Drosos shared her top takeaways from a recent Botswana trip and her insights into the natural diamond market.
De Beers Lowers Production Target as Demand Falters
Rough diamond production fell 14 percent in Q2, and the company has decreased guidance for the full year.
London—De Beers’ rough diamond production tumbled 14 percent in Q2 and the company is lowering its guidance for the full year in response to “subdued” demand.
The diamond miner and marketer reported Thursday that it recovered 7.7 million carats of rough diamonds in the second quarter 2019, down from 9 million in the same period last year.
The bulk of the second-quarter decline came from pre-planned cutbacks or closings.
Production in South Africa plummeted 44 percent year-over-year to 600,000 carats due to lower mined volumes at Venetia, which De Beers is transitioning from an open-pit to an underground operation, and the planned shutdown of production at Voorspoed.
The closing of Voorspoed leaves De Beers with just one diamond mine in South Africa, Venetia.
In Namibia, production dropped 35 percent to 335,000 carats due to the closure of the Elizabeth Bay mine and planned maintenance for the Mafuta crawler vessel, which mines diamonds in the ocean.
Production was down 9 percent to 1.1 million carats in Canada due to planned lower grades at Gahcho Kué, and fell 9 percent in Botswana—De Beers’ largest producing country by a wide margin—to 5.7 million carats due to a scheduled plant shutdown at Orapa.
Gahcho Kué is De Beers’ only remaining diamond mine in Canada following the planned closure of Victor in the second quarter 2019.
De Beers said Thursday that it is cutting its production guidance for the year from 31-33 million to 31 million carats in response to “weaker trading conditions.”
The diamond miner and marketer also mentioned the drop-off in demand for diamonds when reporting on sales and rough diamond prices so far this year.
RELATED CONTENT: Diamond Sales Down 33% in De Beers’ Latest Cycle
Rough diamond sales totaled 9 million carats in the first three sales cycles of the year, down 10 percent from 10 million carats in the same period last year.
“Demand for rough diamonds remains subdued as a result of challenges in the midstream with higher polished inventories, and caution due to macro-economic uncertainty, including U.S.-China trade tensions,” De Beers said.
Average realized rough diamond prices are down 7 percent from $162/carat to $151/carat, driven by a 4 percent reduction in the average rough price index and weaker conditions prompting the sale of more lower-priced goods.
The Latest
The retailer is expanding its footprint via retail partnerships, previously inking deals with Kohl’s and Macy’s.
Members will now have access to “eBay Concierge,” a white-glove dedicated customer service team.
Ho Brothers offers scalable solutions for the future of custom jewelry.
The deadline to apply is March 29.
CEO Beth Gerstein spoke about the growing appeal of its non-bridal fine jewelry and its expansion plans on its recent earnings call.
The versatile jewel pairs ancient Egyptian inspiration with a modern design.
Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.
The spring application window closes on March 31.
It’s estimated to sell for up to $1.3 million at the upcoming sale on March 28.
It aims to support aspiring journalists, media professionals, content creators, and communicators.
“Ice Cold: An Exhibition of Hip-Hop Jewelry” will open at the New York City museum on May 9.
He succeeds David Bouffard, who is leaving Signet and the RJC next month.
Three winners will have their jewelry sketches turned into a real piece of jewelry in time for the holiday.
“Power of Couture” recalls Frédéric Boucheron’s love of fabric using diamonds and rock crystal.
A Harry Winston diamond necklace and other top lots failed to find buyers.
Lilian Raji offers advice to a business owner who is having trouble crossing the finish line with customers.
He brings 30 years of retail store management experience to the role.
At its annual gala, Diamonds Do Good will present awards to GIA, London Jewelers, and Lisa Bridge.
Vibrant gemstones, layered diamond pieces and brooches with a story stole the show.
The 2024 winners expressed gratitude to their teams, industry colleagues, and those who turn jewelry dreams into reality.
They are Marla Aaron, Marie Lichtenberg, and Jean Prounis.
The Jewelers’ Security Alliance will honor the industry veteran at its upcoming annual luncheon.
The annual video stars Pomellato CEO Sabina Belli alongside Jane Fonda and other celebrities and activists.
Sponsored by IGI
The Pennsylvania native, who sold for Gumuchian and others, is remembered for being kind and outgoing.
From three-stone rings to fancy shapes, experts weigh in on what consumers could be looking for this year.