RAPAPORT NEWS SERVICE | OCT. 21, 2010 www.rapaport.com | news@rapaport.com

Industry Retail EconWatch India Mining General

RapUp Oct. 21, 2010

Trading centers quieter than expected ahead of U.S. holiday season. High expectations for strong Diwali season to boost Indian jewelry retail sales. Surat Rough Diamond Sourcing (India) requests $100M/month rough supply from Zimbabwe. De Beers 3Q production +15% to 9.033M cts as Diamdel reports strong demand in secondary market. BHP Billiton 1Q production -10% to 703,000 cts. Christie’s NY jewelry sale at $52.4M (90% sold by lot), Bulgari ring with 10.95 ct, fancy vivid blue, VS2 and 9.87 ct, G, VS1 triangular diamonds sells for $15.8M ($1.4M/ct). UN Security Council extends trade sanctions on Cote d’Ivoire for six months.

RapNet Data: Oct. 21

Diamonds 776,414
Value $4,781,347,879
Carats 847,847
Average Discount -31.89%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

October
25-28
Mon-Thu

Rapaport Polished Diamond Auction

Single Stone Auction
0.30ct to 5ct+
All shapes and qualities
Excellent buying opportunities
www.rapaportauctions.com
email: auctions@rapaport.com

November
9-15
Tue-Mon
Rapaport Certified Diamond Auction Online

GIA graded, Excellent to Triple Very Good,
Round, 0.50-10.00 carat, D-K, IF-VS2 diamonds.

Unique online global auction.

Source polished diamonds directly from the major diamond cutting centers.

Auction opens Nov. 9, at 9 a.m. Mumbai-time
and closes Nov. 15 at 5 p.m. NY-time

To register as a buyer or supplier visit: www.rapaport.com/auctions

QUOTE OF THE WEEK:
We are beginning to see some momentum building. Consumers are starting to shop, buying brands rather than private labels, furniture, home improvements. Then they see all the things they could have bought but haven’t and say, ‘Oh, I really do need that.

Marshal Cohen | NPD Group

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

De Beers 3Q Production +15%

De Beers third quarter production rose 15 percent to 9.033 million carats. The increase came in response to market demand in advance of the various holiday retail seasons, which include Christmas and Diwali. Output was focused on its Botswana and South Africa mines, which offset lower recoveries from Namibia and Canada. For the period January through September, De Beers production increased 69 percent to 24.465 million carats.

Demand was also evident in the secondary market as Diamdel reported strong sales from online auctions during the quarter. Diamdel made available 238 lots during the period, with goods ranging from -3 grainers, 3 to 8 grainers and 2 to 15 carat sizes. Just fewer than 99 percent of these lots were sold at their first presentation with only four lots not meeting reserve. Some 157 different companies participated in the auctions during the quarter with 81 different winners, of which 25 were new winners.

Bulgari Blue Diamond Scores $15.8M at Christie’s

Chalk another one up to the recent winning streak of blue diamonds as Christie’s New York garnered $15,762,500 for the Bulgari Blue Diamond ring (watch video). The ring showcased a triangular cut fancy vivid, VS2, 10.95 carat blue and a 9.87 carat, G, VS1 white diamond of the same cut. At $1.4 million per carat a new world auction per carat price was set for a blue diamond. The lucky buyer was an Asian private who bought the stone over the phone. The sale totaled $52.4 million for 447 lots, which were 90 percent sold by lot and 95 percent sold by dollar value. Bidding was active for the vast majority of lots, especially during the morning session that showcased a private collection filled with signed, wearable jewelry from the major design houses, especially Van Cleef & Arpels.

Bharat Diamond Bourse Opens

After two decades in the making, the Bharat Diamond Bourse was inaugurated on Sunday in Mumbai. Billed the largest diamond trading center in the world, covering 20 acres of land, the complex is now within the city’s financial district and closer to the Mumbai airport.

Surat Seeks Monthly Rough Supply from Zim

Surat Rough Diamond Sourcing Limited (SRDS) asked Zimbabwe to supply it with $100 million worth of Marange diamonds each month. In exchange, partners in the company will train the country’s artisans in cutting and polishing and will provide it with technical assistance. Polished diamonds will be distributed to the company’s stakeholders and sold at tenders. On the other hand, some larger local manufacturers said they would not buy Marange goods until Kimberley Process issues have cleared.

Bain & Co. Study Says Luxury Goods Sales to Rise 10%

Bain & Co. predicted a 10 percent increase in luxury goods sales in 2010, noting that the recession for the sector ended in the fourth quarter of 2009. The consulting firm predicted growth for all luxury goods categories with apparel sales jumping 8 percent, and hard luxury goods—including watches and jewelry— rising 13 percent. Accessories, shoes and leather goods would increase by 16 percent and perfume and cosmetic sales will grow by 4 percent. The study found that the economic turnaround was evident by double-digit sales increases in the second and third quarter of this year; a quick return of shoppers to luxury goods stores; the continued growth of China; a rebound of U.S. sales and particularly strong sales of leather, shoes and accessories.

RETAIL

U.S. Jewelry CPI Reaches New High

The consumer price index (CPI) for jewelry in the U.S. rose 3.7 percent to about 163.7 points in September, the highest level ever recorded. The CPI for all product categories rose only 1.1 percent year on year in September.

U.S. Chain Store Sales +2%

Although consumer spending from week to week fluctuates either side of flat, ICSC and Goldman Sachs found that U.S. chain-store sales rose 1.7 percent from one year ago this past week. However, retail sales slipped 0.7 percent, week to week, from the previous week. ICSC predicts that year-over-year same-store sales growth would register about 2.5 percent for October.

U.S. Department Store Sales -1% in Sept.

U.S department store sales fell 0.8 percent year on year to $15.49 billion in September, showing the continued weakness in the sector. However, retail trade sales for all merchants rose 7.7 percent.

Zale to Record $46M Charge

Zale will record $45.8 million in charges in its first fiscal quarter ending in October. One charge was related to a $25.5 million payment to Golden Gate Capital to modify a loan agreement that removed a minimum earnings requirement. Golden Gate recapitalized Zale in May. Zale remains under investigation by the SEC for financial statement errors.

Shoppers More Likely Buy Jewelry for Christmas Gifts

The NRF 2010 Holiday Consumer Intentions and Actions Survey, found that shoppers plan to spend an average 2 percent more on gifts than the previous year, and 23 percent of consumers added jewelry to their list this season, up from 20.8 percent in 2009. The number of people who plan to holiday shop at merchants specializing in discounted items dropped from 70.1 percent in 2009 to 65.1 percent this year. Another sign that shoppers felt better about the economy was evident from those who planned to make self-purchases this Christmas at 57 percent from 53 percent in 2009.

Wealthy Consumers Plan to Reduce Jewelry Spending

The Luxury Institute found that high net worth consumers in the U.S. remain frugal, but not as much as they were one year ago. Consumers will spend on what the need, instead of what they want, putting pressure on jewelry purchases this year. A study found that 33 percent of wealthy consumers said they would cut back spending on jewelry, 29 percent would reduce home furnishing purchases, 27 percent would cut back on watches, 26 percent would reduce handbag spending and 24 percent would decrease car purchases.

ZeeVoog Launched Diamond Jewelry Collection

After six years in the making, ZeeVoog Inc. introduced their patented “Diamond in a Diamond” collection. The unique design consists of a diamond encrusted within a diamond of contrasting colors without any visible metals to create a seamless, prongless setting.

Ralph Lauren Opens New Location

Ralph Lauren’s 22,000-square-foot, four-story, women’s flagship store opened on Madison Ave. in Manhattan. The new store also carries the designer’s six new jewelry collections, which will be expanded within the year to select markets.

Qatar Diamond Jewelry Demand Rises

Due to the skyrocketing price of gold, shoppers in Qatar are buying diamond jewelry. Consumers are purchasing so many diamonds and precious stones, that the sale of diamond jewelry has increased by 30 percent. Also adding to the surging sales, jewelers in the area are engaging in aggressive advertising campaigns.

GENERAL

S.A. Groups Seek Marange Operation Transparency

The Southern African Resource Watch (SARW) and three members of Chiadzwa community in Marange, Zimbabwe, have petitioned New Reclamation Group in South Africa to reveal the full extent of Mbada Diamonds operations. SARW contended that New Reclamation, parent company of Mbada, could clarify many issues of concern in the Marange including who benefits from diamond wealth.

The petitioners seek access to documents that assured Old Mutual, an investor in New Reclamation, to support claims that activities in Zimbabwe were of benefit to locals and part of a ‘clean-up’ operation of the Marange diamond fields.

The petition is permitted through an open records type of law in South Africa and if New Reclamation does not respond, the parties vowed to consider legal action.

Zimbabwe Court Acquits Farai Maguwu

Farai Maguwu, the director of Zimbabwe’s Centre for Research and Development, has been acquitted from charges that he presented government documents to Kimberley Process monitor Abbey Chikane. Police accepted that they had no evidence against him.

Maguwu was detained for 39 days by the police for passing on the documents which reportedly described various human rights violations in the Marange diamond fields. His lawyer, Trust Maanda, said he was happy that the police finally found that the case had no evidence.

UBM Acquires Majority Stake in Rotaforte

United Business Media (UBM) Limited will acquire a 65 percent stake in Rotaforte, on behalf of UBM Asia, expanding the groups presence in Asia and Eastern Europe. The business is estimated to generate revenue of more than $5 million and the value of gross accents being acquired is $300,000. Rotaforte’s strong influence in the jewelry industries of Turkey, Russia and the Ukraine, nicely complements UBM Asia’s portfolio of jewelry shows in Hong Kong, China, India and Japan.

UN Extends Ban on Cote d’Ivoire

The UN Security Council renewed sanctions against Cote d’Ivoire for another six months, including the ban on rough diamonds. The Security Council promised to review sanctions within three months of that nation holding a free and fair presidential election. If the elections, which are currently scheduled to take place on October 31, go as planned, they could finally unite the rebel-held north and the government controlled south. Campaigns are underway and so far going peacefully.

MINING

ALROSA Board Approves 2010 Targets

ALROSA’s board approved new fiscal year targets, which expect to produce $2.32 billion worth of rough diamonds this year and estimates consolidated rough and polished diamond sales of $3.42 billion. The board projected total rough sales of $3.29 billion and polished sales of $125 million for the year 2010.

Rockwell Diamonds 1H Sales +118% to $18M

Rockwell Diamonds first half production from its three mines rose 18 percent to 14,168 carats. Rough diamonds sold at an average price of $1,243 per carat, boosting sales 118 percent to $17.7 million. The company also reported a loss of $1 million, narrowed from a loss of $6.6 million one year ago.

BHP 1Q11 Production -10%

BHPs diamond production fell 10 percent to 703,000 carats in the first fiscal quarter ending September 30. The decline resulted from lower ore processed and lower average grade achieved at its Ekati mine in Canada.

ECONWATCH

For the week ending Oct. 20

Oct. 20 Oct. 14 Chng.
$1 = Euro 0.716 0.710 0.006
$1 = Rupee 44.37 44.20 0.2
$1 = Israel Shekel 3.62 3.57 0.05
$1 = Rand 6.93 6.80 0.13
$1 = Canadian Dollar 1.02 0.99 0.03

Precious Metals
Gold $1,344.00 $1,380.50 -$36.50
Platinum $1,681.00 $1,711.00 -$30.00

Stock Indexes Chng.
BSE 19,872.15 20,497.64 -625.49 -3.1%
Dow Jones 11,107.97 11,094.57 13.40 0.1%
FTSE 5,728.93 5,727.21 1.72 0.0%
Hang Seng 23,556.50 23,852.17 -295.67 -1.2%
S&P 500 1,178.17 1,173.81 4.36 0.4%
Yahoo! Jewelry 983.06 963.55 19.51 2.0%

USA
Birks & Mayors $1.15 $1.20 -$0.05 -4.2%
Blue Nile $42.46 $43.97 -$1.51 -3.4%
Charles & Colvard $2.16 $2.05 $0.11 5.4%
DGSE Companies $3.98 $3.90 $0.08 2.1%
Fuqi Intl. $7.32 $7.87 -$0.55 -7.0%
JCPenney $32.96 $33.14 -$0.18 -0.5%
Kohls $51.94 $52.27 -$0.33 -0.6%
LJ Intl. $4.92 $4.88 $0.04 0.8%
Macys $22.43 $24.03 -$1.60 -6.7%
Man Sang $2.95 $2.75 $0.20 7.3%
Movado Group $11.38 $11.49 -$0.11 -1.0%
Nordstrom $36.95 $38.17 -$1.22 -3.2%
Saks $10.12 $9.90 $0.22 2.2%
Signet $33.95 $32.40 $1.55 4.8%
Sothebys $37.88 $37.74 $0.14 0.4%
Tiffany $49.85 $49.41 $0.44 0.9%
Walmart $53.47 $53.25 $0.22 0.4%
Zale $2.59 $2.58 $0.01 0.4%

EUROPE
Bulgari €7.29 €7.28 €0.01 0.1%
Bijou Brigitte €115.42 €110.30 €5.12 4.6%
Damiani €0.88 €0.89 -€0.01 -1.1%
LVMH €108.90 €111.45 -€2.55 -2.3%
PPR €113.50 €118.45 -€4.95 -4.2%
Richemont CHF 46.80 CHF 48.11 -CHF 1.31 -2.7%
Swatch Group CHF 362.50 CHF 368.00 -CHF 5.50 -1.5%
Theo Fennell (pence) 42.00 44.00 -2.00 -4.5%

INDIA (rupee)
Classic Diamond 20.30 21.10 -0.80 -3.8%
Gitanjali Gems 247.25 243.80 3.45 1.4%
Goldiam Intl. 47.75 50.40 -2.65 -5.3%
Rajesh Exports 100.80 112.35 -11.55 -10.3%
Ren. Jewellery 78.05 77.30 0.75 1.0%
Su-Raj Diamonds 62.65 63.75 -1.10 -1.7%
Titan 3,167.60 3,311.00 -143.40 -4.3%
Zodiac JRD 30.55 31.30 -0.75 -2.4%
Suashish Diamonds 161.50 168.40 -6.90 -4.1%

NEW ZEALAND
Michael Hill NZD 0.73 NZD 0.71 NZD 0.02 2.8%

MINING STOCKS
CANADA
Harry Winston CAD 12.57 CAD 13.05 -CAD 0.48 -3.7%
Lucara Diamond CAD 0.85 CAD 0.90 -CAD 0.05 -5.6%
Mountain Province CAD 4.73 CAD 4.48 CAD 0.25 5.6%
Peregrine Diamonds CAD 2.31 CAD 2.30 CAD 0.01 0.4%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 -4.3%
Shore Gold CAD 0.71 CAD 0.72 -CAD 0.01 -1.4%
Stornoway Diamond CAD 0.59 CAD 0.62 -CAD 0.03 -4.8%
True North Gems CAD 0.14 CAD 0.11 CAD 0.03 27.3%
UK (pence)
African Diamonds 38.50 37.65 0.9 2.3%
Anglo American 2,871.00 2,863.50 7.5 0.3%
BHP Billiton 2,192.50 2,215.00 -22.5 -1.0%
Firestone Diamonds 25.15 24.55 0.6 2.4%
Gem Diamonds 190.00 197.00 -7.0 -3.6%
Gemfields 10.50 9.76 0.7 7.6%
Mwana Africa 11.42 11.55 -0.1 -1.1%
Namakwa Diamonds 41.00 43.00 -2.0 -4.7%
Petra Diamonds 84.28 90.00 -5.7 -6.4%
Rio Tinto plc 4,056.00 4,100.00 -44.0 -1.1%
Stellar Diamonds 6.25 6.50 -0.3 -3.8%

INDIA MARKET REPORT

RAPAPORT NEWS SERVICE | NOV. 5, 2010 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Mining

RapUp Nov. 5, 2010

Zimbabwe threatens unconditional immediate resumption of Marange diamond exports with or without KP certificates as KP plenary fails to reach decision on country’s compliance. ZMDC, Canadile officials arrested for fraud. Indian polished and rough trading quiet as trade closes for Diwali with retailers expecting strong sales during festival. Gold hits record $1,395oz. Petra secures $84M debt facility to fund Cullinan and Williamson mine expansions. Lazare Kaplan reaches $14M debt settlement agreement with ABN AMRO bank. Blue Nile 3Q sales +1% to $68M, profit +8% to $3M. Gitanjali acquires fashion jewelry manufacturer Pink Jewellery Private Ltd. Shrenuj & Co 2Q sales +52% to $136M, net profits +23% to $3.3M. Japan’s Sept. polished imports +30% to $72.4M. Rapaport Certified Diamond Auction on the Internet to begin Tuesday

RapNet Data: Nov. 4

Diamonds 767,266
Value $4,691,179,398
Carats 834,242
Average Discount -31.74%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

November
9-15
Tue-Mon

Rapaport Certified Diamond Auction Online

GIA graded, Excellent to Triple Very Good,
Round, 0.50-10.00 carat, D-K, IF-VS2 diamonds.

Unique online global auction.

Source polished diamonds directly from the major diamond cutting centers.

Auction opens Nov. 9, at 9 a.m. Mumbai-time
and closes Nov. 15 at 5 p.m. NY-time

QUOTE OF THE WEEK:
In recent non-recessionary years, it hasn’t been unusual to see growth rates of 3% to 5%. But the weak growth we’re forecasting for retail sales this holiday season [at 1.5%] is all the economy can muster at present. This recession has hit hard on the pocketbooks of the American family, and people are not ready to start spending again just yet.

Dave Sievers | Archstone Consulting

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Gem Diamonds Recovers 185ct Stone

Gem Diamonds recovered a 185-carat diamond from the Letseng mine in Lesotho. The diamond is the second of two large white stones recovered from Letseng recently. First impressions of the stone indicated that it will yield top color and clarity polished diamonds and it is expected to achieve a substantial price per carat.

KP Fails to Make Decision on Zimbabwe

The Kimberley Process (KP) plenary in Jerusalem ended, once again, without consensus on whether or not Zimbabwe could export Marange rough. Member states involved will work electronically now towards reaching a decision, based upon findings from the August KP review mission report on Zimbabwe.

