TechnologyApr 15, 2024
Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move ForwardJoyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
SourcingAug 11, 2020
Lucara’s Q2 Sales Drop as It Holds onto Big Stones
The diamond miner has inked a partnership with Antwerp-based cutter HB Group to buy all its diamonds weighing more than 10.8 carats for the rest of 2020.
Lucara Diamond Corp. operates the Karowe Mine in Botswana, shown here. Normally, about 70 percent of the company’s annual revenue comes from the large, high-value diamonds it recovers from its mine, but it deferred those sales in Q2 because of market weakness. (Photo courtesy of Lucara)
Vancouver, British Columbia—Revenue fell significantly in the second quarter for Lucara Diamond Corp., as the miner opted to hold onto 10-carat-plus diamonds in light of “weakened market demand,” CEO Eira Thomas said Monday.
Lucara, which operates the Karowe Mine in Botswana, recorded total revenue of $7.5 million in Q2 2020, or $109 per carat, down from $42.5 million ($417 per carat) in the same period last year.
The miner sold 68,979 carats in Q2, down from 101,931 carats in the second quarter 2019 as, beginning in early March, it opted to sell only diamonds below 10.8 carats.
The per-carat price garnered for these smaller diamonds reflects the overall erosion in prices for rough diamonds, Lucara said.
The company recorded a net loss of $13.9 million, down from net income of $700,000 in the same period last year.
Lucara continued to operate its Karowe Mine throughout the pandemic, with the mine’s managing director, Naseem Lahri, explaining in an earlier interview with National Jeweler how she adjusted operations to ensure employees could work remotely or were social distancing.
Lucara processed 0.71 million tons of ore and recovered 101,203 carats in Q2.
This included 201 “specials” (diamonds weighing more than 10.8 carats), with the miner finding nine diamonds weighing more than 100 carats and two weighing more than 200 carats.
Back in July, Lucara announced a new partnership agreement with Antwerp-based diamond cutter HB Group, the same company that is cutting Sewelô, the 1,758-carat diamond Louis Vuitton is slated to make into jewelry.
For the rest of 2020, HB Group will buy all the diamonds from Karowe that weigh more than 10.8 carats.
Under the supply agreement, the miner’s 10.8-carat-plus production will be sold at prices based on the estimated polished outcome of each diamond, which will be determined through state-of-the-art scanning and planning technology.
A true-up (match) will be paid on actual achieved polished sales, less a fee and cost of manufacturing.
As of June 30, HB Group paid Lucara a deposit of $13.5 million for a portion of the goods to be delivered under the agreement.
More on Sourcing
The Latest
IndependentsApr 15, 2024
Alfred W. DeScenza of DeScenza Diamonds Dies at 95He is remembered by loved ones for his loyalty, integrity, and kindness.
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to AuctionHosted by Freeman’s | Hindman, the sale will take place May 7-8.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an HourThe auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
Weekly QuizApr 11, 2024
This Week’s QuizTest your jewelry news knowledge with this seven-question quiz.
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About InsuranceFrom cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone CharmThe charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship WinnersAhead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFairMembers can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
IndependentsApr 11, 2024
Steven Rosdal, Co-Founder of Hyde Park Jewelers, Dies at 77He is remembered for his charisma, passion, integrity, kindness, and wit.
MajorsApr 11, 2024
Macy’s Opens Books for Possible BuyoutThe retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.
CollectionsApr 10, 2024
Sylvie Launches New Nature-Inspired Collection, ‘Tulira’The bridal collection consists of 35 engagement rings and seven wedding bands.
WatchesApr 10, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
IndependentsApr 10, 2024
Levy's Fine Jewelry Explores Diamond History The family-owned jeweler has a new education section on its website dedicated to the history of diamond cutting.
CollectionsApr 10, 2024
With Clarity Partners With NFL on Wedding Bands The limited-edition men’s rings can be customized with one of 12 team logos.
WatchesApr 09, 2024
Chrono24 Debuts Pre-Owned Watch Authentication ProgramThe program, now live in Europe, will roll out to the U.S. this summer.
AuctionsApr 09, 2024
Phillips to Offer 6.21-Carat Vivid Pink DiamondColored gemstones and signed jewels are the focus of its upcoming Geneva sale.
MajorsApr 09, 2024
Jewel360 Announces New POS Integration, JFC PartnershipThe point-of-sale software can now prompt customers to round up their credit card purchases as a donation to Jewelers for Children.
SourcingApr 09, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.
SourcingApr 08, 2024
Charles & Colvard Debuts B2B Portal for MoissaniteSelect independent jewelers and retailers can now purchase moissanite through Charles & Colvard Direct.
Events & AwardsApr 08, 2024
AGS Announces First Recipient of ‘Women in Leadership’ ScholarshipAmber Rank of Exclusively Diamonds will receive mentorship, registration to AGS’s 2024 Conclave, and $500.
AuctionsApr 08, 2024
Sotheby’s ‘Rough Diamonds’ Sale Is All About … WatchesThe auction will take place Thursday and is underground, literally.
Events & AwardsApr 08, 2024
JOGS Show Returns to Las Vegas for a Second YearThe trade show is moving downtown to the Expo at World Market Center.
Lab-GrownApr 08, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.
