Rapaport Weekly Market Comment Feb. 15, 2013

Shortages driving rough prices higher with some DTC boxes trading at 5%. Polished prices flat and not supporting rough increases. Triple Ex bringing 5-10% premiums. Steady gold jewelry sales during China’s Golden Week but authorities restrict luxury advertising. Rio Tinto 2012 diamond sales +2% to $741M, loss of $43M. Gitanjali Gems 3Q sales +27% to $810M, profit +34% to $32M. Shrenuj & Co. 3Q sales +60% to $266M, profit +13% to $4M. Blue Nile’s 4Q revenue +21% to $136M, net income +17% to $5M. U.S. Dec. polished imports -13% to $1.4B. Belgium Jan. polished exports +9% to $891M. Hong Kong 2012 polished imports -4% to $17B.

RapNet Data: Feb. 14

Diamonds 935,863
Value $6,059,894,152
Carats 1,032,525
Average Discount -27.44%

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RAPAPORT ANNOUNCEMENTS

February
12-20
Tue-Wed

Rapaport Single Stone Auction

New York & Israel

View details.

Feb-Mar
27-8
Wed-Fri

Rapaport Melee Auction

New York & Hong Kong

View details.

March
5-9
Tue-Sat

Rapaport at HK Intl. Jewelry Show

List your diamonds, company name and booth location on the complimentary RapNet show listings diamond search. Register now.

Visit Rapaport in Hall 3-G, Booth B42

QUOTE OF THE WEEK
Trends in luxury consumption in the U.S. have continued to outperform overall consumer trends. Where some have gone too far is in thinking Middle America is going to be buying luxury.

Antoine Belge | HSBC

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INDUSTRY 	  

Gold Jewelry Demand +4%

Global gold demand reached a record of $236.4 billion in 2012, up 2% year on year, according to the World Gold Council. The fourth quarter experienced the strongest performance as demand rose 6% to $66.2 billion. The value of gold jewelry demand improved 4% during the year to a record $102.6 billion. The average price of gold during 2012 was $1,669 per ounce, up 6% from 2011. By value, annual gold jewelry demand in China rose 6% to $29.3 billion, but it fell 3% to $29.7 billion in India. Gold jewelry demand in Indonesia rose 9% to $1.7 billion and it was up 3% to $7.9 billion in the Middle East. Turkeys gold jewelry demand jumped 7% to $3.7 billion, while Russias demand surged 12% to $4.4 billion. Jewelry demand dropped 2% in the U.S. to $5.8 billion and it fell 7% in Europe to $2.4 billion.

U.S. Jewelry Store Sales Soar

WATCH NOW: ALROSA recovered a 145-carat rough diamond and estimated it would fetch $1 million at auction. U.S. jewelry store sales surged in December and overall they rose 5.7% in 2012, topping $30.7 billion, or the highest value since 2007. Given the market player contraction since 2007 plus a relatively stable CPI, the improved store sales were certainly solid. U.S. jewelry exports surged 12.4%, while jewelry imports declined 1.9%. Watch imports were flat.

India Plans Rough Hub

India will weigh recommendations designed to make the country an international trading hub for rough diamonds. The proposed concept touches upon special import and trading zones, duty-free rules and creating a beneficiation policy among others. The sector and government alike seek clean and responsible diamond trading, and they are committed to the Kimberley Process Certification Scheme.

The task group in charge of the plan conducted an extensive review of issues related to trade facilitation, taxation, fiscal measures and promotional matters that are in line with similar practices elsewhere. Some of the recommendations include setting up a special notified zone for the import and trading of rough diamonds, permission to import cut and polished diamonds duty-free up to the extent of 15% of the average of a companys previous three years’ exports, and reducing the rate of computation of profit under Benign Assessment Procedure (BAP) from 6% to 2.5%.

RETAIL & WHOLESALE 	  

Blue Niles Profit +17%

Blue Niles revenue climbed 21% to $136.1 million for the fourth quarter that ended on December 30. Cost of sales, however, rose 24% to $110.5 million. Income for the quarter increased almost 17% to $4.9 million or 39 cents per share. U.S. engagement sales jumped 31% to $73.6 million, while international sales surged 27% to $20 million. Gross profit for the fourth quarter fell to 18.8% of net sales compared with 20.7% one year earlier. Blue Niles list of new customers rose nearly 8%. Net cash provided by operating activities totaled $34.4 million for the year compared with only $15.4 million in 2011. Non-GAAP free cash flow was $31.9 million compared with $10.1 million for the previous year.

Gitanjalis Profit +34%

Gitanjali Gems Ltd. reported that group sales rose 27% year on year to $809.5 million during its third fiscal quarter that ended on December 31. Profit increased 34% to $32 million. Sales at the company’s diamond business grew 26% to $347.5 million, while jewelry segment sales increased 28% to $479 million. The company recently opened a factory in Jaipur to manufacture jadau, kundan and polki jewelry.

Shrenujs Profit +13%

Shrenuj & Co. Ltd. reported that third quarter group sales rose 60% year on year to $265.9 million for the period that ended on December 31, with a strong performance at its diamond business. Group expenditures rose 62% to $254.2 million, however, net profit still grew 13% to $3.9 million. Diamond sales jumped 93% to $222.9 million, while sales from its studded jewelry business declined 15% to $46.5 million.

Sothebys Jewel Sale Nets $11M

Sothebys New York sale of important jewels garnered $10,535,820 and was 78% sold by lot. The top lot was a diamond ring of 6.46 carats, E, SI1, type IIa and set in platinum that sold to an anonymous buyer for $560,500 or $86,765 per carat, well above estimate. The second and third top lots achieved sales prices far above estimate with a 0.51 carat, VS2 fancy, vivid purplish pink diamond ring by Tiffany & Co. selling for $338,500 and a platinum and diamond bow brooch by Van Cleef & Arpels being sold for $332,500.

Fewer Cite Jewelry as Expendable

STORES Magazine’s February survey, conducted by BIGinsight.com, examined products and services that consumers felt were “untouchable” and “expendable” in 2012 and it tracked the past five years of this sentiment. On average, 53.9% of adults said they cut back on some items and services in 2012, down from more than 76% in 2011. According to 89.1% of respondents, high-end jewelry was expendable in 2012; however, that percentage was down from 92.3% in 2011 and 91% in 2010. Other top expendable items in 2012 included luxury handbags, maid services, clubs and social memberships and high-end cosmetics.

Tiffany Sues Costco for Counterfeiting

Tiffany & Co. sued Costco Wholesale Corporation for trademark infringement, dilution, counterfeiting, unfair competition, injury to business reputation, false and deceptive business practices and false advertising. In November, Tiffany confirmed what it called “Tiffany” diamond engagement rings being promoted and sold at a Costco store in Huntington Beach, California. However, Tiffany found the rings were not Tiffany rings, nor were they manufactured by, licensed by, or otherwise in any way properly associated with the brand. Tiffany charged Costco with leading its shoppers to believe they were purchasing authentic Tiffany products at significant discounts, when in fact, that was simply not true, according to the filing.

GENERAL 	  

Court Dismisses Blood Diamond Libel Suit

Portuguese courts dismissed a libel suit against Rafael Marques and his publisher for "Blood Diamonds: Corruption and Torture in Angola," concluding that the book is protected by free speech laws. The book alleged that Angolan generals own a diamond company and a security firm that carried out killings and the torture of workers in the nations mines.

Mining company Sociedade Mineira do Cuango and security firm Teleservice-Sociedade de Telecomunicacoes, Seguranca e Servicos filed the complaint against Marques and publisher Tinta-da-China after the book was published. President Jose Eduardo dos Santos government is accused of corruption and mismanagement of oil and diamond riches.

Global Witness Chides Belgium

Global Witness didnt mince words with Belgium and called upon the European Union (E.U.) to strengthen measures that restrict the sales of diamonds from Zimbabwe’s Marange region to Europe. Belgium is leading the effort to drop sanctions against the Zimbabwean Mining Development Corporation (ZMDC). Global Witness is calling for ZMDC to remain on the list of entities affected by restrictive measures and it urges the addition of Anjin, a joint-venture diamond-mining company with links to senior Zimbabwean military officials, and Hong Kong-based businessman Sam Pa. The group contends that widespread human rights violations continue in the Marange and that diamond sales only benefit President Robert Mugabes ZANU-PF ruling party.

MINING 	  

Rio Tinto Reports Diamond Ops Loss

Rio Tinto reported that revenue from its diamond operations rose 2% to $741 ‎million in 2012. Despite the increase, the division posted a net loss of $43 million ‎compared with earnings of $10 million the previous year. ‎Production attributed to the company ‎rose 12% to 13.122 million carats during the year. Rio Tinto forecast diamond ‎production of 13.9 million carats in 2013.‎ The company did not provide an update to the strategic review of its diamond business.

De Beers Commits $2B to Venetia

De Beers will invest approximately $2 billion to build a new underground mine beneath the currently operating open pit Venetia diamond mine in Limpopo Province, South Africa. When completed, the underground operation will extend the life of Venetia until 2042 and replace the open pit as South Africa’s largest diamond mine. De Beers has received final outstanding regulatory clearances earlier this month. Underground operations will begin production in 2021, yielding approximately 96 million carats during the life of the mine.

Libera Threatens Miners Employing Children

Children in Liberia are reportedly dropping out of school to mine diamonds, but the government is threatening to crack down on the miners who are illegally employing these children. No one under 18 is permitted to work at diamond mines. However, the miners contend that children, with their small body size, fit perfectly into narrow tunnels below the surface to dig for diamonds.

Liberias Ministry of Lands, Mines and Energy estimates that at least 1,500 children are currently employed by Liberian diamond mines. Liberias unemployment rate is near 85% and about 95% of the population is living on less than $2 a day. The prospect of earning $50 for each diamond is too good for any age group to turn down. The government is threatening to revoke mining licenses, shut down mines and take legal action against any firm found to be employing children.

NT, Harry Winston Negotiate Supply Term

The Northwest Territories (NT) of Canada is negotiating a diamond allocation agreement with Harry Winston Diamond Corp. in support of local processing. Building the diamond manufacturing sector is one of the ways the government is working to achieve a diversified economy. These agreements with rough producers are intended to allow area diamond manufacturers to purchase diamonds from a percentage of the value of producers’ mine production, helping to support the sector.