However, Zimbabwes mines minister Obert Mpofu made it clear to the KP that his nation would no longer be held hostage by the west and vowed to immediately and unconditionally resume Marange exports.

The Democratic Republic of the Congo assumes the role of KP chairmanship from Israel on January 1, but a vice-chair role was not filled at the plenary.

Rapaport Weekly Broadcast

WATCH NOW: Platinum Guild International USA provided a look at the latest trends in platinum diamond jewelry. In this video broadcast, notice how more designers are using rough stones in their jewelry and how the use of smaller diamonds still create an elegant fashion statement but with that lower price point the average customer wants.

RETAIL & WHOLESALE

Blue Nile 3Q Sales +1%

Blue Niles third quarter sales rose 0.8 percent to $67.5 million while cost of sales increased by 1.3 percent to $52.8 million. Blue Nile reported a profit increase of 7.7 percent to $2.8 million for third quarter, which ended October 3, 2010. International sales grew 5.7 percent to $9.3 million, which left U.S. sales at $58.2 million or where they were one year ago.

Blue Nile reported strong growth in Canada and Asia/Asia-Pacific, while sales were weak in the U.K. and Europe as a result of global economic concerns combined with weaker currencies compared with the dollar. As a percentage of sales, gross profit totaled 21.7 percent. Within product categories, sales growth was relatively stronger in non-engagement jewelry as compared with the diamond engagement category.

U.S. Chain-Store Sales +2%

October U.S. chain-store sales rose 1.6 percent year-over-year, which was slightly below previous growth predictions, according to the International Council of Shopping Centers (ICSC). ICSC Research is forecasting November gains at the chains of 3 percent to 4 percent on a comparable store basis. Retailers have begun Christmas sales early and aggressively, providing an "encouraging launch" to the 2010 holiday shopping season, ICSC concluded.

Online 3Q Retail Sales +9% to $32B

Online retail sales in the U.S. during the third quarter rose 9 percent from one year ago to $32.1 billion, according to comScore. The single digit increase represented the fourth consecutive quarter of positive year-over-year growth following a full year of flat or negative growth rates.

Renaissance 2Q Sales -2%

Renaissance Jewellery reported that sales from operations fell 2 percent to $26.4 million (NR 1.17 billion) in the second quarter ending September 30. Expenses were cut 4 percent to $23.7 million as net profits grew 21 percent to $1.8 million. Renaissance confirmed this week that it had acquired N. Kumar Diamond Exports along with the company’s furniture outlet House Full International.

Charles & Colvard 3Q Sales +40% to $3M

Charles & Colvard reported third quarter sales rose 40 percent to $3 million for the three months that ended September 30. The company reported a profit of $511,952 compared with a loss of $569,367 one year ago. Charles & Colvard also retained RJ Falkner & Co. to develop and implement a comprehensive investor relations program.

Shrenuj 2Q Sales +52% to $136M

Shrenuj & Co. reported sales increasing 52 percent to $135.7 million (INR 6.03 billion) in the second fiscal quarter ending September 30. In dollar terms, diamond sales jumped 82 percent to $110.4 million, while jewelry sales fell 6 percent to $27.2 million.

Tiffany Breaks Ground on Manufacturing Facility

Tiffany & Co. broke ground in Lexington, Kentucky, for a new manufacturing facility. It will be the first outside the northeast and will employ 125 people. The 25,000 square foot facility will span more than four acres and is expected to be built and operational by the spring.

Fred Meyer to Carry Kathy Ireland Collection

Fred Meyer Jewelers will carry Kathy Ireland’s jewelry collection, which features bridal, diamond fashion and colored gemstone pieces. The line will be available at nearly 400 Fred Meyer Jewelers and Littman Jewelers in 36 states and online at the store’s websites.

Bailey Banks & Biddle Returns

Bailey Banks & Biddle reopened in Plano, Texas. The Philadelphia-based brand was liquidated after Christmas 2009 as part of a larger bankruptcy with Finlay. But now there are plans to open between five to 10 Bailey Banks & Biddle stores in 2011 and 50 shops by 2015.

LJ Int’l Secures Funding for Retail Expansion

LJ International finalized $26 million in new financing through a private placement and a credit facility with a leading bank in China, which assures enough capital for the company’s ongoing retail expansion of 60 new ENZO jewelry stores in 2011.

Argyle Pink Diamond Tender Ends

Rio Tinto wrapped up its 2010 Argyle pink diamonds tender, noting that all 55 diamonds offered were sold to a broad representation of both emerging and mature markets. No sales totals were provided, but the company said that the results of the tender indicate that there is a growing appreciation of the rarity and value of the pink diamonds.

Gitanjali Acquires Pink Jewellery Private

Gitanjali Gems acquired Pink Jewellery Private Ltd. through Brightest Circle Jewellery Private Ltd., a wholly owned subsidiary. Financial details of the transaction were not made available. The acquisition is likely part of the brands plan to expand.

MINING

Survival Int’l Calls to Boycott Botswana Diamonds

Human rights group Survival International called for a boycott of Botswana diamonds at De Beers flagship stores in London and San Francisco. The organization claims that Kalahari Bushmen continue to suffer in the name of diamond mining. De Beers sold its untouched concessions at Gope to Gem Diamonds, but Survival International contended that it was targeting the De Beers brand — not Gem Diamonds — because Botswana still owns 15 percent interest in the diamond giant and also owns 50 percent of Debswana.

ALROSA 3Q Profits -42%

ALROSA posted a 42 percent drop in net profits, as figured by Russian Accounting Standards (RAS) and local currency, to RUB 3.454 billion or $112.3 million. ALROSA reported a net loss of RUB 2.06 billion, or $67 million, during the second quarter by RAS measures. Revenue for only the first two quarters was revised up to RUB 64.4 billion, $2.1 billion, and it was estimated that revenue for the first nine months therefore was $2.8 billion.

On an unrelated note, ALROSA also completed placement of Eurobonds worth $1 billion. A consortium of banks — J.P. Morgan, UBS and VTB Capital — acted as organizers of the flotation. The securities have been placed for 10 years, with the interest rate set at 7.75 percent per annum. ALROSA plans to use these proceeds to refinance its current debt.

Namakwa Sells 22,841cts for Nearly $10M

Namakwa Diamonds raised $9.552 million from the sale of 22,841 carats. Nearly 6,300 carats came from the company’s Storm Mountain Diamonds operations in Lesotho and 10,549 carats were from the Kasai Central Node in the Democratic Republic of the Congo, while nearly 6,000 carats were from alluvial operations in the North West Province of South Africa.

Petra Secures $84M in New Debt Facilities

Petra Diamonds secured loan facilities of $83.5 million in total. IFC, a member of the World Bank Group, provided a $40 million loan and Rand Merchant Bank agreed to a $43.5 million facility and extended Petra’s existing $14.5 million overdraft loan. The funds will finance the expansions of the Williamson mine in Tanzania and the Cullinan mine in South Africa.

Mountain Province Raises $23M

Mountain Province Diamonds entered an agreement with Wellington West Capital Markets and a non-brokered private placement for gross proceeds totaling $23 million. The company plans to use the funds to advance the Gahcho Kue diamond project in the Northwest Territories of Canada and for general corporate purposes.

Peregrine Raises $12M

Peregrine Diamonds completed a $10 million brokered private placement with the full exercise of an over-allotment option for an additional $2 million. Peregrine issued a total of 4.8 million units at a price of $2.50 per unit for gross proceeds of $12 million.

Paragon Diamonds Raises $5M

Paragon Diamonds raised $5.1 million on London’s AIM during the explorer’s initial listing. Proceeds from the placement will be used to purchase fixed assets and provide general working capital to increase production from the Konoma Mine in Sierra Leone.

Lucara to Begin Construction at AK6

Lucara Diamonds and AK6 joint venture partner African Diamonds received approval for construction of that diamond project in Botswana and have concluded an agreement with the Botswana Power Corporation for bulk supplies. Senior staff was also recruited.

Lucara Diamonds also reported first results from a trial mining program at its own Mothae diamond mine in Lesotho. Trial mining to date recovered 2,179.38 carats from the project.

ECONWATCH

For the week ending Nov. 4

Nov. 4 Oct. 28 Chng.
$1 = Euro 0.700 0.723 -0.023
$1 = Rupee 44.00 44.40 -0.4
$1 = Israel Shekel 3.60 3.65 -0.05
$1 = Rand 6.79 6.99 -0.20
$1 = Canadian Dollar 1.00 1.02 -0.02

Precious Metals
Gold $1,392.90 $1,343.40 $49.50
Platinum $1,780.00 $1,691.00 $89.00

Stock Indexes Chng.
BSE 20,893.57 19,941.04 952.53 4.8%
Dow Jones 11,434.84 11,113.95 320.89 2.9%
FTSE 5,862.79 5,677.89 184.90 3.3%
Hang Seng 24,535.63 23,210.86 1,324.77 5.7%
S&P 500 1,221.06 1,183.79 37.27 3.1%
Yahoo! Jewelry 1,086.84 1,016.19 70.65 7.0%

USA
Birks & Mayors $1.26 $1.21 $0.05 4.1%
Blue Nile $45.50 $42.59 $2.91 6.8%
Charles & Colvard $2.09 $1.88 $0.21 11.2%
DGSE Companies $4.25 $4.01 $0.24 6.0%
Fuqi Intl. $7.71 $7.63 $0.08 1.0%
JCPenney $32.32 $31.69 $0.63 2.0%
Kohls $51.92 $51.99 -$0.07 -0.1%
LJ Intl. $5.64 $5.07 $0.57 11.2%
Macys $25.56 $23.29 $2.27 9.7%
Man Sang $3.29 $2.88 $0.41 14.2%
Movado Group $11.70 $11.17 $0.53 4.7%
Nordstrom $41.93 $38.73 $3.20 8.3%
Saks $11.78 $11.05 $0.73 6.6%
Signet $36.54 $35.31 $1.23 3.5%
Sothebys $44.72 $42.91 $1.81 4.2%
Tiffany $55.87 $51.50 $4.37 8.5%
Walmart $55.36 $54.08 $1.28 2.4%
Zale $2.83 $2.52 $0.31 12.3%

EUROPE
Bulgari €7.65 €7.62 €0.03 0.4%
Bijou Brigitte €116.55 €114.70 €1.85 1.6%
Damiani €0.90 €0.83 €0.07 8.4%
LVMH €119.20 €112.35 €6.85 6.1%
PPR €117.75 €118.55 -€0.80 -0.7%
Richemont CHF 52.65 CHF 48.83 CHF 3.82 7.8%
Swatch Group CHF 400.60 CHF 375.00 CHF 25.60 6.8%
Theo Fennell (pence) 39.00 41.00 -2.00 -4.9%

INDIA (rupee)
Classic Diamond 20.65 20.70 -0.05 -0.2%
Gitanjali Gems 335.30 295.80 39.50 13.4%
Goldiam Intl. 50.25 49.00 1.25 2.6%
Rajesh Exports 130.80 118.25 12.55 10.6%
Ren. Jewellery 77.85 80.70 -2.85 -3.5%
Su-Raj Diamonds 66.10 66.80 -0.70 -1.0%
Titan 3,827.80 3,478.55 349.25 10.0%
Zodiac JRD 30.00 31.35 -1.35 -4.3%
Suashish Diamonds 155.55 161.40 -5.85 -3.6%

NEW ZEALAND
Michael Hill NZD 0.80 NZD 0.78 NZD 0.02 2.6%

MINING STOCKS
CANADA
Harry Winston CAD 13.04 CAD 12.74 CAD 0.30 2.4%
Lucara Diamond CAD 0.93 CAD 0.93 CAD 0.00 0.0%
Mountain Province CAD 5.25 CAD 5.21 CAD 0.04 0.8%
Peregrine Diamonds CAD 2.67 CAD 2.35 CAD 0.32 13.6%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.0%
Shore Gold CAD 0.72 CAD 0.68 CAD 0.04 5.9%
Stornoway Diamond CAD 0.58 CAD 0.55 CAD 0.03 5.5%
True North Gems CAD 0.14 CAD 0.14 CAD 0.00 0.0%
UK (pence)
African Diamonds 39.35 37.85 1.5 4.0%
Anglo American 2,965.00 2,894.00 71.0 2.5%
BHP Billiton 2,430.00 2,221.00 209.0 9.4%
Firestone Diamonds 26.10 26.00 0.1 0.4%
Gem Diamonds 224.00 190.00 34.0 17.9%
Gemfields 9.17 9.27 -0.1 -1.1%
Mwana Africa 10.10 11.00 -0.9 -8.2%
Namakwa Diamonds 45.00 40.60 4.4 10.8%
Petra Diamonds 102.00 88.50 13.5 15.3%
Rio Tinto plc 4,305.50 4,120.00 185.5 4.5%
Stellar Diamonds 6.10 6.00 0.1 1.7%

RAPAPORT NEWS SERVICE | DEC. 3, 2010 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Mining Stats

RapUp Dec. 3, 2010  

Jewelry sales improve over Thanksgiving weekend. Online sales soar with average order value of jewelry sold on Cyber Monday +39% to $384, according to IBM Coremetrics. Overall foot traffic increased but store sales flat in spite of heavy discounts. Polished price resistance easing in trading centers. Firestone Diamonds holds Botswana’s first rough tender. Christie’s Hong Kong sells $79M (88% sold by lot) with 14.23-carat, VVS2, type IIa fancy intense pink, rectangular-cut diamond selling for $23M ($1.6M/Ct). Hong Kong’s 3Q polished imports +37% to $3.8B, polished exports +70% to $2.8B. Belgium’s Oct. polished exports +33% to $1.1B, rough imports +13% to $843M. Japan’s Oct. polished imports +11% to $74M.

RapNet Data: Dec. 2

Diamonds 772,739
Value $4,803,713,022
Carats 848,672
Average Discount -31.44%

Get Current Price List | Subscribe to Rapaport | Join RapNet

ANNOUNCEMENTS

Rapaport Launches Auction Website for GIA Graded Diamonds

GIA graded, Excellent to Triple Very Good,
Round, 0.50-10.00 carat, D-K, IF-VS2 diamonds.
View Online Auction Now: www.rapaport.com/certauction

December
4-6
Sat-Mon
Rapaport at Kerala Gem & Jewellery Show

Le Meridien
Cochin, India
email: prashant.bhojani@diamonds.net

December
13-16
Mon-Thu

Rapaport Melee Auction

New York
Over 34,000 carats.

Tel. 1-212-354-9100
email: auctions@rapaport.com

QUOTE OF THE WEEK:
Were seeing [an] influx in gold because the price is so high right now. [Customer can turn in old, broken gold jewelry, and turn around and buy a new TV or stereo system. Jewelry sales are the only thing going up a little with customers bypassing more mainstream jewelers for the pawnshops collection of gems.

Victor Giaimo | Rockingham Trading Post, NH

Careers@Rapaport

The Rapaport Group is growing rapidly. If you want to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Christie’s Hong Kong Auction Nets $79M

Christies Hong Kong jewelry sale achieved $78,904,265 with 88 percent sold by lot. The top lot, “Perfect Pink,” was a 14.23-carat, VVS2, type IIa fancy intense pink, rectangular-cut diamond and sold for $23,165,968, or $1.63 million per carat. Six lots achieved prices of more than $2 million including a diamond necklace by Nirav Modi featuring a 12.29-carat, D,IF, type IIa pear-shaped diamond which sold for $3,547,152.

Rapaport Weekly Broadcast

WATCH NOW: Christmas retail season kicked off to a good start in the U.S., especially — it seems — for jewelry. While daily spending is far below levels of two years ago, Gallup noted self-reported spending rose 22 percent this past weekend. ShopperTrak found in store sales were flat, but foot traffic rose. NRF estimated that spending across all segments rose and that more shoppers did chose jewelry. Online spending soared and jewelry price points rose 39 percent for the Cyber Monday frenzy. A delegation from Botswana visited Israel this week in search of building business partnerships in a number of industries.

U.S. Nov. Consumer Confidence Rises Slightly

U.S. consumer confidence in November stood at 54.1 points up from 50.6 points one year ago, according to the Conference Board Consumer Confidence Index. The Index is based upon 100 points in 1985, but the most recent time the measure hit that benchmark was in August 2007.

RETAIL & WHOLESALE

Nov. Retail Sales

U.S. chain-store sales rose 5.8 percent in November, according to the International Council of Shopping Centers (ICSC). Luxury goods retailers posted a 5.2 percent increase on a same-store basis. Here’s how top retailers fared for the month of November:
Saks’s total sales increased 4 percent to $254.9 million, same-store sales rose 5.3 percent.

JCPenney sales grew 7.2 percent to $1.8 million, and same-store sales rose 9.2 percent.

Macy’s sales rose 7.8 percent to $2.3 billion while same-store sales rose 6.1 percent.

Nordstrom’s sales increased 8.8 percent to $815 million and same-store sales grew 5.1 percent.

Costco sales increased 12 percent to $6.78 billion and same-store sales rose by 6 percent.

Neiman Marcus reported a 5.8 percent increase in sales to $322 million, while same-store sales rose 5.5 percent.
Movado reported third quarter results and while sales were flat at $123 million adjusted net income was at $12.5 million, up from $4.5 million a year ago.

Kalyan Jewellers to Open in Hyderabad

Kalyan Jewellers will open a 15,000 square foot showroom in Hyderabad. The new store, located at Panjagutta, will be an open, hip space, carrying the entire line of gold, platinum and diamonds created by Kalyan Jewellery. It will also feature a special area for buying vintage gold, jewelry, diamonds, watches and collectibles — a new line of business for the company. Male celebrity Nagarjuna was also named to represent the new face of the brand.

TGJTA Opens in India

The Thai Gem & Jewelry Traders Association (TGJTA) and Mumbai-based real estate company Ackruti, signed a marketing agreement this week to establish a distribution center. TGJTA will facilitate trade between suppliers in Thailand and buyers in India. TGJTA will expand this program if the project is a success.

Hearts On Fire Launches eCommerce

Hearts On Fire partnered with ESDN to bring ecommerce capabilities to its retail partners. Consumers can also now purchase select Hearts On Fire jewelry designs on either Heartsonfire.com or on participating retailer websites.

