Mining News that Might Predict an Unpredictable Natural Diamond Business!
Gary Roskin –
Roskin Gem News Report –
Various Reports –
This past week has seen several gem mining news stories in Creamer Media’s Mining Weekly. If you consider them carefully, it appears that they may be predicting unpredictable natural diamond prices through the holidays. Let’s take a look.
Gem Raises Full-Year Production
Despite Prices Remaining Under Pressure
London-listed Gem Diamonds, which owns and operates the Letšeng mine, in Lesotho, has increased its production guidance for the 2024 full-year to between 98,000 ct. and 101,000 ct. being recovered and its sales guidance to between 100,000 ct. and 103,000 ct. (which is approximately a 10% increase overall – previously noted at 88,000-92,000 ct. and 91,000-95,000ct.)
“The pressure on the global diamond market persists, which negatively impacted the revenue generated during the [first half of this year]. We have, however, had great success in improving our operational outputs and cost containment, which mitigated the market impact on diamond prices.” Gem CEO Clifford Elphick says.
This is NOT a huge number of diamonds that will enter into the market.
However, it does mean that there will be more diamonds in a sector that is already saturated. – gr
Tap here to read the full story.
Same Mine – Different Story
… and pretty impressive!
Gem Recovers 129.71 ct. Diamond at Letsêng
London-listed Gem Diamonds has recovered a 129.71 ct Type IIa white diamond from its Letsěng mine, in Lesotho. This is the tenth diamond greater than 100 ct recovered from the mine this year!
As previously reported in Mining Weekly, Gem recovered a 145.55 ct Type IIa white diamond at the mine earlier this month, as well as a 123.20 ct Type IIa white diamond in June.
Tap here to read the complete feature in Mining Weekly.
BHP Doubling Down on Organic Growth with ‘Plan A’
“I am hoping that the meat we are putting on the bones of our copper growth prospects through the presentation and an upcoming site visit to Escondida will give everybody greater confidence that, when we talk about Plan A, we actually mean Plan A, and that plan is pretty attractive in its own right,” Henry concludes.
[That’s BHP CEO Mike Henry, making sure we know that they are no longer interested in Anglo American – that was Plan B – and will focus on improving what they already have. So no buyer for Anglo American and no buyer for De Beers – yet. So, is this a good thing for De Beers? – gr]
Tap here to read the full story of what BHP is up to.
Lucapa Posts 13% Increase in Interim Ebitda
Lucapa Diamond Company has reported earnings of $1.4-million for the six months ended June 30 – a 13% year-on-year increase.
The company says the higher Ebitda was achieved despite a softer diamond market, which highlights ongoing strong demand for its diamonds.
Excluding its now sold Mothae kimberlite mine, in Lesotho, the company has incurred a net loss of $1.2-million, compared with a profit of $60,000 in the first half of 2023.
The company recovered 27,362 cts. of diamonds during the six months under review, compared with the 30,927 cts. recovered in the first half of 2023.Total rough diamond sales were $35.6-million and the average price per carat $1,213/ct., compared with an average price of $1,633/ct. in the first half of 2023. [That’s roughly a 26% drop in value. – gr]
Tap here to read the spin of a 13% increase with a 26% drop.
South Africa’s Small-end Diamond Producers are Battling to Survive
South Africa’s small-end diamond producers are battling to survive in a diamond situation in South Africa, which is under severe pressure, South African Diamond Producers Organisation (Sadpo) reported on Thursday.
Sadpo chairperson Gert van Niekerk and vice-chairperson Lyndon de Meillon painted a dire picture of the current situation during a Zoom interview with Mining Weekly in which reference was made to blood being on the streets of small South African towns as a result of the global diamond crisis.
“To ensure that natural diamonds regain their shine, the industry needs to aggressively and cleverly advertise diamonds to the younger generation to embrace the natural source, age and amazing creational history of natural diamonds,” De Meillon urged.
De Meillon put South Africa’s current drastic carat reduction situation mainly down to price. … This is because the current price crisis in the diamond industry as a whole is partly the industry’s own doing, and partly due to external circumstances, unfortunately both combining at the same time to create the perfect storm, driving prices down, probably for the longest period since the Great Depression of the 1930s.
This article goes on to talk about De Beers stepping back from global advertising. Then the entrance of Lab Grown diamonds into the mix. Then Covid, then inflation, then playing catch-up. And now, with a glut of diamonds in the market, the small mines are getting squeezed. – gr
Tap here to read the full story in Mining Weekly