Harry Winston expects to close on its $500 million purchase of the Ekati diamond mine from BHP Billiton by the second quarter, and complete the sale of its retail division to the Swatch Group for $1 billion by midyear at which time it would change its name to the Dominion Diamond Corp.

Stellar Secures $2M, Starts Studies

Stellar Diamonds raised approximately $1.76 million from a share placement and subscription of 41,960,640 new ordinary shares. The placement represented approximately 12.5% of the enlarged share capital. Proceeds will be used to advance the companys pasting project in Guinea and its Tongo project in Sierra Leone, including economic scoping studies, which commenced this week.

The studies will determine a financial base for projects ahead of prefeasibility and are being conducted by Paradigm Project Management. Tongo and Droujba currently have a combined inferred diamond resource of four million carats. Studies will center upon mine design and planning, treatment plant, ore processing options, capital budgeting, infrastructure options and operating cost analysis.

STATS 	  

Hong Kong

2012 $Mil. %Chng.
Polished imports $16,573 -4%
Polished exports $11,528 -11%
Net imports $5,044 23%

Rough imports $1,696 -15%
Rough exports $1,878 10%
Net imports ($183)

Net diamond account $4,862 11%

U.S.A

Dec. $Mil. %Chng. 2012 $Mil. %Chng.
Polished imports $1,345 -13% $19,637 -10%
Polished exports $1,246 -3% $17,779 -7%
Net imports $99 -62% $3,049 -22%

Rough imports $97 87% $550 -13%
Rough exports $54 39% $351 -17%
Net imports $43 207% $202 0%

Net diamond account $142 -48% $3,251 -21%

Belgium

Jan. $Mil. %Chng.
Polished exports $891 9%
Polished imports $1,134 -2%
Net exports ($243)

Rough imports $1,115 6%
Rough exports $1,058 7%
Net imports $57 -7%

Net diamond account ($399) 0%

ECONWATCH 	  

Diamond Industry Stock Report

Retail shares largely unchanged in the U.S. and Europe, Indian shares mixed. Mining shares mainly higher with Gemfields (+20%) leading the way. Read the extended industry stock report for this past week
Feb. 14 Feb. 7 Chng.
$1 = Euro 0.749 0.746 0.003
$1 = Rupee 53.94 53.22 0.7
$1 = Israel Shekel 3.68 3.69 -0.01
$1 = Rand 8.79 8.91 -0.12
$1 = Canadian Dollar 1.00 1.00 0.00

Precious Metals
Gold $1,635.30 $1,671.40 -$36.10
Platinum $1,708.00 $1,718.00 -$10.00

Stock Indexes Chng.
BSE 19,497.18 19,580.32 -83.14 -0.4%
Dow Jones 13,973.39 13,944.05 29.34 0.2%
FTSE 6,327.36 6,228.42 98.94 1.6%
Hang Seng 23,413.25 23,177.00 236.25 1.0%
S&P 500 1,521.38 1,509.39 11.99 0.8%
Yahoo! Jewelry 1,167.50 1,155.08 12.42 1.1%

Rapaport Weekly Market Comment Feb. 22, 2013

Diamond markets stable with strong demand for finest cut 3X under 1ct., F-I, ‎VS-SI stones. Large capes and very large 10ct.+ better goods improving. Other ‎categories weak. Expectations for low rough supply and steady prices at next week’s ‎DTC sight. De Beers 2012 rough sales -15% to $5.5B, earnings -49% to $506M, average ‎rough price -12%. BHP 1H diamond revenue -44% to $199M, deficit before tax of $37M ‎vs. profit of $120M. India’s Jan. polished exports -7% to $1.7B, rough imports -11% to ‎‎$986M. ‎ Zale’s 2Q revenue +1% to $671M, profit +43% to $41M. Security alert after ‎‎$50M diamond heist at Brussels airport and $4M hit on De Beers Paris store.‎

RapNet Data: Feb. 21

Diamonds 944,530
Value $6,000,082,774
Carats 1,036,097
Average Discount -27.31%

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RAPAPORT ANNOUNCEMENTS

Feb-Mar
27-8
Wed-Fri

Rapaport Melee Auction

New York & Hong Kong

View details.

March
5-9
Tue-Sat

Rapaport at HK Intl. Jewelry Show

List your diamonds, company name and booth location on the complimentary RapNet show listings diamond search. Register now.

Visit Rapaport in Hall 3-G, Booth B42

March
5-13
Tue-Wed

Rapaport Single Stone Auction

New York & Israel

View details.

March
18
Mon

Intl. Diamond Week in Israel 

Martin Rapaport will deliver his “State of the Diamond Industry” presentation at 4 p.m. in the Israel Diamond Exchange.

QUOTE OF THE WEEK
I am certain [the Brussels airport heist] was an inside job. It was incredibly audacious and well organized. In big jobs like this we are often surprised by the level of preparation and information. They know so much they probably know the employees by name.

Doron Levy | Ofek

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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. View jobs now.

INDUSTRY 	  

Brinks Compensates Brussels Heist Losses

Brinks compensated its clients for losses suffered from the Brussels airport heist on February 18. All customers were paid within 48 hours of the robbery; and while Brinks did not provide the exact amount of claims, approximately $50 million worth of rough and polished diamonds were stolen during the armed heist, according to the AWDC. Brinks has the exclusive handling license for cash-in-transit operations at the Brussels airport. Goods transported by other companies are transferred to the Brinks vaults at the airport and subsequently handled by Brinks within the airport facility. An investigation continues into the robbery, while speculation abounds in the press for how the heist was orchestrated.
De Beers Earnings -49%

De Beers reported 2012 revenue fell 16% year on year to $6.1 billion and rough diamond sales fell 15% to $5.5 billion. Earnings dropped 49% to $506 million. Rough diamond prices decreased 12% during the year, which De Beers contended was in line with a drop in polished diamond prices. Diamond production fell 11% to 27.9 million carats. Free cash flow fell to $697 million from ‎$816 million in 2011, but net debt was reduced to $722 million, excluding shareholder loans, from $1.177 billion in 2011. Exploration investment rose to $59 million from $46 million the year before.

De Beers expects moderate growth for diamond jewelry demand in 2013, ‎supported primarily by a more positive outlook from China and India compared with 2012. Some upside is possible in the U.S., while trading conditions in other developed ‎markets are likely to be challenging. The rough diamond manufacturing sector closed ‎‎2012 with high levels of inventory, particularly in the higher-end categories of diamonds, ‎and faces continued pressure in terms of midstream liquidity. In the medium to long term, ‎industry fundamentals are expected to strengthen as diamond production plateaus and ‎demand continues to increase.‎

EU Eases Zimbabwe Sanctions

WATCH NOW: Catherine Ashton, the High Representative of the European Unions (EU) foreign affairs council, and William Hague, Foreign Secretary of the U.K., comment after the vote to ease some restrictions on Zimbabwe ahead of its constitutional referendum vote in March. EU sanctions are reviewed annually and this year Belgium lobbied to strike the Zimbabwe Mining Development Corporation (ZMDC) from EU trade restrictions; however, that was not approved just yet pending transparent presidential elections, which are tentatively planned for July.

U.S. sanctions remain on ZMDC along with the Minerals Marketing Corporation of Zimbabwe, Mbada Diamonds, Marange Resources and its Block Wood Mining company, and numerous individuals in the ruling party, some of whom the U.S. State Department determined to have ties to diamond mining firms. The full list can be found here

RETAIL & WHOLESALE 	  

Zales Profit Jumps to $41M

Zale Corporations second-quarter revenue rose 1% year on year to $670.8 million for the three months that ended on January 31. Same-store sales rose 2.8%. Cost of sales rose 0.9% to $331.1 million. Net earnings jumped to $41.2 million from $28.8 million one year ago. Zales brand stores, consisting of Zales Jewelers and Zales Outlet, posted a comparable-store sales increase of 3.6%, compared with an increase of 10.1% one year ago. U.S. fine jewelry brands including Gordon’s Jewelers, posted a comparable store sales increase of 2.8%, following an 8.9% rise in the same period last year.
Rajesh Exports Profit +15%

Rajesh Exports Ltd. reported that sales rose 20% year on year to $1.45 billion, during its third fiscal quarter that ended on December 31. Growth was driven by its export and retail businesses. Expenses were up 21% to $1.42 billion, but profit increased 15% to $24.4 million. The company had outstanding orders worth $1.26 billion as of December 31.

Jewelry CPI -4%

The U.S. consumer price index (CPI) for jewelry eased again in January, falling 3.5% year on year to 176.7 points in response to marginally weaker prices for precious metals. The index was just a touch lower than Decembers reading, which was revised lower than originally stated to 176.8 points. Nonetheless, the CPI maintained a historically strong trend and January marked 25 consecutive months of a reading of more than 170 points.

Gunmen Holdup De Beers Paris Shop

Two armed men, allegedly wearing bullet-proof vests stole approximately $4 million worth of goods from a De Beers boutique at Printemps in central Paris on Tuesday. The men sought the sales associate to open two display cases at 6:45 p.m., or about one hour before closing time. The gunmen grabbed diamond jewelry and fled using a staircase at the rear of the building. No injuries were reported and most shoppers in the crowded shopping center at the time were unaware the heist took place.

JA Member Weighs in on Marketplace Fairness Act

Jewelers of Americas (JA) board member James Rosenheim, the CEO of Tiny Jewel Box in Washington, D.C., participated in the Marketplace Fairness Coalition briefing Wednesday urging efairness for small business owners in support of the Marketplace Fairness Act of 2013. Participants highlighted reasons to pass the law, which would close a tax loophole excluding online retailers from collecting and remitting state sales tax.

Retailers noted that the law would not create any new tax, but instead, just level the playing field online and offline. Loss of sales tax revenue, they added, also hurts society as it places undue burden on local communities where small businesses operate brick-and-mortar stores. It is estimated that up to $23 billion in sales tax revenue is lost each year due to this loophole.