Gemesis to Market Direct

Gemesis is developing its own jewelry line, designed especially for the lab-created gems and as part of its growth initiative, Gemesis will be launching an e-commerce website in the coming months, combined with parallel sales through limited retailer partnerships. The company’s internet pricing will not undermine participating retailers, according to the firm. Further, new yellow stones will be available in significant carat weights on the e-commerce site along with high-quality colorless diamonds.

Sharon Stone Promotes Jewelry Line for Charity

Sharon Stone was at an event in Beverly Hills this week promoting her jewelry line “Maji” which she worked on for four years with Italian jeweler Damiani. The collection consists of rings, bracelets, necklaces and earrings made from gold, silver and rough diamonds. All proceeds from Maji sales go directly to the charity Drop in a Bucket, which aims to improve the quality of drinking water in Africa.

Dealers Robbed in Los Altos

Two Manhattan diamond salesmen were hit in Los Altos, California, following a jewelry store appointment. The victims had just left the store and were preparing to head back to SFO and return to New York when a car with four masked men blocked the dealers from pulling out of a parking lot. Police reported that no weapons were used, however an altercation of some kind took place leaving one of the dealers hurt. The robbers made off with an undisclosed sum of diamonds.

STATS

Japan Imports

October $Mil Chng.
Polished imports $74 11%
Gold jewelry $72 (7%)

YTD
Polished imports $584 12%
Gold jewelry $533 13%

Hong Kong Imports & Exports

Jul.-Sept. $Mil Chng. YTD $Mil Chng.
Polished imports $3,760 37% $10,020 42%
Polished exports $2,840 70% $7,300 44%
Net imports $920 $2,720

Rough imports $264 16% $834 15%
Rough exports $306 30% $835 13%
Net imports ($42) ($1)

Net diamond acct. $881 (17%) $2,719 39%

Belgium Imports & Exports

Figures are rounded Oct. $Mil Chng. YTD $Mil Chng.
Polished exports $1,050 33% $9,130 28%
Polished imports $938 23% $8,610 30%
Net exports $111 $520 2%

Rough imports $843 13% $7,840 52%
Rough exports $943 39% $9,000 58%
Net imports ($100) $1,170

Net diamond acct. $211 $1,690 58%

MINING

Trans Hex Tender Nets $14M

Trans Hex raised $14.2 million during its November rough tender. The company sold 12,360 carats of diamonds for an average $1,145 per carat. The largest stone, a 23.22 carat stone from the Baken mine, sold for more than $30,000 per carat. Ten single stones sold for an average price of more than $10,000 per carat. Its joint venture project Luana in Angola realized sales of $2.3 million from 5,700 carats.

Firestone Diamonds Hosts First Botswana Rough Tender

Firestone Diamonds marketed its first sale of rough diamonds outside of the De Beers framework in Botswana this week. The tender runs until December 9, and includes 2,500 carats of diamonds from the BK11 mine in Botswana and 12,000 carats from the Liqhobong mine in Lesotho. Firestone has set a cycle of 10 tenders to be held in 2011 and expects to sell between 40,000 to 50,000 carats per tender when both its mines are at full production. The company expects to generate approximately $5 million from each tender projecting annual sales of around $50 million.

Vaaldiam Brauna Valuation at $338p/ct.

Vaaldiam Mining reported that two independent diamond valuations of 1,013.75 carats from the south lobe of its Brauna 3 kimberlite pipe place the per carat value at $338. The Brauna property is in Bahia State, Brazil.

Peregrine Maintains Share of Chidliak

Peregrine Diamonds and BHP Billiton will maintain their respective 49 percent and 51 percent stakes in the Chidliak diamond venture. The 2011 field program, led by Peregrine, will begin in March 2011.

Gemfields 1Q Production Soars

Gemfields reported first quarter production of emerald and beryl at 12.8 million carats, which was more than the junior colorstoned miner produced in all of the previous year. Company chief Ian Harebottle stated that high levels of production were not sustainable. Cost of production fell to 26-cents per carat from 73-cents per carat one year ago. The mining company expects to hold a rough emerald tender next week.

ECONWATCH

For the week ending Dec. 2

Dec. 2 Nov. 25 Chng.
$1 = Euro 0.759 0.746 0.013
$1 = Rupee 45.00 45.50 -0.5
$1 = Israel Shekel 3.66 3.66 0.00
$1 = Rand 6.89 7.05 -0.16
$1 = Canadian Dollar 1.00 1.01 -0.01

Precious Metals
Gold $1,384.40 $1,374.70 $9.70
Platinum $1,710.00 $1,657.00 $53.00

Stock Indexes Chng.
BSE 19,992.70 19,318.16 674.54 3.5%
Dow Jones 11,362.41 11,187.28 175.13 1.6%
FTSE 5,767.56 5,703.77 63.79 1.1%
Hang Seng 23,448.78 23,054.68 394.10 1.7%
S&P 500 1,221.53 1,198.35 23.18 1.9%
Yahoo! Jewelry 1,030.10 997.87 32.23 3.2%

USA
Birks & Mayors $1.34 $1.13 $0.21 18.6%
Blue Nile $50.40 $46.30 $4.10 8.9%
Charles & Colvard $2.77 $2.18 $0.59 27.1%
DGSE Companies $3.95 $4.12 -$0.17 -4.1%
Fuqi Intl. $6.21 $6.42 -$0.21 -3.3%
JCPenney $34.48 $32.82 $1.66 5.1%
Kohls $55.03 $57.55 -$2.52 -4.4%
LJ Intl. $3.86 $3.83 $0.03 0.8%
Macys $25.54 $25.89 -$0.35 -1.4%
Man Sang $3.00 $2.95 $0.05 1.7%
Movado Group $14.95 $11.98 $2.97 24.8%
Nordstrom $42.11 $43.91 -$1.80 -4.1%
Saks $11.47 $11.65 -$0.18 -1.5%
Signet $40.56 $40.16 $0.40 1.0%
Sothebys $41.89 $43.44 -$1.55 -3.6%
Tiffany $63.17 $61.33 $1.84 3.0%
Walmart $54.75 $54.01 $0.74 1.4%
Zale $3.04 $2.87 $0.17 5.9%

EUROPE
Bulgari €7.68 €7.68 €0.00 0.0%
Bijou Brigitte €105.52 €111.44 -€5.92 -5.3%
Damiani €0.86 €0.87 -€0.01 -1.1%
LVMH €122.20 €120.85 €1.35 1.1%
PPR €127.50 €124.60 €2.90 2.3%
Richemont CHF 56.95 CHF 56.05 CHF 0.90 1.6%
Swatch Group CHF 418.80 CHF 408.00 CHF 10.80 2.6%
Theo Fennell (pence) 43.97 42.50 1.47 3.5%

INDIA (rupee)
Classic Diamond 18.40 18.05 0.35 1.9%
Gitanjali Gems 269.05 297.30 -28.25 -9.5%
Goldiam Intl. 42.75 46.40 -3.65 -7.9%
Rajesh Exports 123.05 117.45 5.60 4.8%
Ren. Jewellery 79.15 75.45 3.70 4.9%
Su-Raj Diamonds 61.35 61.80 -0.45 -0.7%
Titan 3,788.85 3,675.40 113.45 3.1%
Zodiac JRD 26.85 29.40 -2.55 -8.7%
Suashish Diamonds 176.85 175.85 1.00 0.6%

NEW ZEALAND
Michael Hill NZD 0.82 NZD 0.80 NZD 0.02 2.5%

MINING STOCKS
CANADA
Harry Winston CAD 14.04 CAD 12.91 CAD 1.13 8.8%
Lucara Diamond CAD 1.02 CAD 0.92 CAD 0.10 10.9%
Mountain Province CAD 5.00 CAD 5.12 -CAD 0.12 -2.3%
Peregrine Diamonds CAD 2.65 CAD 3.05 -CAD 0.40 -13.1%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.0%
Shore Gold CAD 0.77 CAD 0.73 CAD 0.04 5.5%
Stornoway Diamond CAD 0.71 CAD 0.58 CAD 0.13 22.4%
True North Gems CAD 0.13 CAD 0.13 CAD 0.00 0.0%
UK (pence)
African Diamonds 40.68 40.50 0.2 0.4%
Anglo American 2,999.50 2,985.50 14.0 0.5%
BHP Billiton 2,450.00 2,353.00 97.0 4.1%
Firestone Diamonds 25.00 25.00 0.0 0.0%
Gem Diamonds 227.25 208.25 19.0 9.1%
Gemfields 17.00 12.25 4.8 38.8%
Mwana Africa 9.49 9.50 0.0 -0.1%
Namakwa Diamonds 44.00 43.00 1.0 2.3%
Petra Diamonds 109.50 96.00 13.5 14.1%
Rio Tinto plc 4,415.00 4,269.50 145.5 3.4%
Stellar Diamonds 6.10 6.63 -0.5 -8.0%

Rapaport Weekly Market Comment Dec. 10, 2010

U.S. holiday retail sales stable while bad weather in Europe causes surge in online gift buying. Polished market in Far East improves. Christie’s NY sells $22.1M (83% by lot) with 6.89ct. fancy vivid purple-pink diamond selling for $6.9M ($1M/ct.). Harry Winston 3Q rough sales +192% to $61M, retail sales +49% to $80M, group profits $5M vs. loss of $1M. Luk Fook 1H revenue +56% to $420M, profits +71% to $42M. Botswana’s Oct. diamond exports +64% to $308M. Australia 1Q diamond production +6% to 2.5M cts.

RapNet Data: Dec. 9

Diamonds 748,327
Value $4,732,212,300
Carats 829,049
Average Discount -31.42%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

CORRECTION NOTICE

The December 2010 edition of the Rapaport Diamond Report mistakenly identified Asian Star Diamonds of Mumbai, India, as a company in default to Indian banks. In fact, Asian Star is not in default to any bank and is in good financial condition. Asian Star is a leading, highly reliable, first class Indian diamond company that enjoys a well deserved excellent reputation. Rapaport apologized to Asian Star for the error.

December
13-16
Mon-Thu

Rapaport Melee Auction
New York
Over 34,000 carats.
Tel. 1-212-354-9100
auctions@rapaport.com

Dec-Jan
27-6
Mon-Thu

Rapaport Melee & Single Stone Auction
Mumbai, India
Diamonds in all shapes, sizes and qualities.
auctions@rapaport.com

QUOTE OF THE WEEK:
We anticipated that the post-Cyber Monday period would experience a slight hangover after many of the retailers’ most aggressive deals and promotions expired, but we can expect to see activity begin to pick up again next week as we get into the middle part of December when online buying typically peaks.

Gian Fulgoni | chairman comScore

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Negotiations with Zimbabwe Continue

After nearly three weeks of negotiations, the Kimberley Process (KP) and Zimbabwe haven’t yet reached a deal on whether or not the country can export Marange rough. In the midst of these negotiations, India asked diamond firms to hold off accepting Marange rough, pending a decision, as those diamonds could be cut and polished and then eventually end up in the U.S., the U.K. and Australia. India said they would revisit the decision when an agreement between KP and Zimbabwe is reached.

Rapaport Weekly Broadcast

WATCH NOW: Christies New York Jewels sale, which was held at Rockefeller Center on December 7, totaled $22,140,350 and was 83 percent sold by lot, 78 percent sold by value. The top lot was a 6.89 carat, fancy vivid purple-pink diamond, which sold for $6,914,500 or $1 million per carat.

RETAIL & WHOLESALE

Online Retail Sales +12% to $18B

Online Christmas season retail sales increased 12 percent to $17.5 billion between November 1 to December 5, comScore reported. Cyber Monday became the heaviest online spending day to date at $1.03 billion. Online sales for Tuesday, November 30, reached $911 million and Wednesday sales totaled $868 million.

Harry Winston 3Q Sales +88%

Harry Winston Diamond Corp. group sales rose 88 percent to $140.9 million during its third quarter of fiscal year 2011. Cost of sales rose 90 percent to $85.8 million, nonetheless profits rose to $4.7 million from a loss of $1.4 million one year ago.

Rough diamond sales soared 192 percent to $60.7 million and earnings from mining operations rose to $8.3 million from a loss of $4.5 million. Retail sales rose 49 percent to $80.2 million and earnings from operations rose to $5.4 million from a loss of $455,000.

Stephen Webster Opens First U.S. Store

Stephen Webster opened his first U.S. location this week in Beverly Hills.The shop is located on Rodeo Drive and will carry his iconic diamond and gemstone jewelry for both men and women.

Tiffany Opens Two New Stores

Tiffany & Co. opened a store in Barcelona this month, making it its second location in Spain. It’s first boutique in the country opened in Madrid during the fourth quarter of 2008. The brand will also open a new location in Jacksonville, Florida, this week, making it the 82nd shop in the U.S.

Fortunoff Returns With Jewelry Website

Fortunoff jewelry has made a comeback with a new website, FortunoffJewelry.com. The site offers a “sneak peek” for the Christmas season and the Long Island-based retail brand plans to expand their inventory in the new year.

Faberge Unveils Le Carnet de Bal Collection

Faberge unveiled their all-white-diamond “Le Carnet de Bal” collection at a preview during the celebration of Russian Week in London. The jewelry line commemorates the splendor of bygone Russian winter celebrations that were a pivotal feature of St. Petersburg society at the turn of the 19th century. The winter-themed pieces are priced up to $1 million.

Hong Kong Jeweler Looks to Expand

Hong Kong based jeweler, Luk Fook Holdings International, plans to raise up to $132.6 million through a top-up share placement. The proceeds will be used to expand factories and open new stores in China, Hong Kong, Macau and Singapore. The jewelry chain reported a 69.7 percent increase in net profit this year.

Brinks Operations to Resume at BRU

Brinks Diamond and Jewellery Services (BDJS) will resume operations at Brussels Zaventem Airport after the government approved its handling license. The company is awaiting signed approval from King Albert II before it can restart its cash-in-transit road transportation between Antwerp and Brussels and vault handling at the airport.

STATS

Australia Imports & Exports

Diamond production in Australia for three months ending September 2010 rose 6 percent to 2.471 million carats and rough diamond exports rose to 2.65 million from only 675,000 during the same quarter of 2009. By value, diamond exports rose 58 percent to $91 million and exports of gemstones other than diamonds rose 22 percent to $10.8 million. Imports of diamonds fell 4 percent to $104 million.

Botswana Exports

Botswana’s diamond exports in October rose approximately 64 percent year on year to $307.9 million. Exports have increased by about 44 percent to $2.47 billion during the first 10 months of the year. The bank’s data is a representative sample of the company’s full diamond trade and is sourced from the Diamond Trading Company Botswana, two of 16 manufacturing units in the country and the Central Statistics Office. The data include rough and polished exports.

MINING

Firestone Placement to Raise $20M

Firestone Diamonds has conditionally placed 52 million new ordinary shares of 20-pence with institutional and other investors at a price of 25-pence "per placing share" to raise $20.3 million. Proceeds would enable financing an "accelerated development" of the main pipe at Liqhobong in Lesotho in 2011.

ALROSA Projects 2011 Profit +74% to $334M

ALROSA projected its rough production for 2011 would be at 34.438 million carats. Core product sales are expected to increase 3.2 percent to $3.526 billion, with $3.366 billion from rough sales and $160 million from polished sales. The mining company’s projected profit for 2011 is expected to rise 74 percent to $334 million up from an anticipated profit of $191 million in 2010.

Namakwa Diamonds Raises $55M in Share Placement

Namakwa Diamonds raised $55 million in a public offering, which will enable the company to further invest in its Lesotho Koa mine and settle its debt commitments. Namakwa will invest $37 million from the share placement in Koa, covering its full capital requirements for the first phase of development. The remaining $15 million will be used to extinguish its debt.

