164-ct letšeng diamond sold for $9 mn - solitaire …164-ct letšeng diamond sold for $9 mn gem...

164-ct Letšeng Diamond Sold For $9 MnGem Diamonds sold a 164-carat D colour diamond for $9 million, or $54,911 per carat. The type IIa diamond was recently recovered from the main pipe at the Letšeng mine.

The sale was made on a profit sharing basis whereby the rough price was received upfront. Letšeng Diamonds will benefit further from a significant share of the downstream polished margin from

SPECTRUM

22 solitaire INTERNATIONAL juLy 2013

the sale of the polished diamonds.

Gem Diamond’s CEO Clifford Elphick commented, “The recovery and sale of this high quality 164-carat white diamond reinforces Letšeng's position as the premier source of exceptional diamonds.”

In May 2013, the company recovered a 103-carat diamond which will be sold in the next tender.

Alrosa Acquires Alluvial Diamond Miner Nizhne-LenskoeAlmazy Anabara, a wholly-owned subsidiary of Alrosa, acquired complete ownership of the alluvial diamond mining company Nizhne-Lenskoe on June from the Republic of Sakha (Yakutia) for a cash consideration of RUB7 billion.

Almazy Anabara purchased 51% of Nizhne-Lenskoe for RUB3,670 million in January and the other 49% of Nizhne-Lenskoe on June 5 for RUB3,330 million. The deal was financed by new short-term debt.

Alrosa’s recent acquisition is in line with the strategy for value growth of their diamond business. Alrosa aims to use its experience to optimise operational and sales performance of Nizhne-Lenskoe.

Bipasha Basu Inaugurates Maya Jewels Store In KochiBollywood diva Bipasha Basu inaugurated the second exclusive Maya Jewels store in Kochi, Lulu mall. The multi-brand jewellery showroom brings together the best jewellery with brands like Maya Gold, Maya Diamond, Nakshatra, D’Damas, Asmi, Parineeta amongst others.

This is Maya Jewels 24th store in India, and marks a new phase of aggressive expansion in pan-India after

opening stores in Hubli, Mumbai, Delhi, Ghaziabad, Chandigarh and other cities. Lulu mall, Kochi marks a major milestone in adding to the ever increasing footprint of Maya Jewels by Gitanjali.

The store will also offer facilities like jewellery cleaning, jewellery testing and melting and has also introduced two monthly saving schemes – Shagun and Swarna Mangal.

SPECTRUM


s a part of Rio Tinto’s ‘Diamonds with a Story’ initiative, a unique showcase of diamond

jewellery was displayed at the JCK Las Vegas show. The jewellery, designed for the US market by eight world-class North American designers, is part of an innovative marketing programme encompassing consumer research and creative collaborations with designers, manufacturers and retailers.

According to Bruno Sane, general manager of Marketing for Rio Tinto Diamonds, “Diamonds with a Story’ is the umbrella signature of our global market development initiatives in both established and emerging markets. It also recognises that diamonds are not commodities, that every diamond has a story worth telling which consumers are keen to hear.

“The JCK Las Vegas jewellery show provides the perfect opportunity for us to showcase a new initiative under the ‘Diamonds with a Story’ umbrella, which will then be implemented in relevant formats in the all-important Indian and Chinese markets in the next 12 months.”

Extensive consumer research conducted by Rio Tinto Diamonds in the US has led to the development of four stories, concepts, and ultimately collections that encompass Rio Tinto’s rich palette of diamonds, and that speak directly to the US consumer.

The stories – Shaped by Origin, Cutting Impact, Mixed Medium and Color My World – have resulted in jewellery collections that address identified consumer’s desire to know more about the diamond they are purchasing.

According to Rebecca Foerster, manager of Rio Tinto Diamonds US Representative Office, “Whilst the US is a

A

Rio Tinto Displays

Las Vegas

“DiamonDs With a story”Initiative In

mature market for diamonds, it is a market that is constantly evolving and we are excited by how well the ‘Diamonds with a Story’ platform is resonating. This appetite for innovation is good news for miners, manufacturers, retailers and ultimately the consumer”.

Ring from the Shaped By Origin Dreamcatcher collection by David Zoltan.

Pendant from the Shaped By Origin Dreamcatcher collection by David Zoltan.

Earrings from the Cutting Impact Pure Flight collection by Alexandra Hart.

Ring from the Cutting Impact Pure Flight collection by Alexandra Hart.