Sarins Profit -20% 

Sarin Technologies ‎reported that its profit fell 20% year on year to $3.8 million during the fourth quarter ‎that ended on December 31.‎ The decline resulted from lower gross margins associated with the ‎composition of products sold, coupled with an increase in third-party commissions. Revenue ‎rose 1% to $14.2 million during the quarter. Sarin estimated that manufacturing in India fell by about 40%, while the figure was 20% lower in Belgium and ‎Israel during the third quarter

GENERAL 	  

India to Suspend Thai Gold Jewelry Imports

India is planning to suspend gold jewelry imports from Thailand over concerns that incoming jewelry does not have 20% added value as stipulated in the foreign trade agreement between the two countries. The Department of Commerce has asked the Department of Revenue to issue a notice suspending the imports under the provisions of Early Harvest Scheme until the certificates of origin issued by Thailand are verified to Indias satisfaction. The Early Harvest Scheme, signed by India and Thailand in 2004, allows imports of gold jewelry at a lower duty of 1%, while such imports from other countries are charged around 11%.
IDE Preps for Buyers Week in March

The Israel Diamond Exchange (IDE) will host a buyers week from March 17 to 20 aimed at providing a range of business opportunities for IDE members. Buyers will be offered complimentary hotel accommodation at the Leonardo Hotel, located opposite the Ramat Gan diamond exchange complex. Archos, the Israeli subsidiary of Russias ALROSA, will hold a tender of diamonds of 10.8 carats and larger; De Beers rough diamond-auction unit, Diamdel, will hold two auctions, one for rough diamonds larger than 5 carats, and one for rough of 2.50 carats to 4 carats; I. Hennig & Co. Ltd. and Fusion Alternatives Tenders will hold a joint rough diamond tender and eDiamond will stage an online tender. The Rapaport Group will hold a polished diamond auction and Tzoffeys 1818 will stage an exclusive auction for special loose diamonds and extraordinary diamond jewelry pieces.

Stable Outlook Supports Indian Exporters

IndiaRatings & Research (IRR), a Fitch Group Company, issued a stable outlook for the gems and jewelry exporters and stable to negative outlook for domestic jewelry retailers in 2013. The analysts concluded that while exporters were likely to report better revenue growth this year, margins may be on par with 2012; whereas domestic retailers were likely to report lower revenue growth and marginally lower margins. Retailers who are aggressiving adding stores may be at the greatest risk.

IRR anticipated export slippage to stop this year, as the markets in Hong Kong, Dubai and Singapore improve, while the U.S. remains steady. IRR determined that liquidity is likely to remain stretched in 2013, and inventory levels are likely to increase moderately on account of slowing sales and new store openings that would keep the inventory requirements high during the year.

Although retailers tried to reduce inventory levels in 2012, by offering higher discounts, suppliers lowered their credit period for domestic jewelers.

MINING 	  

BHPs Diamond Revenue -44%

BHP Billitons revenue from its diamond operations fell 44% year on year ‎to $199 million in the six months that ended on December 31. Underlying earnings ‎before interest and tax fell to a deficit of $37 million compared with a profit of $120 million a year ‎earlier. Diamond production fell 35% to 608,000 carats.‎ BHP Billiton recently agreed to sell its interest in Ekati to Harry Winston Diamond Corporation ‎for $500 million. The transaction is expected to close in the first half of calendar 2013. ‎Net operating assets of the diamond division were valued at $487 million on December 31, down from $815 million a year earlier. ‎

Gemfields Selects Kunis for Campaign

Gemfields named actress Mila Kunis as the company’s new brand ambassador and face of its latest advertising campaign. Kunis was photographed by Mario Sorrenti and styled by Anastasia Barbieri. The campaign features a fresh-faced and modern Kunis wearing one-of-a-kind emerald and ruby jewelry created by six of Gemfields’ designer partners: Alexandra Mor, Amrapali, Dominic Jones, The Gem Palace, Sutra and Fabergé. Kunis said that she was impressed with Gemfields practice of ethical mining.

STATS 	  

India

Jan. $Mil. %Chng.
Polished exports $1,689 -7%
Polished imports $598 -39%
Net exports $1,091 30%

Rough imports $986 -11%
Rough exports $173 13%
Net import $813 -15%

Net diamond account $278

ECONWATCH 	  

Diamond Industry Stock Report

U.S. stocks were down moderately, but Zale was down 20%. European and Indian shares were mixed. Mining shares mainly lower except Firestone (+20%). Read the extended industry stock report for this past week
Feb. 21 Feb. 14 Chng.
$1 = Euro 0.758 0.749 0.009
$1 = Rupee 54.48 53.94 0.5
$1 = Israel Shekel 3.70 3.68 0.02
$1 = Rand 8.90 8.79 0.11
$1 = Canadian Dollar 1.02 1.00 0.02

Precious Metals
Gold $1,576.50 $1,635.30 -$58.80
Platinum $1,612.00 $1,708.00 -$96.00

Stock Indexes Chng.
BSE 19,325.36 19,497.18 -171.82 -0.9%
Dow Jones 13,880.62 13,973.39 -92.77 -0.7%
FTSE 6,291.54 6,327.36 -35.82 -0.6%
Hang Seng 22,906.67 23,413.25 -506.58 -2.2%
S&P 500 1,502.42 1,521.38 -18.96 -1.2%
Yahoo! Jewelry 1,163.49 1,167.50 -4.01 -0.3%

A co ta bruselská loupež? To je taky dost zajímavost ve světě diamantů.😉

Zaujímavosť určite je , mimoriadne profesionalna práca , nikto nebol zranení a na sekundu presná , holt nebola to práca " břídilů".😉

Rapaport Weekly Market Comment March 1, 2013

Cutting center sentiment improving with rising expectations for Hong Kong show but Far East demand still restrained. Prices for normal rough up 4-6% but very large 15 ct.+ rough surging with some prices up over 12%. CAUTION: SPECULATIVE ROUGH FRENZY APPEARS UNSUSTAINABLE. Large polished moving better but not booming. Mid quality VS-SI polished steady with excellent demand for 3X. De Beers sight est. $550M with ‎re-assortments adjusting prices upward ‎some 4%. Pandora 2012 revenue flat at $1.2B, profit -41% ‎to $211M. Petra Diamonds 1H revenue +63% to $152M, net loss of $15M vs. loss of ‎‎$27M. Forevermark grades $500M worth of diamonds in 2012.‎

RapNet Data: Feb. 28

Diamonds 931,457
Value $6,224,144,166
Carats 1,033,796
Average Discount -27.36%

www.rapnet.com

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RAPAPORT ANNOUNCEMENTS

Feb-Mar
27-8
Wed-Fri

Rapaport Melee Auction

New York & Hong Kong

View details.

March
5-9
Tue-Sat

Rapaport at HK Intl. Jewelry Show

List your diamonds, company name and booth location on the complimentary RapNet show listings diamond search. Register now.

Visit Rapaport in Hall 3-G, Booth B42

March
5-13
Tue-Wed

Rapaport Single Stone Auction

New York & Israel

View details.

March
18
Mon

Intl. Diamond Week in Israel 

Martin Rapaport will deliver his “State of the Diamond Industry” presentation at 4 p.m. in the Israel Diamond Exchange.

QUOTE OF THE WEEK
Indias Finance Minister has correctly sought to divert some of the demand for gold from the ‎investment sector to financial instruments, like inflation-indexed bonds and others which will ‎not impact the more productive jewelry sector.

Mehul Choksi | Gitanjali Group

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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. View jobs now.

INDUSTRY 	  

Indias Budget Avoids Legacy Trade Issues

India’s gem and jewelry trade was relieved that the government didn’t hike ‎the country’s gold import duty again as part of the federal budget for fiscal 2013-14 but they were also disappointed that ‎concerns were not addressed.‎ In January, the ‎government increased the import duty on gold to 6% from 4% in an effort to ‎discourage demand, which has contributed to the countrys large current ‎account deficit.‎

Brokerage firm Religare concluded that legacy issues remain, especially measures to curb money-laundering. GJF has already stated that there was a lot of confusion about the amended Prevention of Money-laundering Act that came into effect on ‎February 15.‎ The budget made no mention of the diamond industry’s recommendation to introduce a ‎duty-free import quota for cut and polished stones. The ‎Gem & Jewellery Export Promotion Council (GJEPC) recommended that provision as trading activity suffered since the government imposed a 2% import duty on polished diamonds in January 2012.

India’s deficit hit a record high of 5.4% of its gross domestic product (GDP) in ‎the second fiscal quarter that ended in September 2012.‎ The Finance Minister stated that households must be given incentives to save in financial ‎instruments rather than buy gold.

Buyers Splurge on Fine Jewelry at JA

WATCH NOW: See why exquisite new lines of fine jewelry were a hit at JA New Yorks winter show. Exhibitors and designers found that unique pieces, even in price points above the midrange, appeared to have won over buyers interest this year. See Anthony Lent of Anthony Lent & Sons, and designers Holly Dyment and Deborah McLaughlin as they share their passion behind new collections using steel, enamel, diamonds and some unusually perfect and rare gemstones.

Stable Demand Highlights Signature Show

The Mumbai Signature show closed with diamond dealers and jewelry wholesalers feeling fairly ‎satisfied that the market appeared to be stable, even as sales remained relatively muted. Many saw the ‎event as a precursor to the Hong Kong show on March 5, which is expected to provide a stronger ‎and more diverse trading opportunity. Demand for VS-SI goods remained strong, with some supply shortages; local trade focused on dossiers and below carat goods, with steady demand for 0.30-‎carat to 0.50-carat, VS-SI. There was improving demand for VVS and lower colors, particularly from retailers in south India. ‎Pears, marquise and heart shapes were in demand, while princess ‎and cushions remained just stable.

RETAIL & WHOLESALE 	  

Forevermark Grades $500M Worth of Stones

Forevermark inscribed $500 million worth of diamond in 2012, according to ‎Stephen Lussier, the CEO of Forevermark. India accounted ‎for 8% of the brands sales, having launched in the country in January 2011. The ‎De Beers brand is planning to increase that figure to 20% in the next five years. ‎Revenue from Forevermark rose 50% in 2012 ‎as the brand expanded its retail partnerships by 40% to more than 900 doors. In ‎India, the brand is now present in about 85 doors with plans to expand to around 130 by ‎the end of 2013.

Pandora Profit -41%

Pandora reported that group revenue was flat in 2012 at $1.17 billion, while gross margin as a percentage of sales slipped to 66.6% from 73% one year ago. Profit plunged 41% to $211 million. Free cash flow dropped 31% to $202 million. Pandora terminated its arrangement with distributor Verite Co. Ltd. for Japan, and entered into a new deal with Bluebell Japan Ltd. for the region. The jeweler expects to open about 150 new stores globally this year, launch online retail in Europe and achieve global revenue of about $1.4 billion.

