ColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire BrandsWhy do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
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.
Editors' Picks
Sponsored by
More on Sourcing
The Latest
AuctionsMay 15, 2024
Red Diamond Breaks Records at Phillips GenevaThe “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
Events & AwardsMay 15, 2024
See Who’s in JA’s 2024 ‘20 Under 40’ ClassThe annual list recognizes young professionals making an impact in jewelry retail.
Brought to you by
Record Gold Prices Have Consumers Undeterred. Here’s Why.Despite the rising prices, consumers continue to seek out the precious metal.
IndependentsMay 15, 2024
David Mann Jewelers in Upstate NY to Close After 35 YearsOwner David Mann is heading into retirement.
Weekly QuizMay 09, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
FinancialsMay 15, 2024
Brilliant Earth’s Sales Fall Flat in Q1 While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
AuctionsMay 14, 2024
2 Huge Yellow Diamonds Are Heading to AuctionChristie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
MajorsMay 14, 2024
Platinum Born Taps ‘Born Leaders’ for New CampaignThe ad aims to position platinum jewelry as ideal for everyday wear.
GradingMay 14, 2024
Instappraise Adds Trifold Brochure to Appraisal OfferingsRetailers can customize and print the appraisal brochures from their store.
Lab-GrownMay 13, 2024
Lab-Grown Diamond Brand Lightbox Cuts Prices by 25 to 40%The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
TechnologyMay 13, 2024
Christie’s Website Brought Down by Hackers, Watch Auction Postponed The site has been down since Thursday evening, just ahead of its spring auctions.
AuctionsMay 13, 2024
Madeleine Albright’s Jewelry, Pins a White-Glove Sale at Freeman’s | HindmanThe late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
IndependentsMay 13, 2024
Zachary’s Jewelers Names Mother’s Day Jewelry Contest WinnersThree fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
MajorsMay 09, 2024
Watches of Switzerland Pays $130M for Roberto Coin Inc.The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
IndependentsMay 09, 2024
Kyle Edward Fine Jewelry to Close Salisbury StoreThe company’s Easton location will remain open.
MajorsMay 09, 2024
JBT Elects New ChairmanBrian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Supplier BulletinMay 08, 2024
Fusing Past and Present at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry and Watch Show
EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
AuctionsMay 07, 2024
Sotheby’s to Auction Sylvester Stallone’s WatchesThe highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