ECONWATCH

For the week ending Dec. 9

Dec. 9 Dec. 2 Chng.
$1 = Euro 0.754 0.759 -0.005
$1 = Rupee 45.19 45.00 0.2
$1 = Israel Shekel 3.63 3.66 -0.03
$1 = Rand 6.87 6.89 -0.02
$1 = Canadian Dollar 1.00 1.00 0.00

Precious Metals
Gold $1,386.80 $1,384.40 $2.40
Platinum $1,673.00 $1,710.00 -$37.00

Stock Indexes Chng.
BSE 19,242.36 19,992.70 -750.34 -3.8%
Dow Jones 11,370.06 11,362.41 7.65 0.1%
FTSE 5,807.96 5,767.56 40.40 0.7%
Hang Seng 23,171.80 23,448.78 -276.98 -1.2%
S&P 500 1,233.00 1,221.53 11.47 0.9%
Yahoo! Jewelry 948.63 1,030.10 -81.47 -7.9%

USA
Birks & Mayors $1.47 $1.34 $0.13 9.7%
Blue Nile $55.22 $50.40 $4.82 9.6%
Charles & Colvard $2.57 $2.77 -$0.20 -7.2%
DGSE Companies $4.15 $3.95 $0.20 5.1%
Fuqi Intl. $6.29 $6.21 $0.08 1.3%
JCPenney $34.18 $34.48 -$0.30 -0.9%
Kohls $54.18 $55.03 -$0.85 -1.5%
LJ Intl. $3.88 $3.86 $0.02 0.5%
Macys $25.40 $25.54 -$0.14 -0.5%
Man Sang $2.98 $3.00 -$0.02 -0.7%
Movado Group $16.65 $14.95 $1.70 11.4%
Nordstrom $42.10 $42.11 -$0.01 0.0%
Saks $11.63 $11.47 $0.16 1.4%
Signet $41.19 $40.56 $0.63 1.6%
Sothebys $43.11 $41.89 $1.22 2.9%
Tiffany $62.60 $63.17 -$0.57 -0.9%
Walmart $54.41 $54.75 -$0.34 -0.6%
Zale $3.26 $3.04 $0.22 7.2%

EUROPE
Bulgari €7.65 €7.68 -€0.03 -0.4%
Bijou Brigitte €107.96 €105.52 €2.44 2.3%
Damiani €0.87 €0.86 €0.01 1.2%
LVMH €120.70 €122.20 -€1.50 -1.2%
PPR €124.80 €127.50 -€2.70 -2.1%
Richemont CHF 55.45 CHF 56.95 -CHF 1.50 -2.6%
Swatch Group CHF 414.40 CHF 418.80 -CHF 4.40 -1.1%
Theo Fennell (pence) 48.00 43.97 4.03 9.2%

INDIA (rupee)
Classic Diamond 15.95 18.40 -2.45 -13.3%
Gitanjali Gems 178.00 269.05 -91.05 -33.8%
Goldiam Intl. 40.85 42.75 -1.90 -4.4%
Rajesh Exports 111.85 123.05 -11.20 -9.1%
Ren. Jewellery 74.85 79.15 -4.30 -5.4%
Su-Raj Diamonds 49.80 61.35 -11.55 -18.8%
Titan 3,354.25 3,788.85 -434.60 -11.5%
Zodiac JRD 24.90 26.85 -1.95 -7.3%
Suashish Diamonds 151.00 176.85 -25.85 -14.6%

NEW ZEALAND
Michael Hill NZD 0.82 NZD 0.82 NZD 0.00 0.0%

MINING STOCKS
CANADA
Harry Winston CAD 14.59 CAD 14.04 CAD 0.55 3.9%
Lucara Diamond CAD 0.95 CAD 1.02 -CAD 0.07 -6.9%
Mountain Province CAD 5.17 CAD 5.00 CAD 0.17 3.4%
Peregrine Diamonds CAD 2.74 CAD 2.65 CAD 0.09 3.4%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.0%
Shore Gold CAD 0.82 CAD 0.77 CAD 0.05 6.5%
Stornoway Diamond CAD 0.64 CAD 0.71 -CAD 0.07 -9.9%
True North Gems CAD 0.16 CAD 0.13 CAD 0.03 23.1%
UK (pence)
African Diamonds 39.00 40.68 -1.7 -4.1%
Anglo American 2,993.54 2,999.50 -6.0 -0.2%
BHP Billiton 2,462.48 2,450.00 12.5 0.5%
Firestone Diamonds 26.75 25.00 1.8 7.0%
Gem Diamonds 252.75 227.25 25.5 11.2%
Gemfields 17.73 17.00 0.7 4.3%
Mwana Africa 10.50 9.49 1.0 10.6%
Namakwa Diamonds 51.00 44.00 7.0 15.9%
Petra Diamonds 118.25 109.50 8.8 8.0%
Rio Tinto plc 4,381.50 4,415.00 -33.5 -0.8%
Stellar Diamonds 6.32 6.10 0.2 3.6%

RAPAPORT NEWS SERVICE | DEC. 17, 2010 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Mining Stats

Rapaport Weekly Market Comment Dec. 17, 2010  

Polished suppliers hold firm on prices as buyers confront shortages for select goods. DTC sight estimated at $420M with rough prices stable. BHP Billiton prices estimated +2%. U.S. jewelry price index (CPI) +3.9% in Nov. to record high. Sotheby’s NY sells $53.2M with emerald-cut, 27.19ct, D, IF diamond pendant necklace selling for $3.7M ($134,847/ct.). U.S. Oct. polished imports +42% to $1.9B, polished exports +36% to $1.3B. Israel’s Nov. polished exports +4% to $550M. E. Oppenheimer & Sons sells 8% of its stake in Anglo American for $100M. Rockwell Diamonds CEO John Bristow resigns.

RapNet Data: Dec. 16

Diamonds 751,413
Value $4,823,635,351
Carats 835,952
Average Discount -31.18%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

December
13-16
Mon-Thu

Rapaport Melee Auction
New York
Over 34,000 carats.
Tel. 1-212-354-9100
auctions@rapaport.com

Dec-Jan
27-6
Mon-Thu

Rapaport Melee & Single Stone Auction
Mumbai, India
Diamonds in all shapes, sizes and qualities.
auctions@rapaport.com

QUOTE OF THE WEEK:
Selling luxury items like Rolex watches, fine certified diamonds and Mikimoto pearls is not the usual high street sales job. I sit down with customers over tea, coffee or champagne to discuss what they want. Its like being a personal shopper. You have to win their trust because you have a big responsibility to get it right.

Sharon Lee | saleswoman with Winsor Bishop, Norwich, UK

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

DTC Dec. Sight Estimated at $420M

The Diamond Trading Company (DTC) December sight had an estimated value of $420 million as prices and assortments remained relatively stable. Ex-plan, or goods not included in the original intentions to offer (ITOs), was supplied mainly to Indian sightholders, which boosted the sight value. Sightholders suggested that demand for rough is being stimulated by the Indian market and are concerned that rough prices will increase in 2011.

Denials Follow Leaked Documents

Previously unpublished government documents from 2008 and posted by WikiLeaks, allegedly quoting correspondences from U.S. ambassador James McGee, implicated Zimbabwe’s First Lady Grace Mugabe in the illicit diamond trade. Mugabe has since filed suit against Zimbabwe’s The Standard newspaper for reporting the leaked cables and her lawyers called the claims false and scandalous The same documents also alleged that Ernie Blom (pictured) had been dealing rough diamonds out of the Marange. Blom issued a statement calling the claims hearsay and denied that he had been involved with illegal trading activity.

Statements published also allegedly linked diamond smuggling in Zimbabwe to other members of President Robert Mugabes family and to Gideon Gono, the central bank governor. Mugabe and members of his family, along with Gono, are currently on the U.S. sanctions list. Documents suggested that these diamonds were being shipped to Dubai for sale.

Cote d’Ivoire Stalemate Continues

Political uncertainty continues in Cote d’Ivoire following a runoff election in which both presidential candidates have claimed victory. Incumbent President Laurent Gbagbo and President-elect Alassane Ouattara reportedly have loyal military members ready to act. The U.N. meanwhile has called for calm and asked Gbagbo to resign his post peacefully after the governing body confirmed the polls favored Ouattara. Nonetheless, sporadic fighting has broken out in the capitol leaving at least seven dead.

U.S. Jewelry Inflation Hits Record High

The consumer price index (CPI) for jewelry in the U.S. rose 3.9 percent to a record 166.57 points in November. The CPI was about four points higher than October. The November reading marked the 34th consecutive month for which the jewelry CPI registered more than 150 points and the seventh month this year that it topped 160 points.

Rapaport Weekly Broadcast

WATCH NOW: Sotheby’s New York sale of Magnificent Jewels realized a total of $53,228,590 for 452 lots which included the single owner collection “Jewels from the Estate of William B. Deitrich,” making it the highest total ever for a Sotheby’s jewelry sale in New York. The top lot, was a diamond pendant by Tiffany & Co., showcasing a 27.19-carat DIF diamond, which sold for $3,666,500. All of the top 10 lots sold for over $1 million view the video to see more.

RETAIL & WHOLESALE

U.S. Online Retail Sales +12%

Online retail sales in the U.S. continued a 12 percent rate of growth this past week, according to comScore, with the latest tally of sales from November 1 through December 12 at $23.82 billion. Online sales during the most recent week reached $5.31 billion. Sales on “Green Monday,” December 13, hit $954 million.

U.S. Dpt. Store Sales +2% in November

U.S. department store sales for November rose 1.5 percent to $15.7 billion, as adjusted for seasonal variation but not for price changes. Retail trade sales rose 8.1 percent.

Roberto Coin Opens Two U.S. Boutiques

Roberto Coin opened two new boutiques in the U.S. in time for Christmas shopping. One store was opened in Park City, Utah, this month and another opened in Charleston, South Carolina. The jeweler now has a total of seven locations in the U.S. and 13 worldwide.

Diamond Sales Prominent on eBay India

According to the third edition of the eBay India Census, Delhi is the most active part of India on the auction website. The most popular items bought by residents were diamond rings, mobile handsets, pen drives, gemstones and watches.

Zale Weighs Selling Piercing Pagoda

Insiders from Zale leaked to Bloomberg News that the retailer is exploring the sale of its Piercing Pagoda kiosk business to focus on fine jewelry operations. There are about 680 Piercing Pagoda kiosks in malls across the U.S.

Rio Tinto Partners With Firestone Diamond

Rio Tinto’s Argyle Pink Diamonds business unit selected manufacturer Firestone Diamond as its partner in India. Firestone has previously acquired pink and blue diamonds from the Argyle mine and recently sold the Golconda Lotus Necklace, comprising a collection of 34 Argyle pink diamonds, for $3.6 million.

GENERAL

UN Members Show Unity Against Blood Diamonds

The U.N. General Assembly unanimously agreed to improve efforts against the trading of illcit diamonds just before the Democratic Republic of the Congo takes over Kimberley Process chairmanship January 1. Israel brought forward the measure to strengthen the commitment by all U.N. member states to halt the use of the diamond trade to fund armed conflicts across Africa.

The Kimberley Process has yet to reach a consensus on just how Zimbabwe may proceed with rough diamond exports.

Red Flag Rule Enforcement Begins Dec. 31

According to the Jewelers Vigilance Committee (JVC), the FTC’s Red Flags Rule, a federal law that requires covered companies to implement an identity theft prevention program, will be fully enforceable on December 31, 2010. JVC has been following the Rule, which requires companies that provide branded credit cards or in-house credit accounts for consumers to create a program to detect and prevent identity theft.

FTC Revises Guides for Platinum

The Federal Trade Commission (FTC) revised the platinum section of the Guides for the Jewelry, Precious Metal and Pewter Industries to reflect the use of base metal alloys in platinum jewelry. The edited Guides address how to mark and describe “platinum/base metal alloys” which contain between 50 percent and 85 percent platinum, the Jewelers Vigilance Committee (JVC) said today. The FTC declined to issue detailed guidance on products containing platinum plating or coatings. Check out the guides.

Sri Lankas Gems Sector Grows 20%

Sri Lanka reported annual growth of 21 percent for its gem, diamond and jewelry sector, during the first six months of fiscal year 2011. Revenue from the sector rose to $197 million from $163 million in 2009. The countrys National Gem & Jewellery Authority (NGJA) partnered with the Sri Lanka Gem & Jewellery Association to establish a new lab, Lanka Gemological Laboratory (Pvt) Ltd. The new space would have the capacity to issue internationally recognized testing reports.

Vietnam Jewelry Week Shines

Vietnam Jewelry Week 2010 will conclude December 19 and reportedly displayed 150,000 new designs in gold, diamond, pearls, precious stone jewelry and watches from 12 countries and territories.

KGJS Concludes with Record Attendance

Kerala’s third annual jewelry trade fair, KGJS 2010, concluded in Cochin, India, after a record high footfall observed during the show. More than 200 exhibitors showcased their goods to 10,000 trade visitors. KGJS 2011 is scheduled for December 2 to 4 in Cochin.

India to Setup Training Institutes in Africa

India plans to set up 19 training institutes across Africa, as part of an agreement reached at the first India-Africa Forum Summit that took place in 2008. Indian Diamond Institute Surat is one of the groups implementing training programs and will open the India Africa Diamond Institute, which will be a diamond center in Botswana.

STATS

U.S. Imports & Exports

Figures are rounded Oct. $Mil Chng. YTD $Mil Chng.
Polished imports $1,900 42% $15,200 51%
Polished exports $1,250 36% $11,500 47%
Net imports $650 56% $3,700 68%

Rough imports $57 56% $407 79%
Rough exports $55 111% $261 60%
Net imports $2 (80%) $146 125%

Net diamond acct. $657 53% $3,800 67%

MINING

Bristow Resigns from Rockwell Diamonds

John Bristow has resigned from his post as president and chief executive officer (CEO) of Rockwell Diamonds. The board is in discussions with Dr. Bristow, who remains as a director in the company, to provide consulting services to Rockwell to maintain continuity during the transition period of finding a replacement. No reasons were provided for his departure.

Debswana Launches Jwaneng Cut-8 Project

Debswana launched the cut-8 project at the Jwaneng mine. The construction phase of the project is approximately 20 percent complete and is scheduled to be finished at the end of 2011. The cut-8 project is expected to extend operations at Jwaneng by eight years to 2025 and ensure an additional 102 million carats from the mine. Debswana expects to invest up to $3 billion in the project during the next 15 years but the investment could total more than $15 billion over the life of the mine.

Gemfields Emerald Auction Nets $20M

Gemfields International’s rough emerald auction, which was held in Johannesburg, offered 870,000 carats and sold 750,000 carats of mainly higher quality emerald. The sale fetched $19.6 million, or about $26 per carat. The emeralds sold at the auction achieved an average per carat price increase of some 180 percent higher than Gemfields July auction in London

Petra Increases Stake in Koffiefontein Mine

Petra Diamonds increased its interest in the Koffiefontein mine in South Africa to 74 percent. The mining company acquired an additional 4 percent stake from its black economic empowerment (BEE) partners at Koffiefontein, Re-Teng Diamonds (Pty) Limited. The interests in the mine are now Petra with 74 percent and its BEE partners with a 26 percent stake.

Stornoway Adds $5M Loss in 2Q

Stornoway Diamond Corporation incurred a loss of $5 million during second quarter and has now accumulated deficit of $143.8 million during its exploration stage. Stornoway also entered into an agreement with Diaquem Inc. to acquire full interest in the Renard diamond project. Diaquem will become a significant shareholder of Stornoway under the terms, and will receive a direct royalty interest on future diamond production.

Stornoway secured a credit agreement with Societe Generale in respect to future project debt financing of a minimum of $100 million. Upon closing of the acquisition, which is subject to shareholder approval, Stornoway will have acquired sole ownership of Renard. A syndicate of underwriters led by RBC Capital Markets Ltd. also agreed to purchase, on a bought deal basis, 57.4 million common shares of Stornoway at a price of 61-cents per common share for aggregate gross proceeds of $35 million.

Stellars Rough Sales +260%, Narrows Loss

Stellar Diamonds reported revenue from rough sales rose 260 percent to $2.1 million during the first nine months of its fiscal year, and it narrowed its reported loss to $5.6 million from $9.6 million. The junior explorer increased production 37 percent at the Mandala mine to 48,052 carats and the projects sales tripled to $1.8 million. Production at the Bomboko mine rose to 3,920 carats from only 620 carats sales rose to $356,000 from $50,000.

Firestone Gaborone Tender Nets Nearly $2M

Firestone Diamonds completed its first diamond tender in Gaborone, Botswana, and sold 14,673 carats for approximately $1.6 million. The mining company sold 12,510 carats from its Liqhobong main pipe at an average price of $98 per carat, which was 14 percent higher than the valuation. There were 2,162 carats sold from BK11 with an average price of $177 per carat, which was inline with valuation. Firestone Diamonds plans nine diamond tenders in 2011.

ECONWATCH

For the week ending Dec. 16

Dec. 16 Dec. 9 Chng.
$1 = Euro 0.755 0.754 0.001
$1 = Rupee 45.44 45.19 0.3
$1 = Israel Shekel 3.60 3.63 -0.03
$1 = Rand 6.85 6.87 -0.02
$1 = Canadian Dollar 1.00 1.00 0.00

Precious Metals
Gold $1,369.50 $1,386.80 -$17.30
Platinum $1,696.00 $1,673.00 $23.00

Stock Indexes Chng.
BSE 19,864.85 19,242.36 622.49 3.2%
Dow Jones 11,499.25 11,370.06 129.19 1.1%
FTSE 5,881.12 5,807.96 73.16 1.3%
Hang Seng 22,668.78 23,171.80 -503.02 -2.2%
S&P 500 1,242.87 1,233.00 9.87 0.8%
Yahoo! Jewelry 1,001.64 948.63 53.01 5.6%

USA
Birks & Mayors $1.49 $1.47 $0.02 1.4%
Blue Nile $55.08 $55.22 -$0.14 -0.3%
Charles & Colvard $2.79 $2.57 $0.22 8.6%
DGSE Companies $4.26 $4.15 $0.11 2.7%
Fuqi Intl. $6.45 $6.29 $0.16 2.5%
JCPenney $32.85 $34.18 -$1.33 -3.9%
Kohls $54.22 $54.18 $0.04 0.1%
LJ Intl. $4.04 $3.88 $0.16 4.1%
Macys $25.73 $25.40 $0.33 1.3%
Man Sang $2.95 $2.98 -$0.03 -1.0%
Movado Group $15.92 $16.65 -$0.73 -4.4%
Nordstrom $42.32 $42.10 $0.22 0.5%
Saks $11.67 $11.63 $0.04 0.3%
Signet $43.22 $41.19 $2.03 4.9%
Sothebys $46.25 $43.11 $3.14 7.3%
Tiffany $64.61 $62.60 $2.01 3.2%
Walmart $54.63 $54.41 $0.22 0.4%
Zale $3.50 $3.26 $0.24 7.4%

EUROPE
Bulgari €8.23 €7.65 €0.58 7.6%
Bijou Brigitte €107.80 €107.96 -€0.16 -0.1%
Damiani €0.82 €0.87 -€0.05 -5.7%
LVMH €123.55 €120.70 €2.85 2.4%
PPR €125.25 €124.80 €0.45 0.4%
Richemont CHF 55.90 CHF 55.45 CHF 0.45 0.8%
Swatch Group CHF 424.00 CHF 414.40 CHF 9.60 2.3%
Theo Fennell (pence) 52.40 48.00 4.40 9.2%

INDIA (rupee)
Classic Diamond 16.75 15.95 0.80 5.0%
Gitanjali Gems 210.90 178.00 32.90 18.5%
Goldiam Intl. 40.55 40.85 -0.30 -0.7%
Rajesh Exports 120.50 111.85 8.65 7.7%
Ren. Jewellery 76.60 74.85 1.75 2.3%
Su-Raj Diamonds 53.50 49.80 3.70 7.4%
Titan 3,407.45 3,354.25 53.20 1.6%
Zodiac JRD 24.35 24.90 -0.55 -2.2%
Suashish Diamonds 152.90 151.00 1.90 1.3%

NEW ZEALAND
Michael Hill NZD 0.85 NZD 0.82 NZD 0.03 3.7%

MINING STOCKS
CANADA
Harry Winston CAD 11.51 CAD 14.59 -CAD 3.08 -21.1%
Lucara Diamond CAD 0.90 CAD 0.95 -CAD 0.05 -5.3%
Mountain Province CAD 5.32 CAD 5.17 CAD 0.15 2.9%
Peregrine Diamonds CAD 2.41 CAD 2.74 -CAD 0.33 -12.0%
Rockwell Diamonds CAD 0.06 CAD 0.06 CAD 0.00 0.0%
Shore Gold CAD 0.83 CAD 0.82 CAD 0.01 1.2%
Stornoway Diamond CAD 0.63 CAD 0.64 -CAD 0.01 -1.6%
True North Gems CAD 0.15 CAD 0.16 -CAD 0.01 -6.3%
UK (pence)
African Diamonds 38.60 39.00 -0.4 -1.0%
Anglo American 3,123.50 2,993.54 130.0 4.3%
BHP Billiton 2,505.00 2,462.48 42.5 1.7%
Firestone Diamonds 26.28 26.75 -0.5 -1.8%
Gem Diamonds 257.25 252.75 4.5 1.8%
Gemfields 17.25 17.73 -0.5 -2.7%
Mwana Africa 10.11 10.50 -0.4 -3.7%
Namakwa Diamonds 53.00 51.00 2.0 3.9%
Petra Diamonds 127.00 118.25 8.8 7.4%
Rio Tinto plc 4,393.32 4,381.50 11.8 0.3%
Stellar Diamonds 7.95 6.32 1.6 25.8%

INDIA MARKET REPORT

Rapaport Weekly Market Comment Dec. 24, 2010

U.S. holiday jewelry sales +2.6%, according to MasterCard Advisors’ SpendingPulse while comScore reports jewelry website traffic soars. Polished trading firm as Far East prepares for Chinese New Year buying season. ALROSA to sell 50% minus one share in Severalmaz mining unit to Rio Tinto for $250M. Belgium’s Nov. polished exports +28% to $950M, rough imports +26% to $919M. India’s Nov polished exports +19% to $1.6B, rough imports -14% to $779M. Debswana appoints Jim Gowans managing director. Zimbabwe President Robert Mugabe calls elections in 2011 amidst talk of nationalizing diamond mines. Freddy Hanard to retire as CEO of AWDC, Ari Epstein takes post Jan. 1.