Charles & Colvard Profit Jumps

Charles & Colvard Ltd. reported that its sales rose 40% year on year to $22 million for the year that ended on December 31. Profit rose to $4.4 million, or 22 cents per diluted share, from $1.6 million, or 8 cents per share, in 2011. Loose moissanite gemstone sales increased 24% to approximately $15 million, while finished jewelry sales surged 87% to approximately $7.4 million. The fourth quarter of 2012 included a net income tax benefit of $3.8 million and a second tax benefit of approximately $320,000. The company held no outstanding debt.

JCP Loss Soars to $1B

JCPenney (JCP) reported loss of $985 million, or $4.49 per share, for the year that ended on February 2. Revenue fell 25% year on year to $12.99 billion, same-store sales declined 25.2% and Internet sales plummeted 33% percent to $1 billion. JCPs gross margin in 2012 was 31.3% of sales, compared with 36% one year ago. The company reduced its debt by $250 million in 2012, and it ended the year with $930 million in cash and cash equivalents. Retail analyst Walter Loeb blasted JCPs results, calling the companys turn-around strategy a total farce and predicted that conditions could get even worse.
Nordstrom Profit +20%

Nordstrom reported that fourth quarter revenue jumped 13.3% year on year to $3.7 billion for the period that ended on February 2. Same-store sales rose 6.3% company-wide; however, full-line Nordstrom comparable-store sale increased only 2.2%. Profit surged 20% to $284 million or $1.40 per diluted share. Gross profit, as a percentage of net sales, was flat. Markdown improvements were offset by higher expenses associated with the retailers Fashion Rewards program, which generated incremental sales and attracted new members. Top performing merchandise categories included men’s apparel, cosmetics, childrens apparel and women’s apparel.

TBZ Opens in Raipur

Tribhovandas Bhimji Zaveri (TBZ) of Mumbai will open its first showroom in Chhattisgarh, specifically a 2,900-square-foot store in Raipur at Prem Store on Malviya Road. TBZ stated that its opening of TBZ-The Original was timed to serve shoppers during the Holi festival and pre-wedding buying season with a new bridal collection. This location marks the companys 24th store.

Mouawad Debuts Pearl Suites

Mouawad and RAK Pearls Holding LLC debuted their Flower of Immortality Suite and the Lunar Pearl Suite at the Doha Jewellery & Watch Exhibition this week. The Flower of Immortality Suite features an 18-karat white gold necklace, bracelet, earrings and ring set with 20.46 carats of verdant green emeralds surrounding gem-quality white cultured pearls wrapped in rows of diamonds. The Lunar Pearl Suite is a set of matching necklace, bracelet, ring and earrings in 18-karat white and yellow gold intertwined with 59.13-carats of diamonds surrounded by gem-quality white cultured pearls.

Rebel Chique Diamonds Debuts

Rebel Chique Diamonds by Royal Asscher feature man-made stones and aims change the notion that diamonds are a once-in-a-lifetime heirloom. Rebel Chique expects to tap the advantages that man-made diamonds have over natural stones: they can be cultivated in colors and sizes very rarely encountered in natural diamonds, offer a more personalized diamond experience and remain affordable. The Rebel Chique generation is younger and wants to create its own style icons. All stones will be certified by independent labs to guarantee quality and transparency and to avoid misleading consumers.
TAG Heuer Opens Online Shop

TAG Heuer opened its first online shopping boutique, which the watch brand designed to mimic its "lifestyle lounge" concept and to allow consumers to fully immerse themselves in the brand from any location. TAG Heuer offers high-end timepieces, limited-edition styles and lifestyle accessories such as eyewear, cufflinks, luggage, jackets and more. Shop.TAGHeuer.com showcases the newest collections of TAG Heuer 1887 movements, and it supplements TAG Heuers luxury boutiques by providing customers from across North America a way to engage the brand directly.

GENERAL 	  

List of Stolen KP Certificates

The World Diamond Council (WDC) and the European Union (EU) provided the following Kimberley Process certificate numbers for rough parcels that were stolen during the Brussels Airport heist. Immediately contact the authorities if you come across any of these certificates.

KIMBERLEY PROCESS CERTIFICATE NUMBERS
EU00503581
EU00503589
EU00503613
EU00503619
EU00503620
EU00503623
EU00503626
EU00503634
EU00503637
EU00503640
EU00503644
EU00503649
EU00503650 EU00503654
EU00503657
EU00503669
EU00503670
EU00503671
EU00503673
EU00503674
EU00503676
EU00503678
EU00503683
EU00503684
EU00503685
EU00503687
Boys Death a Wake-Up Call for Zimbabwe

Zimbabwes Centre for Natural Resource Governance (CNRG) and the Peace-Building & Capacity Development Foundation (PACDEF) issued a joint statement calling for the Southern African Development Community to ensure a peaceful environment ahead of the nations elections, following the death of 12-year-old Christpower Maisiri on February 23. Maisiri, the son of an MDC-T candidate, died when his sleeping quarters were set on fire. ZANU-PF denies involvement in the fire, but the MDC-T named five party members involved in the arson attack. CNRG and PACDEF acknowledge a cycle of violence exits in the country before elections and warned of escalating violence this year once a date is set for the presidential polls.

Mandelkern Dies at 87

Bob Mandelkern died at the age of 87 after a long struggle with Parkinsons disease. Mandelkern, a veteran of the Diamond Manufacturers & Importers Association of America (DMIA), was a leader among the generation of so many current members fathers who not only led the group, but who also served as role models and mentors. Mandelkern rightfully takes his place among DMIAs esteemed leadership who took an active interest in the group and showed the way. In his later years, Mandelkern was very active in the American Parkinson Disease Association and participated in the successful effort to secure the passage of the bill funding stem cell research in Connecticut. From 2006 to 2011, he served as a member of the CT Stem Cell Research Advisory Committee. He was also the Connecticut state coordinator of the Parkinson’s Action Network. MINING

Petra Loss Narrows to $15M

Petra Diamonds reported revenue rose 63% year on year to $152 million for the first half, and it recorded a net loss of $15.2 million compared with a loss of $26.7 million one year ago. Petra recorded impairment charges of $17.8 million related to the Fissure mines, whose disposal process is underway. Petra restated the trading results for the first half to account for assets held for sale. Production, including from the Fissure mines, rose 31% to 1.247 million carats. The company held diamond inventory worth $45.4 million as of December 31, up from $38.1 million a year earlier. Petra sees a stable rough market.

Namakwa Tender Nets $1M

Namakwa Diamonds February tender of rough diamonds from its South African subsidiaries achieved $970,000. The company reported that a total of 1,962 carats were sold for an average $496 per carat with the average stone size of 0.50 carat. The company described the tender as satisfactory, with certain articles selling above premiums.

Stornoway Completes Renard 65 Recovery

Stornoway Diamond Corporation completed its diamond recovery program from the Renard 65 bulk sample in north-central Quebec. In total, 962.8 carats of diamonds larger than a +1 DTC size sieve were recovered. Diamond valuation has now been scheduled to take place in Antwerp. Early sampling revealed a 9.78-carat white, octahedral gem from the program, with a preliminary valuation of $7,000 per carat. The next largest diamond was a 6.41-carat white gem, also of high-quality, and a preliminary valuation of $4,700 per carat.

ECONWATCH 	  

Diamond Industry Stock Report

Stocks were largely mixed, however, there were hefty losses with many firms: Birks (-9%), Charles & Colvard (-8%), JCP (-19%), Scio (-18%), C. Mahendra (-10%), Goenka (-12%), Goldiam (-10%), True North (-17%), Namakwa (-15%). Read the extended industry stock report for this past week
Feb. 28 Feb. 21 Chng.
$1 = Euro 0.765 0.758 0.007
$1 = Rupee 54.37 54.48 -0.1
$1 = Israel Shekel 3.71 3.70 0.01
$1 = Rand 9.01 8.90 0.11
$1 = Canadian Dollar 1.03 1.02 0.01

Precious Metals
Gold $1,580.40 $1,576.50 $3.90
Platinum $1,581.00 $1,612.00 -$31.00

Stock Indexes Chng.
BSE 18,861.54 19,325.36 -463.82 -2.4%
Dow Jones 14,054.49 13,880.62 173.87 1.3%
FTSE 6,360.81 6,291.54 69.27 1.1%
Hang Seng 23,020.27 22,906.67 113.60 0.5%
S&P 500 1,514.68 1,502.42 12.26 0.8%
Yahoo! Jewelry 1,170.29 1,163.49 6.80 0.6%

Rapaport Weekly Market Comment March 8, 2013

Strong Hong Kong show exceeds expectations with much better business than last year. Excellent demand for 0.30-0.40 ct., F-I, VS-SI, goods. 3X bringing 5-8% premiums with some buyers taking VG due to shortages and higher prices for 3X. RapNet Diamond Index (RAPI) for 1 ct. polished diamonds +0.2% in Feb. Rough trading slows as speculative dealers cant sell high-priced purchases. U.S. confidence mixed as Dow Jones hits record high but March spending cuts slow economic growth. U.S. Jan. polished imports +11% to $1.7B, polished exports +29% to $1.5B. Botswana Dec. diamond exports -39% to $140M, FY exports +20% to $4.4B.

RapNet Data: Mar. 7

Diamonds 978,969
Value $6,390,298,394
Carats 1,069,223
Average Discount -27.34%

www.rapnet.com

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RAPAPORT ANNOUNCEMENTS

March
5-13
Tue-Wed

Rapaport Single Stone Auction

New York & Israel

View details.

March
11-19
Mon-Tue

Rapaport Melee Auction

New York

View details.

March
18
Mon

Intl. Diamond Week in Israel 

Martin Rapaport will deliver his “State of the Diamond Industry” presentation at 4 p.m. in the Israel Diamond Exchange.

QUOTE OF THE WEEK
There’s an irrational exuberance in the market today. I don’t see the logic in ‎why people are paying so much for rough diamonds.

Name Withheld | De Beers Sightholder

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. View jobs now.

INDUSTRY 	  

De Beers Feb. Sight Estimate $550M

The De Beers February sight closed with an estimated value of $550 million as the ‎company adjusted assortments to reflect higher values in its boxes. ‎Sightholders noted that while De Beers kept its prices basically stable, the readjustments in the boxes effectively translated to a ‎price increase of around 4%. ‎Premiums on De Beers boxes ‎have improved and are selling at around 5% on the secondary market. Prices for ‎very large rough, above 15 carat sizes, have increased by more than 12%.‎ Dealers reported that premiums vary according to the type of goods being traded with ‎cheaper goods garnering up to 8%, while more expensive rough that is suitable for high-‎end polished is trading at lower premiums.‎

RAPI Steady in Feb.