SPECTRUM

Vicenzaoro Promotes ‘Made In Italy’ Jewellery At JCK

Italian-made gold and jewellery was a star player at the JCK Show in Las Vegas, America's number one jewellery show, which came to a close on June 3. The exclusive Las Vegas Mandalay Bay Convention Center provided the new international setting for the 130 companies (20% of which were participating for the very first time) from the main Italian gold production poles, Vicenza, Valenza, Arezzo, Naples, Marcianise and Torre del Greco and Milan.

Companies expressed their satisfaction on achieving good business

results with the US retailing sector, a success that further confirmed renewed interest in Italian jewellery, synonymous the world over with quality and design.

In Las Vegas for the eighth year running, Fiera di Vicenza once again presented its Vicenzaoro Italian Club travelling format, where the spotlights were not only on high range jewellery collections, but also on more accessible items on show that combine noble and innovative materials to create unique items and designs. The 2013 Edition of Vicenzaoro Italian Club enhanced its

particular format through exhibition layouts enriched with designer fittings giving the entire context a touch of elegant Italian style.

Fiera di Vicenza along with the Los Angeles ICE Agency also organised six ‘Catwalk – Italian Jewellery on Trend’ during the JCK Show.

Trend Area's "Inspirations 2014 – Mutations” made its debut at Luxury@JCK, the showcase specifically for international jewellery's most exclusive brands, which took place in the lead-up to the JCK Show. With its own special exhibition area, Trend Area

explored the directions in which style, materials, working methods and consumer behaviour are heading and which are bound to have a significant influence on the luxury industry.

Traders were able to preview the new trends for 2014, identified by the Trendvision Jewellery + Forecasting team, Fiera di Vicenza's independent international forecasting centre. The four moods of jewellery trends for the coming 2014 season are: experimental nature, shadow reality, ethno pop and visionary structures.

Donna Baker Resigns As President And CEO of GIADonna M. Baker, president and CEO of the Gemological Institute of America (GIA) tendered her resignation. The company’s Board of Governors announced today that due to differing views on the direction of GIA, Donna Baker would no longer serve as the president and CEO of the institute. At the request of the Board of Governors, board chair Susan M. Jacques, president and CEO of Borsheims Fine Jewelry and Gifts, will be serving as the interim president and CEO while the board conducts a search for a new executive.

Tom Moses, senior vice president of Laboratory and Research will continue overseeing all of GIA’s global laboratory operations while Bev Hori, vice president of Education and Chief Learning Officer, will continue to lead GIA’s gemmological and industry education efforts.


SPECTRUM

Alrosa’s mining subdivisions produced 7.48 million carats of rough diamonds in the first quarter of 2013, reported the firm’s executive committee as they presented the consolidated budget for the quarter.

Against the background of the decreased supply by global producers, the increased demand on the rough and polished diamonds market in the first three months of the year allowed Alrosa to achieve high rates in rough diamond sales. The aggregate sales of rough and polished diamonds by the group in the quarter amounted to $1.215 billion, 5% above the same parameters in the

Alrosa Produces 7.5 Million Carats Of Rough In Q1 2013

informed their deal with Sotheby’s, to sell large and unique diamonds manufactured by the company’s branch Brillianty Alrosa through Sotheby’s auctions in order to further

first quarter of 2012.

Having insignificantly adjusted rough diamond prices in the first quarter, Alrosa fixed the current level of the cost of rough diamonds being sold. The company’s conservative pricing policy is conditioned by the necessity of maintaining a moderate demand on the diamond market formed by April 2013.

The company also

promote the brand as well as optimisation of the company’s cutting and polishing complex. The diamonds will be certified by the Gemological Institute of America (GIA).


IGI Mumbai Moves Operations to Bandra-Kurla Complexcentre of operations to the new diamond bourse – better and more efficiently.

The office was inaugurated by Vipul Shah, chairman of the Gems and Jewellery Export Promotion Council (GJEPC) and guest of honour, along with IGI Worldwide Co-CEO Roland Lorie and other prominent industry members.

IGI will offer full industry services from its new location at the Diamond Bourse and will offer an entirely new customer experience, including Tatkal, a special one-day option for urgent deliveries. It will also offer pick-up and drop-off at both, its bourse location and at customers’ offices.

“The Bandra-Kurla office will offer state-of-the-art facilities, upgraded systems and convenient delivery options for our clients,” said Tehmasp Printer, managing director, IGI India. “Operating full-service facilities at four prime locations in Mumbai, we offer the competitive advantage of

being closer to diamantaires’ offices, as well as jewellery manufacturers’ factories. Our singular focus is to offer better and more efficient services,” Printer concluded.

GJEPC chairman Vipul Shah lights the ceremonial lamp as Roland Lorie (extreme left) and Tehmasp Printer (extreme right) look on.