RapNet Data: Dec. 23

Diamonds 728,674
Value $4,809,775,113
Carats 819,205
Average Discount -31.15%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

Dec-Jan
27-6
Mon-Thu

Rapaport Melee Auction
December 27-January 5
Mumbai & Surat

Rapaport Single Stone Auction
January 3-6
Mumbai
Diamonds in all shapes, sizes and qualities

Tel. +91-22-6627-2618
E-mail: auctions@rapaport.com

QUOTE OF THE WEEK:
Even though the pace of recovery in the U.S. is still pretty muted, viewed from the point of view of our own businesses, the diamond business has traditionally been a late-cycle performer, if you like. So in the U.S., its still a struggle, its improving, but its still nowhere near where it was in the pre-crisis times. On the other hand, sales in Asia have been nothing short of spectacular. So obviously, we would expect that when the U.S. economy does get back on its feet again properly, and assuming that nothing goes wrong to seriously interrupt the flow of improvement in the Far East, then it should be a very exciting diamond market indeed.

Robert Gannicott | Harry Winston Diamond Corp.

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

RETAIL & WHOLESALE

Rapaport Weekly Broadcast

WATCH NOW: Data from Gallup, ShopperTrak and MasterCard Advisors SpendingPulse indicate single-digit increases for Christmas retail sales so far. Online sales continue to show double-digit growth.

Online Retail Sales Maintain 12% Increase

Online retail sales from November 1 through December 19 in the U.S. have increased 12 percent to $28.36 billion, according to comScore, with growth holding steady since Thanksgiving weekend. The most recent week had online sales of $5.5 billion, an increase of 14 percent versus the same week in 2009. The final shopping weekend before Christmas reached $900 million in retail e-commerce spending, a 17 percent jump versus last year.

Jewelry Website Traffic Jumps in Nov.

According to comScore’s Media Metrix rank of the top 50 U.S. web properties this November, more than 22 million consumers visited websites promoting jewelry and/or luxury goods, a 36 percent increase compared with October. Coupon sites were the top overall ranking category and jewelry, luxury goods and accessories sites were the fastest growing retail subcategory.

United Brands Asia Forms

United Brands Worldwide formed United Brands Asia, which will focus on expanding China’s retail jewelry, diamond and precious metals markets. The company is based in the U.S. and Hong Kong and will specialize in marketing.

Christie’s Reports Record Watch Sales

Christie’s International reported that their fine and rare watch auctions realized $91.2 million in total sales in 2010— the highest annual total ever achieved for watches at the auction house. Every sale hosted in Dubai, Hong Kong, Geneva and New York achieved sell-through rates about 90 percent by value, according to Christies.

De Beers Shifts Focus to Forevermark

De Beers is making strategic changes for its U.S. marketing in 2011 to focus on Forevermark. The Diamond Promotion Service and Diamond Information Center will cease to exist. However, JWT will continue to provide creative geared to promoting the Forevermark. An office for Forevermark U.S., Inc., a subsidiary of De Beers Global Forevermark, has been established in Stamford, Connecticut. The company is still in the exploratory stages of the brand and how it will be promoted in the U.S.

Tiffany Opens at Beverly Center LA

Tiffany & Co. opened a boutique the Beverly Center Mall, located in west Los Angeles this week. It is the second location in the area to open this year.

John Hardy Opens First Boutique

John Hardy will open its first brick-and-mortar location in Jakarta. The flagship store will have Bali-inspired décor and will carry the brand’s full collection plus select pieces from the Cinta collection.

Kristall to Receive $131M in Diamonds

Kristall expects to receive about $131 million worth of diamonds from state reserves to double its capital. The diamond cutting company experienced a shortfall in 2009, which exposed risk, and 80 percent of its assets had been described only as non-financial holdings.

GENERAL

Gowans to Manage Debswana

De Beers and Debswana appointed Jim Gowans as managing director. Since February 2010, Gowans has been responsible for the diamond mining portfolio as the chief operating and technical officer of the De Beers Group. Gowans will hold the position for three years, focusing on maximizing the value of Debswana’s resources.

Sandeep Shah Joins Hoover & Strong

Hoover & Strong appointed Sandeep Shah as the companys new diamond manager. Shah has more than 15 years of international diamond buying and grading experience.

Hanard Prepares to Retire from AWDC

Freddy J. Hanard, chief executive of the Antwerp World Diamond Centre (AWDC), will be retiring from his post on December 31 after four years in the position. Ari Epstein, who currently serves as deputy chief of AWDC and head of the Antwerp Diamond Office, will be Hanard’s successor.

Clashes in Cote d’Ivoire Continue

Concerns for a peaceful resolution in Cote d’Ivoire have deepened as violence intensifies. At the heart of the nation’s troubles, former President Laurent Gbagbo refuses to step down following the election of President Alassane Ouattara. Gbagbo has ordered U.N. peacekeepers to leave the country. The U.S. and the E.U. have placed a travel ban on Gbagbo and his top aides while France told its citizens to leave. The U.N. reported that 173 civilians have been killed in armed conflict this week.

STATS

Belgium Imports & Exports

For November 2010

Figures rounded $Mil %Chng. YTD $Mil %Chng

Polished exports $950 28% $10,100 28%
Polished imports $906 29% $9,520 30%
Net exports $44 16% $562 2%

Rough imports $919 26% $8,760 49%
Rough exports $833 1% $9,850 50%
Net imports $86 ($1,090) 65%

Net diamond acct. ($43) $1,652 32%

India Imports & Exports

For November 2010

Figures rounded $Mil %Chng. YTD $Mil %Chng

Polished exports $1,590 19% $20,850 68%
Polished imports $596 -34% $12,600 88%
Net exports $989 127% $8,250 22%

Rough imports $773 -14% $10,100 67%
Rough exports $55 -15% $825 29%
Net imports $724 -13% $9,260 72%

Net diamond acct. $217 ($1,010)

MINING

Zim to Revoke ACR Claims

Zimbabwe’s mines minister Obert Mpofu vowed to revoke mineral claims held by African Consolidated Resources (ACR), stating these had been fraudulently acquired. ACR’s Andrew Cranswick denied the assertion and will continue to defend the claims in the Marange fields as it has now for two years. Meanwhile, Zimbabwe expects to direct all rough diamond sales through its Minerals Marketing Corporation of Zimbabwe (MMCZ). The U.S. and E.U. have listed MMCZ on its list of sanctioned companies.

Given that the Kimberley Process (KP) has not yet reached a consensus on the exports of Marange goods, the Diamond Trading Company (DTC) urged its sightholders to avoid accepting or trading those stones. The United Arab Emirates (UAE) also told traders that they would allow Marange rough until an agreement was reached. The KP begins new leadership January 1, as the Democratic Republic of the Congo takes over chairmanship from Israel.

Indigenous Group Declines De Beers

The indigenous community Kitchenuhmaykoosib Inninuwug told De Beers Canada that they will not allow any mining on their land as currently proposed at Big Trout Lake, about 600 kilometers north of Thunder Bay, Ontario. The community gave the mining giant a list of issues that must be addressed before any operations ensue, including the fact that aboriginal and treaty rights must be respected and the groups own indigenous laws must be followed.

ALROSA to Sell Stake in Sveralmaz to Rio Tinto

ALROSA will reportedly discuss a deal with Rio Tinto on December 28, according to newspaper Vedomosti, to pay $250 million for 50 percent minus one share in Sveralmaz. Rio Tinto was also said to have agreed to invest $135 million in infrastructure in order to reach projected capacity of two million carats by 2015.

Lucara Completes Acquisition

Lucara Diamonds completed the acquisition of African Diamonds (AFD), and has acquired all issued and outstanding shares of AFD on the basis of 0.80 of a common share of Lucara for each AFD common share. The mining company holds full interest in the AK6 project, located in the Orapa/Letlhakane kimberlite district of Botswana.

Shear Minerals to Change Corp. Name

Shear Minerals Ltd. will trade on a consolidated basis of one new common share for every 10 shares beginning December 30 in Toronto. The company will also change its name to Shear Diamonds Ltd., but the ticker remains the same (SRM:TSXV). Shear purchased the Jericho diamond mine after its former operator filed bankruptcy and plans to begin drilling in second quarter 2011, but it will take approximately one year to reopen the mine.

ECONWATCH

For the week ending Dec. 23

Dec. 23 Dec. 16 Chng.
$1 = Euro 0.763 0.755 0.008
$1 = Rupee 45.12 45.44 -0.3
$1 = Israel Shekel 3.59 3.60 -0.01
$1 = Rand 6.75 6.85 -0.10
$1 = Canadian Dollar 1.01 1.00 0.01

Precious Metals
Gold $1,380.00 $1,369.50 $10.50
Platinum $1,713.00 $1,696.00 $17.00

Stock Indexes Chng.
BSE 19,982.88 19,864.85 118.03 0.6%
Dow Jones 11,573.49 11,499.25 74.24 0.6%
FTSE 5,996.07 5,881.12 114.95 2.0%
Hang Seng 22,902.97 22,668.78 234.19 1.0%
S&P 500 1,256.77 1,242.87 13.90 1.1%
Yahoo! Jewelry 1,019.77 1,001.64 18.13 1.8%

USA
Birks & Mayors $1.40 $1.49 -$0.09 -6.0%
Blue Nile $56.08 $55.08 $1.00 1.8%
Charles & Colvard $2.88 $2.79 $0.09 3.2%
DGSE Companies $4.48 $4.26 $0.22 5.2%
Fuqi Intl. $6.51 $6.45 $0.06 0.9%
JCPenney $32.49 $32.85 -$0.36 -1.1%
Kohls $53.70 $54.22 -$0.52 -1.0%
LJ Intl. $3.89 $4.04 -$0.15 -3.7%
Macys $25.16 $25.73 -$0.57 -2.2%
Man Sang $2.95 $2.95 $0.00 0.0%
Movado Group $15.91 $15.92 -$0.01 -0.1%
Nordstrom $42.78 $42.32 $0.46 1.1%
Saks $11.01 $11.67 -$0.66 -5.7%
Signet $43.07 $43.22 -$0.15 -0.3%
Sothebys $45.57 $46.25 -$0.68 -1.5%
Tiffany $64.22 $64.61 -$0.39 -0.6%
Walmart $53.58 $54.63 -$1.05 -1.9%
Zale $4.11 $3.50 $0.61 17.4%

EUROPE
Bulgari €8.36 €8.23 €0.13 1.6%
Bijou Brigitte €106.65 €107.80 -€1.15 -1.1%
Damiani €0.82 €0.82 €0.00 0.0%
LVMH €127.35 €123.55 €3.80 3.1%
PPR €121.60 €125.25 -€3.65 -2.9%
Richemont CHF 57.00 CHF 55.90 CHF 1.10 2.0%
Swatch Group CHF 425.00 CHF 424.00 CHF 1.00 0.2%
Theo Fennell (pence) 58.00 52.40 5.60 10.7%

INDIA (rupee)
Classic Diamond 17.00 16.75 0.25 1.5%
Gitanjali Gems 197.55 210.90 -13.35 -6.3%
Goldiam Intl. 41.40 40.55 0.85 2.1%
Rajesh Exports 121.00 120.50 0.50 0.4%
Ren. Jewellery 77.40 76.60 0.80 1.0%
Su-Raj Diamonds 54.05 53.50 0.55 1.0%
Titan 3,335.25 3,407.45 -72.20 -2.1%
Zodiac JRD 24.50 24.35 0.15 0.6%
Suashish Diamonds 164.45 152.90 11.55 7.6%

NEW ZEALAND
Michael Hill NZD 0.87 NZD 0.85 NZD 0.02 2.4%

MINING STOCKS
CANADA
Harry Winston CAD 11.50 CAD 11.51 -CAD 0.01 -0.1%
Lucara Diamond CAD 0.95 CAD 0.90 CAD 0.05 5.6%
Mountain Province CAD 5.83 CAD 5.32 CAD 0.51 9.6%
Peregrine Diamonds CAD 2.61 CAD 2.41 CAD 0.20 8.3%
Rockwell Diamonds CAD 0.07 CAD 0.06 CAD 0.01 16.7%
Shore Gold CAD 0.91 CAD 0.83 CAD 0.08 9.6%
Stornoway Diamond CAD 0.62 CAD 0.63 -CAD 0.01 -1.6%
True North Gems CAD 0.16 CAD 0.15 CAD 0.01 6.7%
UK (pence)
African Diamonds 39.16 38.60 0.6 1.5%
Anglo American 3,323.00 3,123.50 199.5 6.4%
BHP Billiton 2,587.50 2,505.00 82.5 3.3%
Firestone Diamonds 30.50 26.28 4.2 16.1%
Gem Diamonds 261.00 257.25 3.8 1.5%
Gemfields 16.25 17.25 -1.0 -5.8%
Mwana Africa 9.76 10.11 -0.4 -3.5%
Namakwa Diamonds 49.00 53.00 -4.0 -7.5%
Petra Diamonds 135.75 127.00 8.8 6.9%
Rio Tinto plc 4,535.00 4,393.32 141.7 3.2%
Stellar Diamonds 9.00 7.95 1.1 13.2%

Rapaport Weekly Market Comment Jan. 7, 2011

Polished diamond prices up 10.3% in 2010 following decline of 7.6% in 2009. RapNet 2010 prices for 0.50 ct. +4.1%, 1 ct. +12.3% and 3 ct. +24.6%. Prices at Rapaport Melee Auctions +57%. Rapaport estimates average rough prices +21% in 2010. Fine quality- to- mid quality 0.50-1.10 ct. polished and cheap Indian goods in short supply with strong demand for melee goods. U.S. holiday sales meets expectations and dealers hoping positive demand will extend to Far East for Chinese New Year (Feb. 3). Cutters concerned mining companies may raise rough prices following strong 4Q rough sales. Israel’s 2010 polished exports +48% to $5.8B, rough imports +51% to $3.8B. Investors start 2011 bullish as Dow reaches two-year high (11,722.89). De Beers Botswana CEO Neo Daniel Moroka recovering after lion attack.

RapNet Data: Jan. 6

Diamonds 704,445
Value $4,614,107,785
Carats 791,059
Average Discount -30.93%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

January
15-20
Sat-Thu
Rapaport at Vicenzaoro First
Fiera de Vicenza
Vicenza, Italy

Contact: Francesco Lopresti
+39-02-40047274
francesco.lopresti@diamonds.net

Jan-Feb
30-1
Sun-Tue
Rapaport at Centurion Jewelry
Tuscon, Arizona

Contact: John Colletta
+1-702-893-9400
john.colletta@diamonds.net

Jan-Feb
31-4
Mon-Fri

Rapaport Melee & Single Stone Auction
New York
Diamonds in all shapes, sizes and qualities
Tel. 1-212-354-9100

E-mail: auctions@rapaport.com

QUOTE OF THE WEEK:
The turbulence is here to stay. The .S.] consumer is still very sensitive to even slight fluctuations in prices ecause] the consumer is still looking for deals.

David Bassuk | AlixPartners

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Maguwu Says KP Must Stand Up to Zim

Diamond rights activist Farai Maguwu told SW Radio Africa that in order for any progress to be made, the Kimberley Process (KP) must stand up to Zimbabwe. The KP has yet to reach a consensus regarding the status of Marange diamond exports, even though the government contended that exports were approved. Maguwu also said that the definition of a blood diamond is outdated and needs to be changed to reflect current human rights issues. He added that the Democratic Republic of the Congo acting as new KP chair was a “disaster” for the diamond industry, because that country was not compliant with trade regulations.

Crisis Continues in Cote dIvoire

The U.N. will seek 2,000 additional troops in Côte d’Ivoire where the outgoing president refuses to step down. The additional enforcement would replace peacekeepers from the UN Mission in Liberia. The U.N. certified Alassane Ouattara as the nations new president, however former President Laurent Gbagbo has held on to the post and demanded that the U.N. leave. Tensions remain very high and violence between supporters of both men has left many dead. Liberia meanwhile is reported to be aiding 22,000 refugees who have fled Cote dIvoire for their own safety.

Rapaport Weekly Broadcast

WATCH NOW: Diamond industry shareholders should remember 2010 as a banner year for retail, manufacturing and mining stocks. There were far more stock gainers than there were losers, with a number of supply-side stocks rising by triple-digits between January and December.

RETAIL & WHOLESALE

Holiday Retail Sales Rise in December

So far much of December’s retail sales figures point to low single-digit increases, but when November’s sales are taken into account, MasterCard Advisors SpendingPulse reported that Christmas season retail enjoyed 5.5 percent growth. SpendingPulse added that jewelry sales rose by 10.4 percent overall with a 5.9 percent increase in online sales. According to the International Council of Shopping Centers (ICSC), December same-store sales rose 3.1 percent and total holiday sales increased by 3.8 percent.