Certified polished diamond prices held steady in ‎February as U.S. markets and improved Far East consumer confidence have helped spur strong ‎demand for mid-quality VS-SI, triple EX diamonds.‎ The RapNet Diamond Index (RAPI™) for 1-carat certified polished diamonds increased ‎‎0.2% in February, RAPI for 0.3-carat diamonds rose 2.7% and ‎‎0.5-carat stones ‎increased 0.7%, while 3-carat diamonds fell 0.2%. Prices have held relatively ‎steady ‎in the first two months of 2013.

The Rapaport Monthly Report – March 2013, “Steady Markets, Rough ‎Anxieties,” is available for purchase at diamonds.net/report and addresses supply and demand concerns and explains why the surge in rough prices appears unsustainable.‎
Hong Kong Show Activity Turns Upbeat

The mood was positive at this weeks Hong Kong International Jewellery Show given strong traffic and, at least, better business levels than were experienced in all of 2012. There were a lot of inquiries for ‎goods, but these did not necessarily translate to strong sales as there remains notable ‎discrepancies between seller asking prices and buyer offers.‎ There has been strong demand for GIA-certified 0.30-carat to 0.50-carat, H-I, VS-SI goods; excellent demand for triple EX certified stones and there are shortages in the market; stable demand for round, 1-carat to 3-carat goods; weak activity for better quality VVS+ clarity stones, while commercial-quality fancy shapes are strong.

RETAIL & WHOLESALE 	  

Kothari Discusses Indias Outlook

WATCH NOW: Sanjay Kothari, the past chairman of the Gem & Jewellery Export Promotion Council, comments on the recent Signature Show in Mumbai and overall market conditions in India. Traders remain relatively optimistic despite the headwinds of slow local demand for diamonds and jewelry, a volatile rupee to dollar exchange-rate and tight liquidity.

Sothebys Profit -37%

Sothebys reported that its fiscal year revenue dropped 8% year on year in 2012 to $768.5 million, and attributed the decline to an 11% drop in auction commission, resulting from a 10% reduction in auction sales. Profit plunged 37% to $108.3 million, or $1.57 per diluted share. Before the fiscal year ended, Sothebys refinanced its long-term bonds to year 2022, and incurred a $15 million pre-tax bond redemption loss as a result. However, this long-term refinancing will reduce Sothebys financing costs by approximately $5 million per year, beginning in 2014.

Berkshires Jewelry Brands Come Under Pressure

Berkshire Hathaway, which owns Ben Bridge Jeweler, Borsheims Fine Jewelry, Helzberg Diamonds and the Richline Group among many other diverse product and services brands, reported net earnings jumped 42% to $15.3 billion in 2012 in large part due to bets placed on derivatives and not strong retail sales. Net earnings attributable to shareholders rose 45% to $14.8 billion. Revenue rose 13% to $162.5 billion. Retailers recorded a revenue increase of 4% year on year to $3.7 billion and pre-tax earnings from this division rose just 2% to $306 million.

Increased revenue from the home furnishings and jewelry businesses as well as the inclusion of Oriental Trading since its acquisition on November 27, were partially offset by lower revenue from Pampered Chef. However, home furnishings retailers were substantially offset by lower earnings from jewelry businesses and Pampered Chef. Company chairman, Warren Buffett, will be selling jewelry to shareholders behind Borsheims counter in Omaha, Nebraska on May 5, with crazy Warren pricing in an attempt to ring-up $2 million in sales that afternoon.

Kristall Celebrates 50 Years

Kristall celebrated 50 years since its founding by the Ministry of Finance of the USSR on March 1, 1963. Kristall is the largest polished diamond manufacturing enterprise in Europe specializing in high-quality diamonds, is acknowledged as the Russian Cut brand and prides itself on producing diamonds that conform to the Triple Excellent standards. Kristall is represented by four trading companies, one each in Antwerp, New York, Hong Kong and Dubai. During the past 50 years, Kristall has polished 80.5 million diamonds, for a total weight of 9.3 million carats. The company currently employs 2,200 professionals.

Qatar Boosts Stake in Tiffany to 11%

The Qatar Investment Authority, the largest shareholder in Tiffany & Co., increased its stake in the retailer to 11.27% this week. The sovereign wealth fund first purchased a 5.2% stake in Tiffany nearly 11 months ago, by February it had grown its investment to an 8.7% share. The news provided a boost to Tiffany on the Nasdaq this week as shares rose a solid 6% to more than $70, however, the share price remains just about flat year on year. BlackRock, The Vanguard Group and Capital World Investors follow behind Qatar as the top shareholders. Tiffany reports fourth quarter and fiscal year results on March 22.

GENERAL 	  

GIA Lab Reports Get a Makeover

The Gemological Institute of America (GIA) revised the format for its global-standard gem grading and identification reports to consume less paper and other materials, weigh less and offer enhanced security features, including a unique and durable proprietary paper, that exceed document security industry guidelines. QR codes printed on each report will verify the document’s authenticity through direct access to GIA’s online Report Check service. There is also a new, streamlined process for consumers and occasional laboratory clients to submit gems for grading and identification services. GIA used the opportunity to redesign its website, too.

Additionally, the Ethisphere Institute named GIA as one of the World’s Most Ethical Companies in 2013 for efforts on building and maintaining a superior ethics and compliance program. Companies on the list have demonstrated an active role in promoting ethical business practices internally and exceeded legal compliance standards. GIA joined 144 firms named to the list this year.

Firm Denies Smuggling Zim Stones

China Sonangal, which 100Reporters.com alleged was part of a diamond-smuggling operation in Zimbabwe, denied the charge and added that it had not purchased any diamonds from the country. The head of legal services for China Sonangal, Wee Jee Kin, told the Zimbabwe Independent that, while true, the firm is involved in the diamond business, among others, its diamonds only come from our jointly-held Catoca mines in Angola and none are from Zimbabwe.

In an unrelated story, the Independent also quoted Zimbabwes Mines Minister, Obert Mpofu, discussing plans to seal off newly discovered diamond fields in Masvingo provinces Bikita district to halt illegal mining and to avoid a repeat of the Marange diamond fields free-for-all in 2006. Mpofu insisted the lockdown of the area would be achieved peacefully and in an organized manner to plug mineral leaks and allow the nation to benefit from its resource wealth.

Forbes Ranks Top Billionaires 

The annual Forbes list of billionaires boasted 1,426 names this year with an aggregate net worth up 17% year on year to $5.4 trillion. The U.S. led the roll call with 442 billionaires, followed by the Asia-Pacific region with 386, Europe with 366, the Americas with 129 and the Middle East and Africa at 103. Here are some of the major players who touch the diamond industry in one form or another.

Direct industry players included Nicky Oppenheimer and family at No. 182, down from No. 136 in 2012, and their net worth dropped $300 million to $6.5 billion; Laurence Graff, however, increased his standing on the list, rising 160 spots to No. 299 with a net worth of $4.3 billion from only $2.6 billion one year ago; Beny Steinmetz dropped to No. 316 from No. 162, and his net worth fell to $4.1 billion from $5.9 billion; Lev Leviev fell to No. 974 from No. 764 in 2012 and his net worth fell by $200 million to $1.5 billion and diamond dealer Nirav Modi joined at No. 1,342 with a net worth of $1 billion, according to Forbes.

Luxury retailers maintained prominent places on the list with Warren Buffett at No. 4 and a net worth of $53.5 billion, Bernard Arnault of LVMH at No. 10 with a net worth of $29 billion; Amazons founder, Jeff Bezos at No. 19 with a net worth of $25.2 billion; PPRs chairman Francois Pinault and his family were at No. 53 with a net worth of $15 billion; Patrizio Bertelli was No. 175 with a net worth $6.7 billion and Johann Rupert and family at No. 179 with a net worth of $6.6 billion.

DMIA Elects VanderLinden as President

The Diamond Manufacturers & Importers Association of America (DMIA) installed a new board and appointed new directors during the DMIAs general membership meeting on March 5. Ronald (Ronnie) VanderLinden was elected president, stepping in to fill the shoes of Ronald (Ronny) Friedman who served as DMIA president for the past nine years.

Executive Board:
President Ronald VanderLinden
Vice President Sheldon Kwiat
Vice President Fred Knobloch
Vice President Hertz Hasenfeld
Vice President Saul Goldberg
Vice President Eli Haas
Secretary Stuart Samuels
Treasurer Parag Shah

The board of directors include Steve Eisen, Marvin Finker, Ishaia Gol, Suzette Gomes, Manny Gordon, Jay Greenberg, Stan Grosssbard, Tom Heyman, Daniel Kaleko, Moishe Klein, Daniel Klugman, Melissa Kulhanhian, Alan Rehs, Charles Rosario, Matthew Schamroth and Michael Verstandig.

MINING 	  

Gemfields Profit Falls

Integrated mining firm Gemfields plc reported that its revenue fell 39% year on year to $27.7 million during the six months that ended on December 31. Profit slid 78% to $4.7 million. Gemfields rough emerald tender that took place in November in Singapore achieved $26.8 million and was 84% sold by lot. The company reported that a total of 930,000 carats sold for an average of $29.71 per carat. The company noted that it produced 14.5 million carats of emerald and beryl, mainly of higher-grades from its Kagem mine in Zambia during the period.

Gemfields also completed its acquisition of Faberge and acquired a 75% stake in a second substantial ruby deposit in the Montepeux district of the Cabo Deglado province of Mozambique.

Guinea Renews Stellars Licenses

Stellar Diamonds two diamond exploration licenses in Guinea were renewed for two years. The licenses are held by its subsidiary, Friendship Diamonds SA, and are located adjacent to company’s Droujba project, covering approximately 118-square-kilometers. Stellars Droujba property hosts a JORC-inferred 3 million carat diamond resource, according to the companys project report.