The International Gemological Institute has shifted its base to The Capital in Bandra-Kurla Complex. The move is aimed at serving the industry – which is gradually moving its

SPECTRUM

Kristall Celebrates 50th Anniversary In Style

Tokyo Diamond Exchange Completes 20 Years

character of Kristall and lauded the determination of both the management and employees, to preserve the family spirit and dedication of generations. During a ceremony at the Smolensk Theatre for Performing

Kristall Production Corporation (KPC), a leading diamond manufacturer celebrated its 50th anniversary on May 24, in Smolensk, in the presence of an impressive delegation of Russian federal and local government representatives, industry partners, local and trade media as well as with international representatives from the diamond manufacturing hubs in Belgium, China, Israel, Thailand and Sri Lanka.

In his congratulatory speech, Alexei Ostrovsky, governor of the Smolensk Region, noted that Kristall's perseverance and stability during the past 50 years had led to the creation

Ernie Blom, president of the World Federation of Diamond Bourses (WFDB), congratulated the Tokyo Diamond Exchange and its president, Michio Iwasaki, on its 20th anniversary. “The Tokyo Diamond Exchange is a valued member of the WFDB and as such forms a part of the 28 international diamond bourses from around the world that make up the WFDB, the pre-eminent body looking after the interest of the diamond industry on a worldwide basis,” a statement read.

and recognition of the ‘Russian Make’ as Kristall is a world renowned brand. "These diamonds are manufactured right here in Smolensk and they are diamonds produced by the Russian Federation. If there is something we should be proud of in Russia, it is this factory," Ostrovsky stated.

Since its establishment in 1963, the company has polished 80.5 million diamonds with a total weight of 9.3 million carats. The government-owned firm specialises in top-quality cutting and polishing, and markets the Triple X Russian Cut.

Maxim Shkadov, CEO of KPC hailed the special

Arts, many outstanding employees were honoured for their contributions. One employee received special recognition, as together, he and his family members had worked at Kristall for a total of 150 years.

Maxim Shkadov (left) and Alex Popov at a gala function.

© A

shes

tosk

y |

Dre

amst

ime.

com

GIA Alumni Africa Chapter Hosts ‘Synthetic Diamonds and Treatments’As part of the Gemological Institute of America’s (GIA) commitment to educating the public about gemmology, Leslie Milner, director of GIA’s laboratory in South Africa, presented ‘Synthetic Diamonds and Treatments’ to the GIA Alumni Africa Chapter and other members of the industry on Saturday, May 18 in Pretoria, South Africa.

Advancements in diamond treatments and the production of synthetic gems are important issues for the gem and jewellery industry across the globe. Milner

discussed the latest developments in treated and synthetic diamonds to a full room at the Pretoria Gem and Mineral Club House, and addressed questions surrounding the ‘undetermined’ origin of colour and the terminology for synthetic diamonds. The presentation – which was open to the public – was an extension of GIA’s efforts to bring industry-leading education, research and laboratory services to the diamond and gem industry in Africa.

SPECTRUM

Gemfields Puts Singapore Auction On HoldGemfields reported that the Singapore auction, which was scheduled to be held from June 10 to 14, has been put on hold, pending clarification from the Zambian ministry of mines, energy and water development regarding the

the media and distributed a press statement seemingly restraining the Kagem emerald mine (and other producers) from auctioning emeralds outside of Zambia. Kagem is 75% owned by Gemfields, with the other 25% belonging to the government of Zambia.

Gemfields said it is actively corresponding with the ministry and hopes that solutions supporting the continued growth of Kagem and the wider Zambian emerald sector will be reached as soon as possible.

Ian Harebottle, CEO of Gemfields, commented, “While there is presently no law in Zambia that prohibits the export of emeralds for auction purposes, we naturally

wish to ensure that we work collaboratively with the government of Zambia, who are our fellow-shareholders in the world-class Kagem emerald mine. Figures recently released by the Zambian Revenue Authority show that Kagem pays approximately 80% of the gemstone sector's aggregate royalties and that, last year alone, Kagem paid about 40% of the total cumulative gemstone royalties collected in the seven-and-a-half years since 2006. As such, there is a strong incentive for all parties to ensure that the remarkable growth Kagem has enjoyed in recent years – and the benefits that this growth has provided for the wider Zambian gemstone sector – are not impeded.”

proposed restrictions on certain forms of emerald exports.

At a press conference in Lusaka on April 5, 2013, Yamfwa Mukanga, the minister of mines, energy and water development addressed members of

The Kagem mine in Zambia.