Online retail sales for the Christmas season rose 12 percent to $32.6 billion, according to comScore. The jewelry and watch category experienced an increase of 11 percent.

Observing jewelry buying habits, a survey by JCOC found that 25 percent of shoppers purchased jewelry during the Christmas season, up from 22 percent on 2009. Twenty-six percent of shoppers preferred department stores for their purchases, which was down from 31 percent in 2009. Twenty-three percent favored local independent jewelers, up from 15 percent one year ago. The Internet and national jewelry chains each attracted a 16 percent share. Of the 251 respondents who bought jewelry, the price-point spread was narrow with the majority of shoppers spending less than $300, and 31 percent spending between $301 and $1,000. Nine percent of the shoppers surveyed spent between $1,001 and $5,000, according to JCOC.

December Retail Summary

BJ’s sales rose 7.3 percent to $1.2 billion, while same-store sales grew 1.4 percent.
Costco sales jumped 11 percent to $9.1 billion and same-store sales increased 3 percent.
JCPenney sales grew 2.3 percent to $2.9 billion, while same-store sales rose 3.7 percent.
Kohl’s sales increased 5.9 percent to $3.1 billion, while same-store sales grew 3.9 percent.
Macy’s sales jumped 4.5 percent to $4.6 billion, and same-store sales grew 3.9 percent.
Neiman Marcus sales increased 4.9 percent to $583 million, while same-store sales rose 4.7 percent.
Nordstrom’s sales jumped 12 percent to $1.3 billion, while same-store sales grew 8.4 percent.
Saks sales increased 9.8 percent to $432 million and same-store sales rose 12 percent.

Jewelry Sales +3% in 3Q10

American Express Business Insights reported that U.S. jewelry sales rose 3 percent in the third quarter of 2010. The average jewelry receipt rose 6 percent, but the transaction volume for jewelry fell 3 percent.

Macy’s Plans to Expand E-Commerce

Macys will invest a great deal into expanding its macys.com and bloomingdales.com support networks in the coming two years. The company expects to add nearly 3,500 full-time, part-time and seasonal holiday associates in support of the ecommerce channel along with a new fulfillment center near Martinsburg, West Virginia, and the expansion of a fulfillment center near Portland, Tennessee. In the first 10 months of fiscal 2010, online sales at Macys rose 29 percent, up from about 20 percent in fiscal 2009 and 29 percent in fiscal 2008.

Tesco Launches Cash-for-Gold Plan

Tescos Gold Exchange launched a buy-back program online and in at least 15 stores across the U.K. Customers can mail their unwanted gold jewelry to Tesco and if the offer is accepted, the mega retailer will issue direct payments to the customer’s bank account. Tesco said it hopes that its ethical practices will raise industry standards for the cash-for-gold business model.

Damas Adds Six Collections for Winter Season

Damas revealed six new collections for the winter season all of which are available at Damas stores in the Middle East. New lines include the Oceanique, featuring pearls; Heart to Heart tennis bracelets and DLight, which consists of customized gold charm bracelets and funky, casual bracelets.

Helzberg Diamonds Sued for Deception

A customer of Helzberg Diamonds sued the retailer for deception, alleging that the Helzberg Diamond Collection was supposed to have used distinctive hearts and arrows, but had instead used lower priced princess-cut diamonds to boost profits. The suit claimed class-action status, which if allowed could represent customers who bought the pieces between 2005 and 2010.

580 Earns Foreign Trade Zone Designation

The U.S. Department of Commerce has designated 580 Fifth Avenue as a Foreign Trade Zone (FTZ). Tenants in the building, after their own FTZ approvals, will then be able to import and export goods under the special duty-free provisions.

Ratings Agencies Weigh Credit Facilities

CRISIL gave a BB+/P4+ rating to the bank facilities of Lalchand Jewellers Pvt. Ltd. of India, which reflected a weak financial risk profile and vulnerability to its operating margin and volatile gold prices. CRISIL also gave a rating of BB/Stable to the bank facilities of Emaar Diamonds, which reflected the company’s weak financial risk profile and long working capital cycle.

Rating agency CARE increased the long-term ratings for the bank facilities of Arshit Gems to CARE D from CARE B.

ICRA reaffirmed an A3 rating on fund based limits of Choice Diamond. The rating affirmed the companys conservative capital structure, a diversified clientele and factors in the improvement of its financial profile.

C. Mahendra Exports Closes IPO

C. Mahendra Exports received more than 41.7 million bids against 15 million shares issued by the close of its initial public offering (IPO) on January 6. The company fixed the price band of INR 95 to INR 110 per share. Proceeds will be used for setting up facilities for diamond processing and jewelry manufacturing as well as opening retail outlets and building brand awareness.

STATS

Israel Imports & Exports

For December 2010

Figures rounded $Mil %Chng. YTD $Mil %Chng

Polished exports $439 37% $5,830 48%
Polished imports $486 39% $4,220 68%
Net exports ($47) (59%) $1,610 13%

Rough imports $366 7% $3,750 51%
Rough exports $178 3% $3,060 62%
Net imports $188 11% $695 15%

Net diamond acct. ($235) (18%) $915 2%

MINING

IGE Considers Withdrawal from Angola

IGE Resources AB might withdraw from the Luxinge diamond project in Angola. The company said that diamond recoveries and grades have not met expectations that were established earlier by bulk samples. There are also on-site operational inefficiencies.

On an unrelated note, IGE arranged a $15 million standby credit facility with Waterton Global Value L.P. The facility provides increased financial flexibility for the junior diamond explorer and helps secure financing for mining activity in southern Africa.

Zambia Awards License to Tamarisk

Tamarisk Investments, a subsidiary of Paragon Diamonds Limited and International Diamond Consultants, was granted an exploration license in eastern Zambia. The license covers approximately 862.3 square kilometers and is known to host 14 lamproite pipes within a known diamondiferous region. The license expires in November 2012, at which time it could be automatically renewed by Tamarisk for two-year periods subject to appropriate submissions and relinquishment of 50 percent of the license area each time.

ECONWATCH

For the week ending Jan. 6

Jan. 6 Dec. 30 Chng.
$1 = Euro 0.768 0.752 0.016
$1 = Rupee 45.46 44.99 0.5
$1 = Israel Shekel 3.55 3.55 0.00
$1 = Rand 6.80 6.62 0.18
$1 = Canadian Dollar 0.99 1.00 -0.01

Precious Metals
Gold $1,371.30 $1,404.90 -$33.60
Platinum $1,730.00 $1,746.00 -$16.00

Stock Indexes Chng.
BSE 20,184.74 20,389.07 -204.33 -1.0%
Dow Jones 11,697.31 11,569.71 127.60 1.1%
FTSE 6,019.51 5,971.01 48.50 0.8%
Hang Seng 23,786.30 22,999.34 786.96 3.4%
S&P 500 1,273.85 1,257.88 15.97 1.3%
Yahoo! Jewelry 1,072.96 1,090.16 -17.20 -1.6%

USA
Birks & Mayors $1.34 $1.35 -$0.01 -0.7%
Blue Nile $56.18 $58.26 -$2.08 -3.6%
Charles & Colvard $2.88 $2.90 -$0.02 -0.7%
DGSE Companies $4.50 $4.45 $0.05 1.1%
Fuqi Intl. $6.28 $6.43 -$0.15 -2.3%
JCPenney $32.06 $32.40 -$0.34 -1.0%
Kohls $52.23 $54.50 -$2.27 -4.2%
LJ Intl. $3.85 $3.85 $0.00 0.0%
Macys $23.97 $25.27 -$1.30 -5.1%
Man Sang $3.00 $3.09 -$0.09 -2.9%
Movado Group $15.22 $16.75 -$1.53 -9.1%
Nordstrom $42.94 $42.49 $0.45 1.1%
Saks $11.50 $10.73 $0.77 7.2%
Signet $42.11 $43.14 -$1.03 -2.4%
Sothebys $45.05 $45.22 -$0.17 -0.4%
Tiffany $60.19 $63.14 -$2.95 -4.7%
Walmart $53.96 $54.03 -$0.07 -0.1%
Zale $3.98 $4.38 -$0.40 -9.1%

EUROPE
Bulgari €7.82 €8.09 -€0.27 -3.3%
Bijou Brigitte €116.58 €109.25 €7.33 6.7%
Damiani €0.86 €0.82 €0.04 4.9%
LVMH €121.90 €123.35 -€1.45 -1.2%
PPR €117.90 €119.90 -€2.00 -1.7%
Richemont CHF 54.70 CHF 55.00 -CHF 0.30 -0.5%
Swatch Group CHF 403.80 CHF 416.80 -CHF 13.00 -3.1%
Theo Fennell (pence) 59.40 66.78 -7.38 -11.1%

INDIA (rupee)
Classic Diamond 18.10 17.35 0.75 4.3%
Gitanjali Gems 206.05 212.60 -6.55 -3.1%
Goldiam Intl. 43.20 41.70 1.50 3.6%
Rajesh Exports 134.25 135.70 -1.45 -1.1%
Ren. Jewellery 75.80 77.70 -1.90 -2.4%
Su-Raj Diamonds 56.30 56.10 0.20 0.4%
Titan 3,574.00 3,534.40 39.60 1.1%
Zodiac JRD 24.40 25.25 -0.85 -3.4%
Suashish Diamonds 174.00 170.60 3.40 2.0%

NEW ZEALAND
Michael Hill NZD 0.89 NZD 0.88 NZD 0.01 1.1%

MINING STOCKS
CANADA
Harry Winston CAD 11.55 CAD 11.59 -CAD 0.04 -0.3%
Lucara Diamond CAD 1.00 CAD 0.94 CAD 0.06 6.4%
Mountain Province CAD 6.20 CAD 6.54 -CAD 0.34 -5.2%
Peregrine Diamonds CAD 2.57 CAD 2.50 CAD 0.07 2.8%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.0%
Shore Gold CAD 0.89 CAD 0.90 -CAD 0.01 -1.1%
Stornoway Diamond CAD 0.61 CAD 0.61 CAD 0.00 0.0%
True North Gems CAD 0.17 CAD 0.15 CAD 0.02 13.3%
UK (pence)
African Diamonds 39.16 39.16 0.0 0.0%
Anglo American 3,309.50 3,386.00 -76.5 -2.3%
BHP Billiton 2,517.00 2,614.00 -97.0 -3.7%
Firestone Diamonds 33.00 30.86 2.1 6.9%
Gem Diamonds 261.25 261.00 0.3 0.1%
Gemfields 15.98 15.40 0.6 3.8%
Mwana Africa 9.82 10.00 -0.2 -1.8%
Namakwa Diamonds 52.25 49.00 3.3 6.6%
Petra Diamonds 131.50 136.50 -5.0 -3.7%
Rio Tinto plc 4,488.11 4,584.00 -95.9 -2.1%
Stellar Diamonds 11.00 12.44 -1.4 -11.6%

RAPAPORT NEWS SERVICE | JAN. 14, 2011 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Mining Stats

Rapaport Weekly Market Comment Jan. 14, 2011  

Cutters anticipating De Beers rough price hike after Christmas season exceeds expectations. We caution trade not to speculate. Rough price levels are too high relative to polished. Higher rough prices do not automatically translate into higher polished prices and may not be sustainable. Polished markets stable as Far East retailers complete Chinese New Year buying. Petra Diamonds FY1H revenues +44% to $90M, production -5% to 582,102 cts. Holiday Sales (Nov-Dec): Tiffany +11% to $889M, Zale Corp. +8% to $533M, Signet +6%. Top 2010 Israeli polished exporter Leviev - L.L.D. +52% to $366M.

RapNet Data: Jan. 13

Diamonds 713,772
Value $4,690,140,558
Carats 802,872
Average Discount -30.90%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

January
15-20
Sat-Thu
Rapaport at Vicenzaoro First
Fiera de Vicenza
Vicenza, Italy

Contact: Francesco Lopresti
+39-02-40047274
francesco.lopresti@diamonds.net

Jan-Feb
30-6
Sun-Sun
Rapaport at Tucson
Centurion Jewelry Show - Jan. 30-Feb. 1
AGTA GemFair - Feb. 1-6

Contact: John Colletta
+1-702-893-9400
john.colletta@diamonds.net

Jan-Feb
31-4
Mon-Fri

Rapaport Melee & Single Stone Auction
New York
Diamonds in all shapes, sizes and qualities
Tel. 1-212-354-9100

E-mail: auctions@rapaport.com

QUOTE OF THE WEEK:
We have shifted RR Jewellery operations from India to Dubai, because most of our wholesale customers are in Dubai. We are ready to pay [approximately $2 million / AED 7 million] for one showroom in the Gold Souk. Business is smooth n Duba and I need not wait long to open new branches here. In India, there are many hiccups and bureaucratic hurdles.

Neesarg Ramani | BRR Jewellery

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

RETAIL & WHOLESALE

Rapaport Weekly Broadcast

WATCH NOW: Vendors at the National Retail Federation (NRF) Big Show in Manhattan were prepared to help retailers jump start growth plans in 2011. Three of them offered some immediate solutions to help arm small jewelers with tools to grow market share. Esri, which offers targeted demographic data, helps jewelers plan campaigns and inventory purchases. Multimedia Plus provides digital training solutions that also can be produced to serve client needs online. Meanwhile, ForeSee Results discusses the explosion of mobile retail shopping trends and warns retailers to address these needs head on to stay competitive.

Online Dec. Jewelry Sales +19%

According to IBM Coremetrics, online retail sales in December increased 12 percent, with the average online order rising to $190.42 from $171.06 in 2009. More importantly, the group observed that online jewelry sales jumped 18.5 percent.

Tiffany Christmas Sales +11%

Tiffany & Co. reported that sales for the months of November and December combined rose 11 percent to $888.5 million. Same-store sales rose 8 percent. Tiffany’s flagship store in Manhattan underperformed, but sales in the Americas rose 9 percent to $484.8 million; Asia Pacific sales grew 23 percent to $138.9 million and Europe sales increased 13 percent to $114.9 million.

On an unrelated note, Tiffany president James E. Quinn, plans to retire in early 2012 and the company has begun an executive search for his replacement.

Signet Group Christmas Season Sales +6%

Signet Group sales for the nine weeks that ended January 1, rose 6 percent while same-store sales rose 8.1 percent. Signet didn’t provide sale totals. At constant exchange rates, total sales rose 6.9 percent. U.S. division sales rose 10.4 percent and same-store sales rose by 11.7 percent. But in the U.K., Signet reported that total sales fell 5.3 percent on a constant exchange rate and same-store sales slipped 4.2 percent, citing long term severe weather conditions.

Zale Corp. Holiday Sales Rise 8%

Zale reported that Christmas season sales rose 8 percent to $533.1 million. Comparable store sales increased 8.5 percent year on year during the November and December period.

Theo Fennell December Sales -7%

Same-store sales at Theo Fennell in December fell 7 percent, due to several weeks of snowy weather in the U.K. before Christmas. The luxury jeweler warned investors that the companys sales and profits would miss expectations come March.

Take the Lead When Negotiating Real Estate

Stevan Buxbaum, president of Buxbaum Jewelry Advisors, explains how retailers can, and must, manage their real estate overhead in this new economy. Foremost, independent jewelers must not fear downsizing if the result improves margins elsewhere. Secondly, he advises independents to negotiate leases in their favor while carefully monitoring the future of their space as it relates to local demographics. Read the full article.

Credit Ratings: Kama Schachter and Osia Gems

CRISIL assigned an A- rating with a "stable" outlook for the Rs. 710 million cash credit facility of Kama Schachter Jewelry in India. The agency also assigned a P2+ rating on a Rs. 40.8 million standby line of credit. CRISIL reaffirmed the manufacturers A-/stable rating on an existing Rs. 30 million term loan as well as its P2+ rating on an export packing credit of Rs. 208.7 million, which was reduced from Rs. 340 million.

Ratings agency ICRA reaffirmed an A4+ rating to the Rs 33 crore fund-based bank facilities of Osia Private Gems Limited, which exports cut and polished diamonds with associate company Chirag Diamonds. The ratings continue to factor the exporters “modest scale of operations.”

E.F.D. Partners With Sheffield for Bridal Collection

Israeli diamond manufacturer E.F.D. Ltd. partnered with designer Anna Sheffield to launch a bridal and commitment jewelry collection planned for launch in second quarter. It will at first be available only at www.AnnaSheffield.com and then later on at Sheffield’s Manhattan showroom.

Robbins Diamonds Closes Two Stores

Robbins Diamonds is closing two of its locations — one on Eighth and Walnut streets in Philadelphia and one in Allentown — due to the “bad economy,” said owner Jerry Robbins.

Helzberg Renews Agreement with Epsilon

Helzberg Diamonds renewed its agreement with Epsilon, a marketing solutions provider, who will continue to support multichannel direct marketing efforts focusing on acquiring new customers, reactivation, retention and cross-selling. Epsilon will also continue hosting and managing the jewelers customer marketing database.

Byng Named Managing Director of Asprey

Paddy Byng has been named managing director of Asprey Holdings Limited and will assume this global role February 1. Byng was most recently the chief executive of Smythson.

U.K. Diamond Heist Nets Nearly $2M

Diamonds and jewelry worth $1.6 million (GBP 1 million) were stolen from the house of real estate tycoon Sir Lawrie Barratt. Balaclava-clad thieves overrode security, stormed the house, threatened staff, and made-off with 1,159 diamonds and rubies. Missing jewelry include a ruby and diamond suite of jewelry, diamond necklace and bracelet, ruby and diamond earrings and a diamond ring. Authorities urged the trade to be on the lookout for these items and call police immediately at 03.456.043.043 ext 69191.

STATS

Israel Polished Exports

Top 25 polished diamond exporters for 2010. Only the companies that agreed to publish export results were included in Israels list.