STATS 	  

U.S.A

Jan. $Mil. %Chng.
Polished imports $1,676 11%
Polished exports $1,513 29%
Net imports $164 -52%

Rough imports $39 3%
Rough exports $25 -50%
Net imports $13

Net diamond account $177 -46%

Botswana

Dec. $Mil. %Chng. 2012 $Mil. %Chng.
Rough and polished exports $140 -39% $4,430 20%
Rough and polished imports $155 223% $2,024 181%
Net exports ($15) $2,406 -16%

ECONWATCH 	  

Diamond Industry Stock Report

U.S. stocks were mixed with JCP (-16%) slammed for a second week, but Birks (+9%), Blue Nile (+5%) and Tiffany (+6%) performed well. European shares and most Indian firms were higher, C.Mahendra (+15%), Goenka (+7%), Suashish (+11%) stood out winners. Mining shares lower with Stornoway (-14%) and Firestone (-9%) in the steepest slump. Read the extended industry stock report for this past week.
Mar. 7 Feb. 28 Chng.
$1 = Euro 0.763 0.765 -0.002
$1 = Rupee 54.57 54.37 0.2
$1 = Israel Shekel 3.71 3.71 0.00
$1 = Rand 9.15 9.01 0.14
$1 = Canadian Dollar 1.03 1.03 0.00

Precious Metals
Gold $1,577.90 $1,580.40 -$2.50
Platinum $1,590.00 $1,581.00 $9.00

Stock Indexes Chng.
BSE 19,413.54 18,861.54 552.00 2.9%
Dow Jones 14,329.57 14,054.49 275.08 2.0%
FTSE 6,439.16 6,360.81 78.35 1.2%
Hang Seng 22,771.44 23,020.27 -248.83 -1.1%
S&P 500 1,544.26 1,514.68 29.58 2.0%
Yahoo! Jewelry 1,160.80 1,170.29 -9.49 -0.8%

Rapaport Weekly Market Comment March 15, 2013

Hong Kong show boosts market confidence. 0.30-0.40ct., G-K, VS2-SI2 certs are hot with good demand through 1ct. Oversizes bringing premiums. CAUTION: speculative rough prices unsustainable. U.S. retail improves with Jan. jewelry store sales +15% to $1.9B. Chow Tai Fook Jan.-Feb. same-store sales -2% with China -7% and Hong Kong / Macau +5%. Gem Diamonds 2012 revenue -34% to $202M, loss of $77M vs. profit of $35M. Belgium’s Feb. polished exports -9% to $1.3B, rough imports +8% to $1.2B. Christie’s expects pear-shape, 101.73ct., D, IF diamond to fetch estimated $20M ($197K/ct.) at May Geneva auction.

RapNet Data: Mar. 14

Diamonds 957,506
Value $6,356,488,863
Carats 1,051,947
Average Discount -27.27%

www.rapnet.com
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RAPAPORT ANNOUNCEMENTS

March
11-19
Mon-Tue

Rapaport Melee Auction

New York

View details.

April
9-17
Tue-Wed

Rapaport Melee Auction

New York & Dubai

View details.
March
18
Mon

Intl. Diamond Week in Israel 

Martin Rapaport will deliver his “State of the Diamond Industry” presentation at 4 p.m. in the Israel Diamond Exchange.
QUOTE OF THE WEEK
We are thrilled that Laurence Graff will be coming to Israel to join us for the inaugural International Diamond Week. I am grateful to his partners in the SAFDICO company, Johnny Kneller and Brian Gutkin for conveying our invitation. Mr. Graff will arrive in Israel especially to join us in this exciting inaugural event.

Yair Sahar | Israel Diamond Exchange

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. View jobs now.

INDUSTRY 	  

U.S. Jewelry Store Sales +15%

U.S. jewelry store sales rose 14.7% year on year to $1.954 billion during the month of January 2013, marking the highest total for the first month of the year as tracked by the U.S. Department of Commerce. In addition, consumer price inflation (CPI) for jewelry in January fell 3.5%. In broader retail news, advanced monthly sales for February revealed that department store sales fell 7.8% year on year to $12.44 billion. U.S. retail sales in total for February rose 3.6% to $339.3 billion. Retail trade sales increased 4.7% and nonstore retailers experienced a 15.7% surge in sales.
MJSA Panel: Teach Industry Reality

WATCH NOW: The MJSA Expo in Manhattan featured the latest tools, technology and services available to the jewelry making trade. In addition, attendees interacted with thought leaders on a number of issues, including a topic that addressed the next generation of jewelry making and design coming onto the scene. Panelists Patricia Madeja of the Pratt Institute, Arthur Skuratowicz of the Jewelry Training Center and J. Tyler Teague of Precious Metal Casting Consultants (PMCC) provided insights from the front lines of training and development of new designers who are pursuing careers in the industry. While there are perception, or reality, challenges --from within the industry as well as from students-- the key takeaways were to promote stronger communication, guidance and openness about the rules of survival in the global, evolving business of jewelry manufacturing and design.

RETAIL & WHOLESALE 	  

Chow Tai Fook Reports Weaker Comps

Chow Tai Fook reported that same-store sales fell 2% year on year during January and February due to continued weakness in China’s ‎retail market. By volume, same-store sales declined 3 percent.‎ Consumer sentiment in Mainland China was weak, ‎except during the Chinese New Year holidays. Same-store sales in Mainland China fell 7%, however, same-store sales in Hong Kong and Macau grew 5%. Chow Tai Fook expects its expansion program to open new points of sale to ‎take longer than planned due to the sluggish market.

PPR Eyes Pomellato

PPR is reportedly close to an agreement to buy a majority stake in Pomellato SpA, a midsize Italian jeweler. The deal could be about $450 million, according to unnamed insiders. Still, negotiations could fall apart. Damiani owns a minority stake in Pomellato and it is likely to remain a shareholder. Damiani also made an offer to buy a majority stake, but the deal was not accepted according to the insider.

Costco Says Tiffany Setting is Generic

Tiffany & Co. sued Costco Wholesale Corporation on February 14 alleging trademark infringement, counterfeiting and unfair competition, among other things, and sought $2 million per infringement for rings it found to be advertised for sale using its trademark. But Costco fired back, asking the court to dismiss the case and filed its own counterclaim, arguing that the diamond rings it sells are commonly defined as Tiffany settings, a generic term, which is not an infringement of trademark, it argued. Costco asked the court to prevent Tiffany & Co. from using its trademark against retailers who use that generic term in the future.
Ben Bridge to Open in El Paso

Ben Bridge Jeweler will open a new flagship store in El Paso, Texas on March 23 at the former Lacy & Co. boutique, marking the chain-stores eighth location in Texas. Nearly all of the sales associates from Lacy & Co. will join Ben Bridge under the direction of store manager Briana Gartin, an eight-year veteran of Ben Bridge. Lacy & Co.s former owners, Ellen and Charles Lacy, will remain active in the new store as advisors and community ambassadors, according to Ben Bridge. The jeweler plans to host a grand opening and community celebration on April 18.
Georg Jensen Names Chu as CEO

Georg Jensen named David Chu as its new CEO. Chu has served as co-chair of the companys board of directors as well as its chief creative officer. He will become a member of the board and continue as chief creative officer, overseeing the design direction and strategy for all products. Chu founded Nautica, the global lifestyle and clothing brand, in 1983. Beginning with six outerwear jackets, he expanded the brand to encompass all lifestyle categories including apparel, accessories, home and fragrance. In 2003 Nautica was sold to VF Corporation. From 2006 to 2009, Chu was chief creative officer of Tumi, the global luggage, travel and accessory brand.

Kirk Kara Wins Best Bridal Design

Kirk Kara has won first place in the JCK Jewelers Choice Awards for the category of Best Bridal Design for a sixth consecutive year. Kirk Kara won for the category in the price point range of $5,001 to $10,000 for a hand-engraved rose and white gold three-ring engagement set from the Pirouette collection. The two-toned engagement ring features 36 pavé-set brilliant round diamonds equaling 0.25 carats, all of which accent a ribbon-like halo design. Each of the flush-fit matching wedding bands is highlighted with pavé-set brilliant round diamonds equaling 0.17 carats.
New Ideal Cushion Collection for Forevermark

Crossworks Manufacturing Ltd. and A. Link partnered to create a new Hearts & Arrows Ideal Cushion collection that will be available exclusively to Forevermark authorized retailers in the U.S. This new cut was developed to meet growing demand for the shape and to create brand differentiation for Forevermark jewelers through this exclusive deal with A. Link. Both companies will premiere Crossworks Hearts & Arrow Ideal Cushion diamonds and A. Link’s Hearts & Arrow Ideal Cushion collection at the Forevermark forum taking place in Orlando, Florida from March 18 to 20

GENERAL 	  

FinCEN Mandates E-Filing by Apr. 1

The Financial Crimes Enforcement Network (FinCEN) reminded the trade to adopt the new electronic reporting format by April 1 for filing Suspicious Activity Reports (SARs), Currency Transaction Reports (CTRs), Registration of Money Services Business (RMSBs) and Designation of Exempt Person Reports (DOEPs) as required under the Bank Secrecy Act. Any paper filing will be out of compliance from March 31 forward and failure to meet these filing standards is subject to civil money penalties. Electronic reports are available through the BSA E-Filing System, where FinCENs new SAR, CTR, RMSB and DOEP reports are available. The BSA E-Filing System will accept submissions of the legacy versions of the SAR, CTR, DOEP and RMSB only until March 31.
Gulaylar to Build Exchange at Gem Tower

The Gulaylar Group from Turkey purchased a three-level space, including more than 12,000 square feet that features approximately 80 linear feet of highly-visible retail frontage at the International Gem Tower in Manhattan. Building developer Extell stated the buyer plans to create a jewelry exchange in the new space.

Extell contended that property closings at the Gem Tower continue at a steady pace and tenants may begin moving in about mid-year.

Nielsen Shops Its Expo Unit

Nielsen Holdings is said to be shopping around its expo unit, which includes JA New York, Couture and many other non-jewelry industry trade shows. The division accounted for about 3% of Nielsens total revenue, or $183 million, and hopes to draw the attention of private equity investors, according to insiders.

Crime Incidents Rise But Dollar Losses Drops

The Jewelers’ Security Alliance (JSA) concluded in its annual U.S. crime report for 2012 that the number of incidents increased from 1,478 in 2011 to 1,538, however, the total dollar losses decreased sharply from $85.1 million in 2011 to $60.2 million. Officials made 461 arrests during 2012, which was down from 657 arrests in 2011, according to JSAs data. The group recorded two homicides during the year, down from seven in 2011.

