone Image Library at JCK ICA GemBureau will release the second part of its three-part digital slide library of gemstones at JCK. The group released Part 1 in February and Part 3 is due in September. ICA GemBureau will make the content available to its members as well as the trade press and general media. The new slide series will be available to the trade press at ICA’s JCK booth. At JCK, the ICA will share exhibition space with CIBJO, the World Jewelry Confederation, in Booth 114 in the Foyer. --- Sarin to Update Diamond Analyzers at JCK Sarin Technologies will launch a number of new computerized diamond analyzers at JCK. Sarin will introduce the latest version of DiaScribe, including a new viewer that enables users to immediately view their diamond inscriptions on screen without a microscope or loupe. Another improved product on display: the Brilliant Eye “S” Series, an on-the-counter platform that enables retailers to show images of a stone in an animated display and quickly create a colorful diamond report. --- GIA to Hold Career Fairs in July and October The Gemological Institute of America has scheduled career fairs for Friday, July 23, at the Jacob Javits Center in New York and Friday, Oct. 15, at the GIA’s Robert Mouawad Campus in Carlsbad, California. === Africa News === --- Kimberley Process Ex-Chairman to Lead Review of DRC Abbey Chikane, immediate past chairman of the Kimberley Process, will lead a review mission to the Democratic Republic of the Congo. The mission will inspect the DRC’s diamond production and trade and will examine whether nation is complying with the process’s worldwide diamond-certification standards. --- South Africa Sees Rise in Jewelry Making Due to Beneficiation South Africa will increase its jewelry manufacturing interests as it moves to boost local mineral beneficiation, Deputy Minister of Minerals and Energy Lulu Xingwana said at a briefing reported by Mining Weekly Online. The deputy minister’s department is seeking to amend the Mining Rights Acts to ensure that precious metals and diamonds are offered locally before being exported. As part of the project, 16 women from rural areas recently traveled to India, where an Indian company, Tata, will teach them jewelry and ceramic manufacturing. These women will return and train other South Africans, Mining Weekly Online reported. === Mining News === --- Waldman of Israel Gets Marketing Rights to Sierra Leone Mine Waldman Diamond Group of Ramat Gan, Israel, secured the rights to market the output of the Magna Egoli mine in Sierra Leone. Waldman recently received the first shipment from the mine, which is located on the Sewa River and produces gem-quality stones. The diamonds in the shipment ranged in value from $225 to $280 per carat, and some of the larger stones weighed about five carats each. --- De Beers Gets Permit, Clearing Way for First Canada Project De Beers received a water license from Canada, clearing the way for the company to start construction at the Snap Lake site in the Northwest Territories. Snap Lake is the first project in Canada for which De Beers has received clearance. --- Lesotho’s Lets’eng Mine Sells $3.3 Million of Diamonds Lets'eng Diamond Mine in northern Lesotho sold $3.3 million of diamonds in Antwerp in May, according to South Africa’s Business Report. Last year, the mine sold $5.6 million of diamonds in the same market. The Lets'eng mine restarted production in April 2003 after being idle since De Beers ceased operations there in 1982. --- Mining Boost in Madhya Pradesh, India, as Major Firms to Survey Diamond mining in Madhya Pradesh is likely to gain momentum with the entry of multinationals, Rediff.com of India reported. ACC Rio Tinto, De Beers, BHP Minerals of Canada, and National Mineral Development Corp. are set to survey and explore diamond mines in the Panna, Chhattarpur, Tikamgarh, Sagar, Angor and Majhgawan areas of the state. --- True North Begins Regal Ridge, Yukon, Emerald Exploration True North Gems said its 2004 exploration program, an investment of $1.6 million (C$2.2 million), is underway at its Regal Ridge emerald property in the Finalyson Lake District of Canada’s Yukon Territory. Gem processing will begin this month, after the pilot processing plant has been modified. Processing will begin with 1,500 tons of mineralized material stockpiled from 2003. --- Diamonds North Acquires 900,000 Acres in Northern Manitoba Diamonds North Resources acquired 900,000 acres in northern Manitoba, Canada. The exploration licenses cover an area of the Superior Craton with diamond potential. === INDIAN DIAMOND MARKET UPDATE === --- BUYING FOR VEGAS TAPERS OFF --- Polished buying for the JCK Las Vegas show has tapered off and the market is waiting to see how the show itself turns out. A good show is widely expected to stimulate demand for polished. In the rough market, demand is good as manufacturers seek stocks to keep their factories running. But the high prices have kept demand from translating into really good movement. --- POLISHED: -1 point: Very good demand: $100-$200 whites. Good demand: $120-$180 white natts. Fair demand: $200-$250 whites; $50-$55 whites; $125-$175 OW TTLB & TTLC. -2 point: Very good demand: $150-$250 whites. Good demand: $260-$320 whites. Fair demand: $325-$360 whites; $70-$80 whites; $125-$175 white natts; $150-$200 TTLB & TTLC. 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: $400-$450 OW LC; $250-$325 TTLC, $200-$250 OW TTLB & TTLC.; +14-point $525-$575 OW TTLC; $200-$350 white natts; $90-$110 whites. 20 points: Good demand: $150-$200 whites; $300-$350 whites. Fair demand: $200-$300 whites. 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-$1,200 whites; $400-$700 whites. Fair demand: $200-$400 whites; $450-$600 OW TTLC. 75 points: Good demand: $700-$1,300 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 points: Fair demand: $500-$600 whites. 50 points: Good demand: $600-$1,000 whites. 1 carat+: Good demand: $1,000-$1,200 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 points: Fair demand: $275-$325 whites. 25 points: Fair demand: $325-$375 whites; $425-$450 whites. 33 points: Fair demand: $400-$475 whites. 50 points: Good demand: $550-$650 whites; $850-$1000 whites. 1 carat+: Good demand: $800-$1,200 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: Good demand: $24-$50 & $65-$103 sawn princess; $16-$34 & $61-$101 rounds; $35-$79 crystals. Fair movement: $11-$26 & $45-$86 makeables; $75-$105 sawables. 8-20 point: Fair demand: $40-$55 & $79-$119 rounds; $20-$36 & $65-$108 crystals; $25-$53 & $75-$114 sawn princess; $35-$78 clivage. Fair movement: $25-$46 & $73-$110 makeables; $25-$45 LB flats; $36-$55 white flats; $31-$51 baguettes. 21-49 point: Fair demand: $98-$125 rounds; $100-$140 sawn princess; $78-$115 crystals; $150-$220 rounds. Fair movement: $58-$97 clivage & $39-$61 LB flats; $47-$73 white flats; $38-$78 baguettes. 0.5-1 carat: Good demand: $79-$129 & $185-$225 rounds; $115-$167 sawn princess; $78-$138 crystals. Fair movement: $105-$175 makeables; $60-$95 LB flats; $75- $105 white flats; $47-$85 baguettes. 1-3 carat: Good demand: $115-$200 clivage; $120-$173 rounds; $909- $1,254 makeables & rounds +3 carats. Fair movement: $200-$310 makeables; $85-$120 flats; $187- $283 OW; $150-$225 sawables. ======================================== Are you interested in trading Rough or Polished diamonds? Contact the Rapaport Trading Department [e-mail] Rapaport Offices in New York, Las Vegas Antwerp, Vicenza, Ramat Gan, Mumbai and Hong Kong. ========================================= ==== TradeWire Notices And Restrictions ==== === Providing News === If you have any news that may be of interest to our readers, please send your information via email to [e-mail]. You may also call our editorial department at 1-212-354-9100 ext. 242. === Share Your Opinions === The Rapaport TradeWire encourages readers to share their views. 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