Company Name Rank $Mil Chng%
L.L.D. Diamonds 1 $366 52%
Leo Schachter 2 $359 67%
M.I.D. House of Diamonds 3 $160 122%
A.A. Rachminov 4 $123
E.Z. Diamonds 5 $97 185%
Yoshfe Diamonds 6 $91 214%
Ofer Mizrahi Diamonds 7 $76 55%
Sahar Atid Diamonds 8 $71 11%
Arabov Group 9 $70 106%
Niru Diamonds 10 $68 19%
Rosy Blue 11 $67 91%
A. Schwartz & Sons Diamonds 12 $55 -10%
Kuperman Brothers Diamonds 13 $50 19%
Royal Gem 14 $49 63%
B.L.I.D. International 15 $47 81%
Segaldiam Ltd 16 $45
Eran Diamonds-Yehuda Sayag 17 $44 42%
Beta Diamonds 18 $42 45%
Jogdiam 19 $39
Waldman Diamonds 20 $36 33%
Yoram Dvash Diamonds 21 $33
Eshed Diam 22 $32 14%
Katz Chaim Precious Stones 23 $31
A.B.T. Diamonds 24 $28
Shlomo Bichaci Diamonds 25 $27

MINING

Paz Asks Bourses to Address Conflict Diamonds

World Federation of Diamond Bourses (WFDB) president Avi Paz is asking each bourse member to hold a meeting to discuss how to protect the industry’s reputation when it comes to conflict diamonds. He suggested that the rules and regulations of the WFDB be reiterated and redistributed to all members, as well as the rules and regulations of diamond imports and exports in each country.

Petra Diamonds FY1H Revenues Rise 44%

Petra Diamonds’ gross revenue from its mining operations rose 44 percent to $90 million during the six months that ended December 31, boosted by strong rough diamond prices during the year. However, production fell 5.2 percent to 582,102 carats due to a planned suspension of production from the main pit of the Williamson mine while the existing plant is being replenished, and the planned depletion of the high-grade tailings resource at Cullinan mine.

Lucara Provides Mothae Sample Update

Lucara Diamond announced that a completion of sample C8A — from the Mothae diamond mine in Lesotho — produced 1,439.85 carats and resulted in a sample grade of 2.93 carats per hundred tonnes (cpht). Lucara recovered a 48.54-carat, high quality diamond from the initial processing of sample C9A, where mining and processing will continue through February.

Shear Diamonds Appoints Two VPs

Shear Diamonds Ltd., formerly Shear Minerals, appointed Jennifer Burgess as the mining companys new vice president (VP) of exploration and Fred Mason as its new VP of operations. Burgess has 18 years of experience in the mining industry, while Mason has 27.

ECONWATCH

For the week ending Jan. 13

Jan. 13 Jan. 6 Chng.
$1 = Euro 0.749 0.768 -0.019
$1 = Rupee 45.18 45.46 -0.3
$1 = Israel Shekel 3.57 3.55 0.02
$1 = Rand 6.82 6.80 0.02
$1 = Canadian Dollar 0.99 0.99 0.00

Precious Metals
Gold $1,373.70 $1,371.30 $2.40
Platinum $1,803.00 $1,730.00 $73.00

Stock Indexes Chng.
BSE 19,182.82 20,184.74 -1,001.92 -5.0%
Dow Jones 11,731.90 11,697.31 34.59 0.3%
FTSE 6,023.88 6,019.51 4.37 0.1%
Hang Seng 24,238.98 23,786.30 452.68 1.9%
S&P 500 1,283.76 1,273.85 9.91 0.8%
Yahoo! Jewelry 1,060.09 1,072.96 -12.87 -1.2%

USA
Birks & Mayors $1.52 $1.34 $0.18 13.4%
Blue Nile $58.09 $56.18 $1.91 3.4%
Charles & Colvard $2.65 $2.88 -$0.23 -8.0%
DGSE Companies $4.57 $4.50 $0.07 1.6%
Fuqi Intl. $5.66 $6.28 -$0.62 -9.9%
JCPenney $30.61 $32.06 -$1.45 -4.5%
Kohls $51.48 $52.23 -$0.75 -1.4%
LJ Intl. $3.91 $3.85 $0.06 1.6%
Macys $23.00 $23.97 -$0.97 -4.0%
Man Sang $3.00 $3.00 $0.00 0.0%
Movado Group $15.47 $15.22 $0.25 1.6%
Nordstrom $41.60 $42.94 -$1.34 -3.1%
Saks $11.55 $11.50 $0.05 0.4%
Signet $42.40 $42.11 $0.29 0.7%
Sothebys $44.83 $45.05 -$0.22 -0.5%
Tiffany $59.87 $60.19 -$0.32 -0.5%
Walmart $54.74 $53.96 $0.78 1.4%
Zale $5.73 $3.98 $1.75 44.0%

EUROPE
Bulgari €7.96 €7.82 €0.14 1.8%
Bijou Brigitte €106.63 €116.58 -€9.95 -8.5%
Damiani €0.94 €0.86 €0.08 9.3%
LVMH €118.85 €121.90 -€3.05 -2.5%
PPR €119.15 €117.90 €1.25 1.1%
Richemont CHF 57.25 CHF 54.70 CHF 2.55 4.7%
Swatch Group CHF 404.00 CHF 403.80 CHF 0.20 0.0%
Theo Fennell (pence) 61.00 59.40 1.60 2.7%

INDIA (rupee)
Classic Diamond 16.70 18.10 -1.40 -7.7%
Gitanjali Gems 189.50 206.05 -16.55 -8.0%
Goldiam Intl. 41.20 43.20 -2.00 -4.6%
Rajesh Exports 132.75 134.25 -1.50 -1.1%
Ren. Jewellery 75.65 75.80 -0.15 -0.2%
Su-Raj Diamonds 51.25 56.30 -5.05 -9.0%
Titan 3,415.80 3,574.00 -158.20 -4.4%
Zodiac JRD 24.00 24.40 -0.40 -1.6%
Suashish Diamonds 158.10 174.00 -15.90 -9.1%

NEW ZEALAND
Michael Hill NZD 0.91 NZD 0.89 NZD 0.02 2.2%

MINING STOCKS
CANADA
Harry Winston CAD 10.94 CAD 11.55 -CAD 0.61 -5.3%
Lucara Diamond CAD 0.95 CAD 1.00 -CAD 0.05 -5.0%
Mountain Province CAD 6.26 CAD 6.20 CAD 0.06 1.0%
Peregrine Diamonds CAD 2.52 CAD 2.57 -CAD 0.05 -1.9%
Rockwell Diamonds CAD 0.07 CAD 0.07 CAD 0.00 0.0%
Shore Gold CAD 0.88 CAD 0.89 -CAD 0.01 -1.1%
Stornoway Diamond CAD 0.62 CAD 0.61 CAD 0.01 1.6%
True North Gems CAD 0.17 CAD 0.17 CAD 0.00 0.0%
UK (pence)
African Diamonds 39.16 39.16 0.0 0.0%
Anglo American 3,410.00 3,309.50 100.5 3.0%
BHP Billiton 2,522.50 2,517.00 5.5 0.2%
Firestone Diamonds 32.50 33.00 -0.5 -1.5%
Gem Diamonds 262.50 261.25 1.3 0.5%
Gemfields 15.50 15.98 -0.5 -3.0%
Mwana Africa 11.25 9.82 1.4 14.6%
Namakwa Diamonds 56.46 52.25 4.2 8.1%
Petra Diamonds 165.50 131.50 34.0 25.9%
Rio Tinto plc 4,503.50 4,488.11 15.4 0.3%
Stellar Diamonds 10.05 11.00 -0.9 -8.6%

INDIA MARKET REPORT

Polished and rough trading activity

RAPAPORT NEWS SERVICE | JAN. 21, 2011 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Mining Stats

Rapaport Weekly Market Comment Jan. 21, 2011  

Kimberley Process to approve exports from Zimbabwe’s Marange mines. Several million carats of stockpiled rough diamonds are expected to be released in near future. DTC Jan. sight estimated at $650M with prices stable and boxes trading at high premiums. Strong rough demand in anticipation of possible Feb. price increases. Rio Tinto 4Q production -28% to 3.199M Cts. BHP Billiton FY2Q production -11% to 676,000 Cts. Richemont FY1Q jewelry sales +30% to $1.5B. Lazare Kaplan FY2Q sales +26% to $29M. India’s Dec. polished exports +91% to $2.49B, rough imports +53% to $1.25B. Botswana grants Gope mining license to Gem Diamonds as Kalahari Bushmen file appeal for water rights.

RapNet Data: Jan. 20

Diamonds 697,672
Value $4,562,072,610
Carats 781,797
Average Discount -30.45%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

Jan-Feb
30-6
Sun-Sun
Rapaport at Tucson
Centurion Jewelry Show - Jan. 30-Feb. 1
AGTA GemFair - Feb. 1-6

Jan-Feb
31-4
Mon-Fri

Rapaport Melee & Single Stone Auction
New York
Diamonds in all shapes, sizes and qualities
Tel. 1-212-354-9100

E-mail: auctions@rapaport.com

January
31
Mon
Martin Rapaport Keynote Speech
Centurion Jewelry Show Tucson

January
31
Mon
RapNet Cocktail Event in Antwerp
RapNet Members Only
RSVP to +323 2323300

QUOTE OF THE WEEK:
[Central African Republic (CAR)] miners enduring poverty and a parasitic state are quick to join rebel groups. Meanwhile unchecked criminal networks enable fighters to profit from mining and selling diamonds illegally and continue to prey on civilians. [The Kimberley Process must] send a team to CAR with a special mandate to investigate rebel activity in eastern mining zones and advise on how to ensure exporting companies do not trade diamonds mined or sold by rebel groups.

Ned Dalby | International Crisis Group

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

Polished Diamond Prices +10% in 2010

This past year marked a recovery for the diamond market as consumer demand in India, China and the Far East increased and the U.S. experienced healthy holiday sales. Overall, polished diamond prices and trading volumes have returned to early 2008 pre-recession levels. Certified polished diamonds prices increased 10.3 percent on RapNet, with half carats up 4.1 percent, one carat up 12.3 percent and three carats up 24.6 percent. The globalization of diamond demand and the supply side management of rough diamonds by ALROSA and De Beers also influenced diamond prices. India now dominates diamond production with over 600,000 cutters, easy banking credit and a local jewelry market that is growing at about 25 percent per annum. Read the full report.

Rapaport Weekly Broadcast

WATCH NOW: The U.S. consumer price index (CPI) for jewelry hit a record high in December reflecting long term gains from gold and very strong silver and diamond prices in 2010. Rio Tinto’s diamond production fell 28 percent during its fourth quarter to 3.199 million carats. Lazare Kaplan’s net sales increased 26 percent during its second fiscal quarter to $28.9 million, but first half sales fell 36 percent.

RETAIL & WHOLESALE

U.S. December Department Store Sales -1%

U.S. department store sales in December fell 1.3 percent to $15.42 billion, which reflected weaker performance than the industry as a whole. Retail trade sales meanwhile rose 8.2 percent. The National Retail Federation (NRF) concluded that retail sales for December— minus automobiles, gas stations, and restaurants — rose 5.3 percent unadjusted from one year ago. For the two months of the Christmas shopping season, NRF stated that sales rose 5.7 percent to $462 billion.

Richemont 3Q Jewelry Revenue +30%

Richemont reported that total sales rose 33 percent to $2.81 billion during the third fiscal quarter that ended December 31. At constant exchange rates, sales rose 17 percent in Europe, 42 percent in Asia-Pacific, 17 percent in the Americas, and 3 percent in Japan. Jewelry sales rose 30 percent by actual exchange rates, to $1.5 billion, and increased 20 percent at a constant exchange rate.

Birks & Mayors’ Christmas Season Sales +8%

Birks & Mayors’ net sales during the Christmas season, as measured from October 31 through December 25, rose by 8 percent to $75.5 million. Same-store sales overall rose 4 percent, with a 7 percent increase in comparable store sales for Canada while the figure rose 2 percent for U.S. operations, mostly due to the retailer’s expansion in Canada and the country’s strong currency.

James Avery to Open in Little Rock

James Avery will open a new store in Little Rock, Arkansas, in February, making it the jeweler’s 60th U.S. location. The new store will be located in Midtowne Little Rock. The family-owned jeweler plans to open an average of five to eight new stores annually during the next five years, mostly across the southeastern U.S.

Ultra Diamonds Opens at AIRMALL Cleveland

Ultra Diamonds opened 570 square feet of retail space at the AIRMALL® Cleveland Hopkins International Airport in the main terminal near Concourse B, expanding the jeweler’s presence into the busy airport.

GENERAL

Diamdel Completes 4Q Auction Cycle

Diamdel reported that fourth quarter 2010 rough sales online included 289 lots spanning goods in the -3grainers, 3-8grainers, 2-15 carat and +15 carat size ranges. Nearly 217 companies participated in the bidding and 89 firms won lots. During the second half 2010, Diamdel made available 532 lots at auction, 98 percent of which were sold.

Minnesota Bans Cadmium in Children’s Jewelry

Minnesota has become the first state to officially ban cadmium in childrens jewelry, according to Manufacturing Jewelers & Suppliers of America (MJSA). The ban limits the toxic metal to 75 parts per million (ppm) in any surface coating or accessible substrate of a piece of jewelry. The state law went into effect for manufacturers on products they sell after January 1, and becomes effective for retailers after March 1. A similar law in Illinois will go into effect on July 1 and in California and Connecticut in 2012 and 2014 respectively.

Dubai Pearl Auctions Net Nearly $14M

The Dubai Pearl Exchange (DPE), a subsidiary of Dubai Multi Commodities Centre (DMCC), hosted two pearl auctions — on January 10 through 11 and January 12 through 13 — with total sales worth more than $13.5 million. More than 100 pearl traders from 20 nations attended the auctions.

Daleyot Opens First DTC Sight of the Year

Erez Daleyot, chief executive of DD Manufacturing (DDM), became the first Diamond Trading Company (DTC) sightholder and individual to open a DTC sight. He received the honor after placing the winning bid to open the January sight at a Diamond Empowerment Fund (D.E.F.) auction in London this past November. Daleyot was also treated to a behind-the-scenes tour of the DTC.

Epstein Leads AWDC

Ari Epstein officially assumed the position of chief executive officer of the Antwerp World Diamond Centre (AWDC). Epstein joined the organization in 2005 as director of the diamond office and was AWDC’s deputy CEO for two years. He is a lawyer by training, specializing in international taxation and corporate law.

STATS

India Imports & Exports

For December 2010

Figures rounded Dec. $Mil %Chng. YTD $Mil %Chng

Polished exports $2,490 91% $23,807 60%
Polished imports $2,190 140% $14,732 53%
Net exports $304 22% $9,075 74%

Rough imports $1,250 53% $10,586 62%
Rough exports $241 500% $1,079 57%
Net imports $1,010 31% $9,507 62%

Net diamond acct. ($709) (85%) ($432) (22%)

U.S. Imports & Exports

For November 2010

Figures are rounded Nov. $Mil Chng. YTD $Mil Chng.
Polished imports $1,450 21% $16,610 48%
Polished exports $1,130 19% $12,610 44%
Net imports $316 30% $4,000 60%

Rough imports $54 116% $461 82%
Rough exports $26 400% $287 70%
Net imports $28 47% $174 140%

Net diamond acct. $344 31% $4,180 63%

MINING

BHP 2Q Diamond Production -11%

BHP Billiton reported that diamond production for the second fiscal quarter at Ekati fell 11 percent to 676,000 carats. Production for three months ending December 31, was lower due to a decrease in ore processed and lower average grade. For the first fiscal half of the year, BHP recorded a diamond production drop of 10 percent to 1.379 million carats.

Rockwell Diamonds FY3Q Sales -13%

Rockwell Diamonds reported that revenues fell 13.7 percent year on year to $11.2 million in the third fiscal quarter ending November 30. The company posted a net loss of $1.2 million compared with a profit of $1.5 million. Sales fell despite a strong recovery in rough prices from its South Africa operations, up 23 percent to $1,566 per carat, as the number of carats sold declined by 16 percent to 10.045 million carats.

Gem Diamonds Receives Gope Mining License

Botswana granted Gem Diamonds a mining license to operate the Gope diamond deposit. The license is valid for 25 years while the life of mine is estimated at more than 30 years. Production at Gope is scheduled to launch in 2013, by using a phased approach to constructing the mine, including underground operations.

The region has been at the center of a campaign by Survival International, which claims the government has barred local Kalahari Bushmen from accessing water resources around the mining area. Survival International said this week an appeal hearing to decide whether the Bushmen should have the right to the water was scheduled to begin on Monday.

Lucara Expects Commissioning of AK6 by 4Q

Lucara Diamond stated that commissioning of their AK6 diamond development project in Botswana will commence by the end of this year and full production could be expected in early 2012. The mine is expected to deliver 400,000 carats of high quality diamonds in its first year of operation. Project execution is on target and on budget with commissioning scheduled to start in the fourth quarter.

On an unrelated note, Lucara will carry out a non-brokered private placement of up to an aggregate of 60 million common shares at $1 each. Net proceeds of the private placement will be used towards the development of the AK6 mine and at its Mothae diamond mine in Lesotho. Common shares issued, pursuant to the private placement, will be subject to a four-month hold period.

Damtshaa Mine to Reopen in 2012

Debswana plans to reopen its Damtshaa diamond mine in 2012 and it will operate at full capacity, the company’s public and corporate affairs manager, Esther Kanaimba-Sena, told Business Week. Damtshaa was closed in early 2009 due to the collapse in rough demand along with the company’s other mines — Jwaneng, Orapa and Letlhakane — which were reopened in late 2009

Mountain Province to Study Exploration at Kennady North

Mountain Province Diamonds plans to completed work on its Kennady North Project, which is located immediately to the north and west of the Gahcho Kue diamond project. Kennady North consists of five mining leases and eight mineral claims, an area of approximately 30,374 acres. A desktop study is currently underway to compile and review previous work on Kennady North, which will then enable Mountain Province to fast-track plans.