In the great majority of off-premises losses reported to the JSA, male and female Hispanic suspects were indicated. Based upon law enforcement reports, too, the majority of those arrested were found to be from Colombia and residing in the U.S. illegally. Local and federal law enforcement agencies have confirmed the existence of organized criminal groups identified as South American Theft/Robbery Gangs (SATG), which concentrate their criminal activities against the jewelry industry. The JSA has received reliable information indicting that some SATG are now operating in Canada or are now involved in criminal activities related to organized retail theft and other non-jewelry related crime. MINING

Gemfields Profit Falls

Gem Diamonds revenue fell 34% year on year to $202.1 million in 2012 ‎despite achieving record production at its flagship Letšeng mine. The average price for rough ‎diamonds sold from Letšeng fell approximately 15%. The group posted a loss of $76.5 million for the year compared with a profit of $34.8 ‎million the previous year. In 2012, the company sold 107,617 carats of diamonds from Letšeng for an average ‎‎$1,932 per carat, down from $2,776 per carat the previous year. Production at the mine ‎rose 2% to 114,350 carats.

Diamcor Completes Krone-Endora Upgrade

Diamcor Mining Inc. completed upgrades for procurement, delivery, construction and installation of a vast majority of its equipment and infrastructure to expand the quarrying and infield screening operations at the Krone-Endora at Venetia project in South Africa. These preparations were made in anticipation of a planned move to operating 24-hours, seven-days a week and were financed through $4 million in funding from its strategic partner Tiffany & Co. Project enhancements included the development of the semi-mobile infield screening plant, which Diamcor said would significantly enhance processing capacities and operating efficiencies for the long term.

Zim Seeks Election Funding From Miners

Zimbabwes finance minister Tendai Biti asked President Robert Mugabe to order diamond-mining companies to pay millions of dollars into the nations treasury in order to fund the nations constitutional referendum and upcoming elections in July. Biti said at least $217 million is required for the measures, and alleged the Treasurys share of diamond sales last year was $800 million, but miners had only paid $45 million.

Meanwhile, Zimbabwes Mine’s Minister, Obert Mpofu, said a review of the country’s exports would likely result in higher levies for unprocessed, raw minerals, while lower levies would be placed on refined minerals and diamonds that are processed inside the country in an attempt to encourage value addition to the nations resources.
De Beers Turns 125

De Beers and its subsidiaries, including Forevermark, celebrated the companys 125th anniversary this week. The occasion provided De Beers with a moment to reflect on all that has been built by those who came before the current leadership. Company CEO, Philippe Mellier, said while De Beers expanded beyond borders and into new markets, it has always kept the diamond dream at its core. The understanding that a diamond is precious and serves both as a symbol of love and a driver of economic development in the countries where the company operates, drives it forward, Mellier said.

ECONWATCH 	  

Diamond Industry Stock Report

U.S. retail stocks were mixed with Birks (-8%), Movado (-1%), Tiffany (-3%) on the downside, and Signet (+4%) and Zale (+9%) upside. European stocks higher. Indian shares under pressure Classic Diamond (-8%) C. Mahendra (-7%) and Titan (-10%) all lower. View the extended stock report.
Mar. 14 Mar. 7 Chng.
$1 = Euro 0.769 0.765 0.004
$1 = Rupee 54.21 54.37 -0.2
$1 = Israel Shekel 3.69 3.71 -0.02
$1 = Rand 9.18 9.01 0.17
$1 = Canadian Dollar 1.02 1.03 -0.01

Precious Metals
Gold $1,577.90 $1,580.40 -$2.50
Platinum $1,590.00 $1,581.00 $9.00

Stock Indexes Chng.
BSE 19,570.44 18,861.54 708.90 3.8%
Dow Jones 14,531.08 14,054.49 476.59 3.4%
FTSE 6,529.41 6,360.81 168.60 2.7%
Hang Seng 22,619.18 23,020.27 -401.09 -1.7%
S&P 500 1,562.75 1,514.68 48.07 3.2%
Yahoo! Jewelry 1,155.22 1,170.29 -15.07 -1.3%

Rapaport Weekly Market Comment March 22, 2013

U.S.-Israel trade week generates busy activity. Polished markets steady with strong demand for SI goods. China settling down following New Year seasonal increase in demand. De Beers announces five new sightholders including four Indian companies: H. Dipak, Asian Star, HVK Intl., and KP Sanghvi - and one Hong Kong company. Total sightholders now 82 as 2013-14 ITO supply forecast 20% lower than previous year. Kristall signs new two year rough supply deal with ALROSA. India’s Feb. polished exports +28% to $1.8B, rough imports -3% to $1.3B, net diamond account $224M vs. deficit of $333M a year earlier. THE RAPAPORT PRICE LIST WILL NOT BE PUBLISHED NEXT WEEK DUE TO ‎PASSOVER HOLIDAY.

RapNet Data: Mar. 21

Diamonds 960,363
Value $6,245,822,138
Carats 1,052,982
Average Discount -27.35%

www.rapnet.com

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RAPAPORT ANNOUNCEMENTS
April
9-17
Tue-Wed

Rapaport Melee Auction

New York & Dubai

View details.
April
15-24
Mon-Wed

Rapaport Single Stone Auction

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QUOTE OF THE WEEK
The next logistical step in Dubais growth as a diamond hub is to become a center for jewelry manufacturing. Local companies that have benefited from Dubais position between producers and consumers are now gearing up to manufacture their own high-quality contemporary jewelry, pushing Dubai into a new phase of growth.

Rihen Mehta | Rosy Blue

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. View jobs now.

INDUSTRY 	  

De Beers Adds Five Sightholders

De Beers Group added five new sightholders to its list of participants for the remainder of the 2012 to 2015 supplier of choice (SOC) contract period. De Beers’ modified SOC re-planning process enables businesses that demonstrated sufficient demand through De Beers’ auction sales in 2012 to qualify for term contract supply and sightholder status.

Rapaport News confirmed that four Indian companies, including H. Dipak, Asian Star Company Limited, HVK International Pvt. Ltd., and KP Sanghvi, and one Hong Kong-based company that has not been confirmed, were among the new sightholders. De Beers stated it would update its sightholder directory when all 82 sightholders begin the 2013 to 2014 ITO period on March 31.

De Beers sold 98% by value of the goods offered during its first two online auction ‎sales in 2013, noting a substantial improvement in the rough market. The company ‎declined to disclose the percentage of lots that were sold, however.‎ Many product categories attracted buyer interest not seen in a year or ‎more, according to Neil Ventura, the senior vice president of De Beers auction sales. Improved demand was observed from all regions, ‎customer segment and product categories. He noted that demand from Indian-based ‎businesses rose sharply during the second series of auction sales that were recently ‎concluded, while demand from buyers in Asia Pacific, Belgium and Israel also increased. Participation from Israel-based buyers reached the highest seen in two years, he added. ‎
Israels Dealers Comment on Diamond Week Trading

WATCH NOW: Israels U.S. and International Diamond Week at the Israel Diamond Exchange (IDE) hosted more than 200 foreign buyers and dealers and buyers alike offered mixed feedback, noting that it was a valuable platform for strengthening inter-bourse business and relationships, whereas outside buyers were more reserved and unwilling to pay premium prices. Nonetheless, sales appeared to be healthy for fancy cuts and larger diamonds, sizes greater than 10 carats, and for pink and blue stones under 3 carats.

Mpofu Reiterates Call to Lift Sanctions

In a speech to the Dubai Diamond Conference this week, Zimbabwe’s Minister of Mines and Mining Development, Obert Mpofu, asserted that his country will strive for a Kimberley Process that gives equal access to global diamond markets to every participant, and he repeated calls for the removal of sanctions on Zimbabwe’s diamond industry. The sanctions, he added, were in direct violation of the World Trade Organization provisions to promote fair and unrestricted trade amongst nations.

Commending South Africa and the UAE for their support on that trading goal, Mpofu highlighted the country’s new Zimbabwe Diamond Policy, which he claimed would guarantee security and accountability in the nation’s diamond industry. Concluding his speech, he stressed the importance of Zimbabwe’s diamond industry in transforming the country’s economy and catapulting it out of a recession.

In an interview with The Herald, Kurt Looyens, the senior vice president and global head of business development at ABN Amro, said the diamond trade was a very sensitive business, adding that as long as the EU restrictions remained in force, ABN Amro would not consider venturing into Zimbabwe.

RETAIL & WHOLESALE 	  

U.S. Jewelry CPI -3%

The U.S. consumer price index (CPI) for jewelry eased again in February, falling 2.8% year on year to 175.9 points in response to weaker prices for precious metals. The index was even a touch lower than Januarys reading of 176.7 points. Nonetheless, the CPI maintained a historically strong trend and February marked 26 consecutive months of a reading of more than 170 points. The CPI reached a record 183 points one year ago, but then prices for polished diamonds, gold and platinum remained under pressure throughout 2012. Diamond prices, in particular, have since stabilized, according to Rapaport Research.

Movado Groups 4Q Profit Falls

Movado Group reported that sales rose almost 1% year on year to $123.6 million for the fourth quarter that ended on January 31. The retailers cost of sales jumped 7.4% to $60.9 million and gross profit was 50.7% of sales, compared with 53.7% one year ago. Net income attributed to the Movado Group plunged 26% to $7.9 million or 31 cents per share. The companys fiscal year revenue, however, increased 7.9% year on year to $505.5 million, while cost of sales rose 7.6% to $227.6 million. Gross profit for the year rose slightly to 55% of sales compared with 54.8% the previous year. Net income for the year surged 78% to $57.1 million or $2.22 per share. Movado anticipates that sales will increase approximately 12% year on year into a range of $570 million to $575 million this fiscal year, while gross margin will be approximately 54% and net income will increase to approximately $48 million or $1.80 per diluted share.

ICRA Upgrades Supergems 

Ratings agency ICRA upgraded the short term outlook for working capital of Supergems Jewellery Manufacturing Pvt. Ltd. from CRA]A4 to CRA]A4+. The higher rating took into account significant revenue growth posted by Supergems along with improved margins, an increased volume of sales and an improvement in debt coverage indicators. ICRA noted Supergems experienced management and strong operational and financial support, but the rating remains under pressure by the modest scale of operations in the intensely competitive and fragmented jewelry industry.
Kristall Secures Supply From ALROSA

Kristall Production Corporation and ALROSA signed a two-year agreement for rough diamond supplies on March 18 in Moscow that maintained the existing volume of monthly purchases. ALROSA agreed to provide a rough diamond assortment that corresponded to Kristalls market niche and is most efficient for manufacturing, according to Maxim Shkadov, the general director of Kristall. Kristall has been cooperating with ALROSA on its rough supplies since 1992.