ECONWATCH

For the week ending Jan. 20

Jan. 20 Jan. 13 Chng.
$1 = Euro 0.743 0.749 -0.006
$1 = Rupee 45.75 45.18 0.6
$1 = Israel Shekel 3.61 3.57 0.04
$1 = Rand 7.07 6.82 0.25
$1 = Canadian Dollar 1.00 0.99 0.01

Precious Metals
Gold $1,345.60 $1,373.70 -$28.10
Platinum $1,809.00 $1,803.00 $6.00

Stock Indexes Chng.
BSE 19,046.54 19,182.82 -136.28 -0.7%
Dow Jones 11,822.87 11,731.90 90.97 0.8%
FTSE 5,867.91 6,023.88 -155.97 -2.6%
Hang Seng 24,003.70 24,238.98 -235.28 -1.0%
S&P 500 1,280.26 1,283.76 -3.50 -0.3%
Yahoo! Jewelry 1,039.35 1,060.09 -20.74 -2.0%

USA
Birks & Mayors $1.40 $1.52 -$0.12 -7.9%
Blue Nile $59.97 $58.09 $1.88 3.2%
Charles & Colvard $2.57 $2.65 -$0.08 -3.0%
DGSE Companies $4.40 $4.57 -$0.17 -3.7%
Fuqi Intl. $5.74 $5.66 $0.08 1.4%
JCPenney $30.11 $30.61 -$0.50 -1.6%
Kohls $51.36 $51.48 -$0.12 -0.2%
LJ Intl. $3.64 $3.91 -$0.27 -6.9%
Macys $23.23 $23.00 $0.23 1.0%
Man Sang $3.86 $3.00 $0.86 28.7%
Movado Group $14.83 $15.47 -$0.64 -4.1%
Nordstrom $41.20 $41.60 -$0.40 -1.0%
Saks $11.61 $11.55 $0.06 0.5%
Signet $42.48 $42.40 $0.08 0.2%
Sothebys $41.64 $44.83 -$3.19 -7.1%
Tiffany $57.70 $59.87 -$2.17 -3.6%
Walmart $56.03 $54.74 $1.29 2.4%
Zale $4.90 $5.73 -$0.83 -14.5%

EUROPE
Bulgari €7.28 €7.96 -€0.68 -8.5%
Bijou Brigitte €106.00 €106.63 -€0.63 -0.6%
Damiani €1.02 €0.94 €0.08 8.5%
LVMH €112.80 €118.85 -€6.05 -5.1%
PPR €114.00 €119.15 -€5.15 -4.3%
Richemont CHF 52.90 CHF 57.25 -CHF 4.35 -7.6%
Swatch Group CHF 374.70 CHF 404.00 -CHF 29.30 -7.3%
Theo Fennell (pence) 59.00 61.00 -2.00 -3.3%

INDIA (rupee)
Classic Diamond 16.25 16.70 -0.45 -2.7%
Gitanjali Gems 204.70 189.50 15.20 8.0%
Goldiam Intl. 38.25 41.20 -2.95 -7.2%
Rajesh Exports 130.95 132.75 -1.80 -1.4%
Ren. Jewellery 71.25 75.65 -4.40 -5.8%
Su-Raj Diamonds 49.95 51.25 -1.30 -2.5%
Titan 3,479.45 3,415.80 63.65 1.9%
Zodiac JRD 23.45 24.00 -0.55 -2.3%
Suashish Diamonds 149.80 158.10 -8.30 -5.2%

NEW ZEALAND
Michael Hill NZD 0.91 NZD 0.91 NZD 0.00 0.0%

MINING STOCKS
CANADA
Harry Winston CAD 11.78 CAD 10.94 CAD 0.84 7.7%
Lucara Diamond CAD 1.09 CAD 0.95 CAD 0.14 14.7%
Mountain Province CAD 5.95 CAD 6.26 -CAD 0.31 -5.0%
Peregrine Diamonds CAD 2.46 CAD 2.52 -CAD 0.06 -2.4%
Rockwell Diamonds CAD 0.06 CAD 0.07 -CAD 0.01 -14.3%
Shore Gold CAD 0.81 CAD 0.88 -CAD 0.07 -8.0%
Stornoway Diamond CAD 0.62 CAD 0.62 CAD 0.00 0.0%
True North Gems CAD 0.16 CAD 0.17 -CAD 0.01 -5.9%
UK (pence)
Anglo American 3,067.00 3,410.00 -343.0 -10.1%
BHP Billiton 2,382.00 2,522.50 -140.5 -5.6%
Firestone Diamonds 34.50 32.50 2.0 6.2%
Gem Diamonds 255.00 262.50 -7.5 -2.9%
Gemfields 15.00 15.50 -0.5 -3.2%
Mwana Africa 10.75 11.25 -0.5 -4.4%
Namakwa Diamonds 61.00 56.46 4.5 8.0%
Petra Diamonds 163.00 165.50 -2.5 -1.5%
Rio Tinto plc 4,237.00 4,503.50 -266.5 -5.9%
Stellar Diamonds 11.50 10.05 1.5 14.4%

RAPAPORT NEWS SERVICE | FEB. 11, 2011 www.rapaport.com | news@rapaport.com

Industry Retail & Wholesale EconWatch India Mining

Rapaport Weekly Market Comment Feb. 11, 2011  

U.S. retailers hoping for strong Valentine’s Day sales this weekend. Polished trading stable as Far East dealers return from vacation. Mining company revenues boosted by high rough prices: Rio Tinto 2010 diamond sales +52% to $682M, diamond profits of $70M vs. loss of $68M in 2009; ENDIAMA’s 2010 sales reach $955M with annual production of 8.5M cts. ALROSA sells $313M in Jan.Blue Nile 4Q sales +12% to $115M, profit +14% to $6M. LVMH 2010 watch & jewelry sales +29% to $1.3B, operating profits +103% to $174M. Shrenuj & Co 3Q sales +17% to $143M, profits +2% to $31M. Mumbai municipality proposes to cut inter-state octroi tax on diamonds from 2% to 0.01% on Apr. 1.

RapNet Data: Feb. 10

Diamonds 698,873
Value $4,616,467,328
Carats 786,096
Average Discount -29.64%

Get Current Price List | Subscribe to Rapaport | Join RapNet

RAPAPORT ANNOUNCEMENTS

March
2-7
Wed-Mon

Rapaport Hong Kong Diamond Auction

Preview Show March 2-3
Hong Kong Diamond Exchange Building

Hong Kong Intl Jewellery Show March 4, 6, 7
2/F Exclusive Showroom – Diamonds, Room S221
Hong Kong Convention and Exhibition Center

Register at www.rapaportauctions.com

QUOTE OF THE WEEK:
Despite the high inflation rate in 2010, the [retail sale increase is still remarkable. It underscores the initial success of Chinas transformation to develop its economy through domestic consumption. However, the long-term result is still uncertain.

Lu Zheng-wei | Industrial Bank

Careers@Rapaport

The Rapaport Group is growing rapidly. If you wish to work with the best and brightest, join us. We have great opportunities for trading managers, gemologists, sales assistants, and entry level positions for our offices in New York, Antwerp, Mumbai, Dubai, and Shanghai. To get on the fast track, email your resume to careers@rapaport.com.

INDUSTRY

ALROSA Sales Reach $313M in Jan.

ALROSA’s January diamond sales totaled $313 million as the company reported a steady demand for rough. The company expects to achieve first quarter sales of approximately $880 million.

Antwerp to Auction the Magnificent Ekati Spirit

BHP Billiton will auction a rough, 78-carat diamond named the ‘Ekati Spirit’ in Antwerp on Valentine’s Day. It could be the "most significant gem-quality diamond" from the Ekati mine, as well as the most valuable stone in the mine’s 13 year history. The company turned to its workforce to name the magnificent stone.

Rapaport Weekly Broadcast

WATCH NOW: The comScore 2010 U.S. Digital Year in Review report noted key online trends for U.S. retailers to monitor and incorporate into their strategy moving forward. Total U.S. retail spending in 2010 rose 10% to $142.5 billion and online jewelry sales rose 11 percent in 2010, according to comScore. Social networks will grow in importance for building brand awareness and mobile technology will continue to become an important tool to online shopping.

RETAIL & WHOLESALE

Blue Nile 4Q Sales +12%, Profit +14%

Blue Niles fourth-quarter sales rose 11.5 percent to $114.8 million year on year, while its cost of sales was up 11 percent to $89.5 million. The companys net income for the fourth quarter rose 13.6 percent to $6.2 million. Gross profit improved by 30 basis points to 22 percent. International sales during the fourth quarter increased by 31 percent to $15.3 million and U.S. sales rose 9 percent to $99.5 million.

The companys full-year results reflected a net sales increase of 10.2 percent to $332.9 million, while its cost of sales was up 10.2 percent to $260.9 million. Blue Niles net income rose 10.5 percent to $14.1 million. Its international sales jumped 30.4 percent to $43.3 million and its U.S. sales edged up 8 percent to $289.6 million.

Tourists Make Dubai Shopping Festival a Success

Tourists from China, India and Russia flocked to the Dubai Shopping Festival. Retailers reported that while shoppers were not spending as much as they had before the recession, their willingness to buy gold and diamond jewelry was pushing sales much higher than one year ago. Initial reports suggested gold and jewelry sales were 75 percent higher while higher-end diamond jewelry sales were up by 15 percent.

Retail Sales +19% During China’s ‘Golden Week’

Retail sales jumped 19 percent during China’s ‘Golden Week’ to $62 billion, according to the government. Dining and retail sectors fared well overall. The Beijing Caishikou Department Store, one of the largest gold and jewelry retailers in Beijing, reported a 96 percent surge in jewelry sales. The Dongan Department Store reported that gold and jewelry sales increased 37 percent.

LVMH 2010 Watch and Jewelry Sales +29%

LVMH Moet Hennessy Louis Vuitton’s 2010 watch and jewelry sales increased 29 percent to $1.34 billion, the strongest growth performance of all categories. Operating profits from the jewelry division doubled to $174 million.Overall, company revenue grew 19 percent to $27.6 billion and profits rose 73 percent to $4.2 billion.

Shrenuj & Co. 3Q Sales Rise 17%

Shrenuj & Co. reported that group sales rose 17 percent year on year to $143.1 million during the companys third fiscal quarter that ended December 31. Net profits grew 2 percent to $30.9 million. Diamond sales increased 19 percent to $102 million, while studded jewelry sales, which include branded and retail sales and intersegment sales, grew 16 percent to $43.3 million.

Argyle Pink Diamonds Debut at Nirav Modi in Mumbai

Argyle Pink Diamonds debuted at the Nirav Modi salon in Mumbai. Modi is the chairman of Firestone Diamond and is an authorized partner of Argyle. Highlighting the launch was a signature piece, The Shalimar Ring, inspired by Laxmi, the Indian Goddess of Wealth, features 4.86-carats of Argyle pink diamonds including its magnificent centerpiece, a 1.25-carat fancy vivid purplish pink round diamond that retails for approximately $2 million.

S.VinodKumar Group Opens New Facility

VinodKumar Group opened its new state-of-the-art diamond manufacturing facility on February 10 in Surat.The new digs include six floors and 125,000 square feet of working space. The new facility will employ 1,500 local artisans and in house training. S.VinodKumar stated that opening the facility strengthens its position in the global marketplace.

Orloff Elected California Jewelers Assoc. President

The California Jewelers Association (CJA) elected James Orloff, of Orloff Jewelers in Fresno as president for 2011. Orloff succeeds Stuart Benjamin of Stuart Benjamin & Co. Jewelry in San Diego as the head of the organization which caters to retail jewelers, suppliers and designers throughout the state.

STATS

Botswana’s Diamond Exports +24% in 4Q10

Botswana’s diamond exports rose 24 percent year on year to $805 million in the fourth quarter of 2010. For the full year, diamond exports increased 39 percent to $3.01 billion.

Sierra Leone’s Rough Exports +28% in 2010

Sierra Leone exported approximately $109 million in rough diamonds during 2010, an increase of 28 percent from 2009, despite a decrease in artisanal diamond mining in the country.

MINING

Rio Tinto’s Diamond Sales +52% in 2010

Rio Tinto’s diamond sales rose 52 percent year on year to $682 million in 2010 spurred by higher rough prices and rising demand from the Far East. Net earnings from diamonds were $70 million for the year, compared with a loss of $68 million in 2009.

Diavik Production +17% in 2010

Rio Tinto reported that production at the Diavik Diamond Mine in Canada’s Northwest Territories reached 6.5 million carats in 2010, a 17 percent increase in output from the previous year. Rio Tinto owns 60 percent of Diavik while Harry Winston Diamond Corporation holds the remaining 40 percent.

Botswana Diamonds Commissions Bulk Sampling Program

Botswana Diamonds has commissioned a $1 million bulk sample on three kimberlites, BK5, AK8 and AK9, in the Orapa region of Botswana.The nine -month project, undertaken on a turnkey basis by Gemcore Sampling of South Africa, could supply its first results of the sample by June.

Jewelers Boycott Bristol Bay Gold Mine

Just in time for Valentines Day, commercial fishermen, residents and 54 leading jewelers are boycotting the proposed Pebble Mine near Bristol Bay in southwest Alaska. If opened, the mine would reportedly generate 10 million tons of toxic waste that would flow into the bay, which houses largest salmon fishery in the world. A large number of jewelers, representing $5.75 billion in sales, have taken a "no gold from Bristol Bay" pledge including Zale, Helzberg, Birks & Mayors and many top brands. Boycotters plan to send a Valentines Day letter to Congress, calling for the protection of Bristol Bay.

ECONWATCH

For the week ending Feb. 9

Feb. 9 Feb. 3 Chng.
$1 = Euro 0.733 0.726 0.007
$1 = Rupee 45.64 45.59 0.0
$1 = Israel Shekel 3.67 3.68 -0.01
$1 = Rand 7.26 7.27 -0.01
$1 = Canadian Dollar 1.00 0.98 0.02

Precious Metals
Gold $1,363.40 $1,352.90 $10.50
Platinum $1,826.00 $1,836.00 -$10.00

Stock Indexes Chng.
BSE 17,463.04 18,449.31 -986.27 -5.3%
Dow Jones 12,229.29 12,062.29 167.00 1.4%
FTSE 6,020.01 5,983.34 36.67 0.6%
Hang Seng 22,708.62 23,908.96 -1,200.34 -5.0%
S&P 500 1,321.87 1,307.10 14.77 1.1%
Yahoo! Jewelry 1,041.29 1,051.37 -10.08 -1.0%

USA
Birks & Mayors $1.31 $1.35 -$0.04 -3.0%
Blue Nile $63.66 $57.13 $6.53 11.4%
Charles & Colvard $3.63 $2.79 $0.84 30.1%
DGSE Companies $4.45 $4.48 -$0.03 -0.7%
Fuqi Intl. $5.10 $5.15 -$0.05 -1.0%
JCPenney $36.00 $30.88 $5.12 16.6%
Kohls $53.00 $51.06 $1.94 3.8%
LJ Intl. $3.51 $3.68 -$0.17 -4.6%
Macys $24.22 $22.24 $1.98 8.9%
Man Sang $4.22 $4.08 $0.14 3.4%
Movado Group $14.71 $14.61 $0.10 0.7%
Nordstrom $45.57 $42.05 $3.52 8.4%
Saks $11.99 $11.10 $0.89 8.0%
Signet $44.06 $43.05 $1.01 2.3%
Sothebys $44.37 $42.22 $2.15 5.1%
Tiffany $63.40 $60.82 $2.58 4.2%
Walmart $55.59 $55.92 -$0.33 -0.6%
Zale $4.61 $4.74 -$0.13 -2.7%

EUROPE
Bulgari €7.71 €7.56 €0.15 2.0%
Bijou Brigitte €101.84 €103.25 -€1.41 -1.4%
Damiani €1.05 €1.03 €0.02 1.9%
LVMH €118.85 €116.90 €1.95 1.7%
PPR €118.25 €116.10 €2.15 1.9%
Richemont CHF 55.25 CHF 52.65 CHF 2.60 4.9%
Swatch Group CHF 413.00 CHF 387.20 CHF 25.80 6.7%
Theo Fennell (pence) 46.00 49.18 -3.18 -6.5%

INDIA (rupee)
Asian Star 1,084.35 1,024.65 59.70 5.8%
Classic Diamond 11.10 14.14 -3.04 -21.5%
C.Mahendra 163.00 170.05 -7.05 -4.1%
Gitanjali Gems 189.80 200.40 -10.60 -5.3%
Goenka Diamond 57.65 62.65 -5.00 -8.0%
Goldiam Intl. 31.35 35.00 -3.65 -10.4%
Rajesh Exports 130.50 131.65 -1.15 -0.9%
Ren. Jewellery 66.85 67.10 -0.25 -0.4%
Shantivijay Jewels 90.05 81.60 8.45 10.4%
Suashish Diamonds 140.25 144.85 -4.60 -3.2%
Su-Raj Diamonds 40.35 45.70 -5.35 -11.7%
Titan 3,093.40 3,595.10 -501.70 -14.0%
Vaibhav Gems 20.05 20.95 -0.90 -4.3%

NEW ZEALAND
Michael Hill NZD 0.89 NZD 0.90 -NZD 0.01 -1.1%

MINING STOCKS
CANADA
Harry Winston CAD 11.72 CAD 12.16 -CAD 0.44 -3.6%
Lucara Diamond CAD 1.16 CAD 1.18 -CAD 0.02 -1.7%
Mountain Province CAD 5.90 CAD 5.82 CAD 0.08 1.4%
Peregrine Diamonds CAD 2.37 CAD 2.35 CAD 0.02 0.9%
Rockwell Diamonds CAD 0.05 CAD 0.05 CAD 0.00 0.0%
Shore Gold CAD 0.82 CAD 0.83 -CAD 0.01 -1.2%
Stornoway Diamond CAD 0.61 CAD 0.58 CAD 0.03 5.2%
True North Gems CAD 0.13 CAD 0.16 -CAD 0.03 -18.8%
UK (pence)
Anglo American 3,308.50 3,240.00 68.5 2.1%
BHP Billiton 2,484.00 2,505.00 -21.0 -0.8%
Firestone Diamonds 35.00 32.31 2.7 8.3%
Gem Diamonds 283.00 276.00 7.0 2.5%
Gemfields 15.20 14.84 0.4 2.4%
Mwana Africa 11.44 11.50 -0.1 -0.5%
Namakwa Diamonds 62.00 61.50 0.5 0.8%
Petra Diamonds 175.00 177.00 -2.0 -1.1%
Rio Tinto plc 4,549.00 4,494.00 55.0 1.2%
Stellar Diamonds 10.30 11.50 -1.2 -10.4%