UBM Plans I Love Jewellery Show 

UBM Indias jewelry portfolio of shows added a business-to-consumer (B2C) event I Love Jewellery to be scheduled in October, a week before Diwali, and cater to jewelers of Chennai and surrounding cities. With the timing before the festive season, the B2C event will focus on high-end jewelry, watches and other products. UBM anticipates the show will attract more than 200 exhibitors and between 20,000 and 30,000 visitors.

Helzberg App Wins Appy 

Helzberg Diamonds took home two awards for its new smartphone application at the 2013 Appy Awards, an official event during the South by Southwest Conference (SXSW) in Austin, Texas. Helzbergs Proposal Pro™: A Complete Guide to Popping the Question, won two nods for best app in both the lifestyle and utilities categories of the Appys and was also a finalist in the marketing/branding/advertising category. Helzberg Diamonds released the app in December.

Tiffanys Setting is Trademarked

Attorneys for Tiffany & Co. charged Costco Wholesale Corporation with citing unreliable sources to defend the sale of rings with a Tiffany setting in its club stores, when the “Tiffany® Setting” is a federally registered, incontestable trademark that has been continuously used for over 175 years and enjoys worldwide fame and recognition.

Tiffany & Co.s attorneys told the court, in response to Costcos claim that the Tiffany Setting is generic, that the setting has been continuously manufactured by Tiffany & Co., in accordance with strict proprietary standards and specifications, for well over one century and those proprietary specifications set standards for the quality and visual appearance of the ring itself, including the shank, head and prongs, the quality of the diamond, and the manner in which the diamond must be set.

Tiffany seeks damages of $2 million per violation along with other fees and fines for counterfeiting from Costco and demanded a trial by jury.

GENERAL 	  

Nirav Shah Passes Away

Rapaport Belgium and the entire Antwerp diamond community are saddened by the untimely passing of Nirav Shah. Shah was an invaluable member of Kediam bvba, a manufacturing and trading company of rough and polished diamonds. Shah was 32 years old upon his death and is survived by his wife, Shweta Shah and a young daughter.

Bernard Ward Passes Away

The Birmingham Assay Office is mourning the loss of its former Assay Master, Bernard Ward, who passed away at the age of 78 on March 15 after a long illness. Ward is survived by his wife, Margaret, and his children, Val and Michael. During his 15 years at the helm of the Birmingham Assay Office, Ward reinvigorated the business and strove for exemplary customer service and boosted Birmingham as the largest assay office in the U.K. in just three years’ time. Ward received the Order of the British Empire in 1999.

DICAN Continues as Royalty Valuator

Ontarios Ministry of Northern Development and Mines (MNDM) in Canada renewed a contract with Diamonds International Canada (DICAN) Limited to continue as the diamond royalty valuator for the next three years. The new contract is similar to one signed in 2008, and was awarded to DICAN following an international bidding process. DICAN is responsible for ascertaining the gross value of diamonds produced by the De Beers Victor mine near Attawapiskat on James Bay and it also conducts a range of other diamond-auditing and consulting services on behalf of MNDM for royalty assessment purposes.

CIBJO Accredits Fiera di Vicenza 

Fiera di Vicenza was accredited through CIBJO, the World Jewellery Confederation, to plan and implement a United Nations (UN) endorsed corporate social responsibility program for the jewelry industry. The program aligns with the UNs mission of realizing its Millennium Development Goals, which is also a key element in CIBJOs formal relationship with the UN Economic and Social Council (ECOSOC). CIBJO became the first and only industry organization to receive official consultative status with ECOSOC in 2006

MINING 	  

Harry Winston Updates Resource, Sale to Swatch 

Harry Winston Diamond Corporation stated that significant new data from the processing of samples from its 2011 deep drilling program at the Diavik diamond mines A-154 north and A-418 kimberlite pipes was incorporated into the latest reserve and resource models for calendar 2012. Proven reserves for Diaviks A-154 south, A-154 north, A-418 and stockpile amounted to 33.8 million carats, while probable reserves totaled another 19.6 million carats.

The updated A-154 north model added an additional new reserve of about 500,000 tonnes of ore, while 1.3 million tonnes of probable reserve was promoted to proven status and 400,000 tonnes of new resources was defined at depth. The updated A-418 model has promoted 5 million tonnes from probable to proven reserve status. The A-154 south and A-21 kimberlite pipes were not part of the 2011 drill program and consequently there were no significant changes to their reserve and resource models, while the A-21 pipe remains just a resource for now.

The company received its required regulatory approvals to sell its luxury brand diamond jewelry and timepiece division, Harry Winston Inc., to the Swatch Group for $1 billion. The transaction is expected to close on or about March 26 at which time the mining company will change its name to Dominion Diamond Corporation.

In other news, the U.S. Patent & Trademark Office (USPTO) granted Harry Winston Inc. its request for the trademark Harry Winston Hope Collection on March 12 with the registration number of 4302682. The trademark was originally filed on March 7, 2012 and it applies to jewelry and watches.

Trans Hex Tenders Net $69M

Trans Hex achieved rough sales of $69 million (ZAR 635.9 million) for 56,587 carats for the period of October through January. The company closes its fiscal year on March 31 and will report more detailed results in June. The Somiluana diamond mine in Angola, in which Trans Hex holds a 33 percent stake, contributed $2.64 million to the total from the sale of 6,872 carats. Somiluanas production so far this fiscal year has reached 38,869 carats, while South African production amounted to 61,204 carats and Trans Hex expects to hold rough tenders for those goods in March.

Stellar Diamonds Narrows Loss to $2M

Stellar Diamonds reported a loss of $1.55 million for the six months that ended on December 31, just slightly less than the loss of $1.95 million one year earlier. The junior explorer reported no revenue for the period. The company confirmed a JORC compliant resource of 1 million carats at its Tongo project and 3 million carats at its Droujba project during the first half. Stellar Diamonds expects to begin its conceptual economic scoping studies for Tongo and Droujba this quarter and the company continues to work towards reinstatement of its Kono licenses in Sierra Leone.

Lucara Recovers 239-Ct. Diamond

Lucara Diamond recovered a 239.2-carat diamond from its Karowe mine in ‎Botswana along with two more exceptional stones, including a 124 carat and a 71.1 carat diamond. The diamonds were recovered from the central kimberlite domain, ‎which only recently became ore feed to the plant. The diamonds will be sent to Antwerp ‎to be studied prior to being sold later this year.‎

Rockwell Acquires Jasper

Rockwell Diamonds Inc. acquired the Jasper mine by settling the purchase consideration through an issuance of shares. The agreement to acquire Jasper, which is contiguous to Rockwells Saxendrift mine, also formed part of the transaction to unwind its black economic empowerment partnership with Africa Vanguard Resources. Rockwell paid approximately $221,000 to Jasper shareholders in a total of 533,332 shares at 41 cents each, which represented the five day volume weighted moving average price at the time of the agreement one year ago this month. Jaspers shareholders have agreed not to trade these shares for a period of one year. Rockwell stated it was negotiating a partnership with a new black economic empowerment partner.

Afri-Can Acquires Stake in Marine Concession 

Afri-Can Marine Minerals Corporation acquired 20% of the common shares of Thyme Investments Ltd., the sole owner of the exclusive prospecting license 3403, a marine diamond concession in Namibia, in exchange for common shares. Afri-Can Marine issued 2,437,500 shares to International Mining and Dredging Holding (IMDH) Ltd. and 812,500 shares to BV Investments Four Hundred and Nine (BVI) Ltd., the owners of Thyme Investment. IMDH and BVI will retain an 80% stake in Thyme until Afri-Can exercises its option to acquire the remaining shares, which it intends to do after concluding a diamond extraction sample program.

Additionally, Diamond Fields International signed a joint venture option agreement with Afri-Can to further develop its own marine diamond leases in Namibia. Under the agreement, Afri-Can and its local partner have the option to acquire a 90% interest in Diamond Fields offshore diamond mining leases numbered 111, 138, 139 and 32 in exchange for spending $3.3 million within two years on a program designed to place the properties back into commercial production.

STATS 	 

India

Feb. $Mil. %Chng. YTD $Mil. %Chng.
Polished exports $1,841 28% $3,530 8%
Polished imports $475 -11% $1,072 -29%
Net exports $1,366 50% $2,457 40%

Rough imports $1,313 -3% $2,300 -6%
Rough exports $171 59% $344 32%
Net imports $1,143 -8% $1,956 -11%

Net diamond account $224 $502 ECONWATCH

Diamond Industry Stock Report

Industry stocks experienced a down trend this week with Movado (-11%) showing the biggest drop in U.S. stocks, Richemont (-9%) and Theo Fennell (-9%) led losses in Europe and Goenka (-9%) led Indian shares lower. Mining shares were mixed with Lucara (+13%) and Namakwa (+20%) pulling ahead, while Stellar (-11%) led declines. View the extended stock report
Mar. 21 Mar. 14 Chng.
$1 = Euro 0.775 0.769 0.006
$1 = Rupee 54.29 54.35 -0.1
$1 = Israel Shekel 3.67 3.69 -0.02
$1 = Rand 9.31 9.17 0.14
$1 = Canadian Dollar 1.02 1.02 0.00

Precious Metals
Gold $1,615.00 $1,590.20 $24.80
Platinum $1,578.00 $1,576.00 $2.00

Stock Indexes Chng.
BSE 18,792.87 19,570.44 -777.57 -4.0%
Dow Jones 14,421.49 14,539.14 -117.65 -0.8%
FTSE 6,388.55 6,529.41 -140.86 -2.2%
Hang Seng 22,225.88 22,619.18 -393.30 -1.7%
S&P 500 1,545.80 1,563.23 -17.43 -1.1%
Yahoo! Jewelry 1,148.71 1,155.21 -6.50 -0.6%

Pěkný macek 😃 tady ho můžete vidět:
http://www.mining.com/miner-finds-239-carat-raw-diamond-in-botswana-90011/

Presunul som fotku do kategiórie najväčšie diamanty na svete.