Rio Tinto Unveils Limited Edition Argyle Pink Diamond Ingot Rio Tinto released a limited edition pink diamond ingot to commemorate the opening of the Argyle Underground Mine. Unearthed and polished to perfection, a selection of these pink gems have been meticulously hand set in a 1oz bed of pink gold crafted by the Perth Mint.

Argyle’s pink diamonds were formed more than a billion years ago deep below the earth’s surface under the ancient boab trees in the East Kimberley region of Western Australia. To symbolise their origin, the ingot depicts a boab tree embedded with six Argyle pink diamonds. Each ingot is individually numbered.

“We are delighted to partner with the Perth Mint on the exclusive release of this distinctive investment piece. It is a beautiful symbol of the unique Argyle story and the recent milestone commencement of underground mining,” said Kim Truter, managing director of the Argyle Diamond Mine.

Valued at A$4,880, only 168 individually numbered Argyle Pink Diamond ingots will be released for sale worldwide. Each ingot is accompanied by a numbered certificate of authenticity.

SPECTRUM

Dominion Diamond Corporation Profits Soar In Q1

IGI Introduces QR Codes to Accompany Certified Jewellery

Toronto-based Dominion Diamond Corporation recorded a consolidated net profit of $500.2 million or $5.89 per share for the first quarter of fiscal 2014, a sharp rise compared to $11.6 million or $0.14 per share in the same period last year.

This includes the $497.6 million gain from the sale of the Harry Winston Luxury Brand segment. Net profit from continuing operations attributable to shareholders (which now represents the Diavik and Ekati mining segments) was $2.8 million or $0.03 per share compared to $6.0 million or $0.07 per share in the comparable quarter of the prior year.

Consolidated sales from continuing operations were $108.8 million for the quarter which was further divided into $88.9 million from the Diavik Diamond Mine and $19.9 million from the Ekati Diamond

The International Gemological Institute (IGI) will provide QR (quick response) codes for IGI-certified jewellery. The code will link to an article’s unique IGI report, which can be conveniently viewed with a smartphone.

The IGI QR codes will not only assist sales associates in communicating relevant gemmological grading information – 4Cs (cut, colour, clarity and carat), authentication of precious metals, etc. — but will also be directly available to consumers, assuring them of an item’s quality.

As part of the certification process, the QR code will be included within the IGI Seal of Inspection/Standard of Excellence, affixed to each article along with hard copy reports.

“We are eager to bring additional benefit to both retailers and consumers by offering a real-time way to access a unique IGI report, as this is a crucial step in the fine jewellery buying process,” said IGI president and CEO Jerry Ehrenwald.

Mine. The company noted that Ekati rough diamond sales were only from the date of acquisition, April 10 to the end of the quarter.

Diavik sales were consistent with the prior quarter. The 29% increase in achieved rough diamond prices was offset by a 23% decrease in volume of carats sold during the quarter. Diavik rough diamond production during

the first quarter was 21% higher than the comparable quarter last year.

Gross margin increased 44% to $27.3 million from $18.9 million in the comparable quarter of the prior year. The company noted that the quarter began with a stable market for both rough and polished diamonds as a result of improved market conditions at the end of fiscal 2013.

With the exception of high demand in the lower-priced ranges, polished diamond prices remained flat, restricting the upward movement in rough diamond prices at the end of the quarter. The retail jewellery market outlook remains

positive, led by the resilient US market. The East Asian and Indian markets were less positive but the market still anticipates resurgence in demand in the second half of the year. At the recent show in Basel, Switzerland, better-quality, larger goods sold well, but less interest was evident in the smaller sizes of polished goods commonly used in watches.

Ekati diamond mine.

© B

urne

dflow

ers

| D

ream

stim

e.co

m


SPECTRUM

Richemont’s Jewellery Divisions Make Up 51% Of SalesRichemont’s jewellery sales account for 51% of the group’s sales in the first quarter ended March 31, 2013. The company’s sales figures increased 14% to €10. 50 billion from €8.86 billion last year while operating profit increased by 18% to €2,426 million.

Richemont Group, whose luxury goods interests encompass some of the most prestigious names in the industry, including Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Alfred Dunhill, Montblanc and Net-a-Porter witnessed solid growth across segments, regions and channels.

In the quarter, jewellery sales totalled €5.2 billion, a rise from €4.59 billion in the same period last year. The group’s watch brands accounted for 27% of the

sales with a total of €2.7 billion in the quarter. The company recorded a 30% rise in net profit to €2 billion.

Richemont Group's chairman Johann Rupert commented, “We are pleased to report that Richemont has achieved solid sales growth across all segments, geographic regions and channels during the year. The jewellery maisons and the specialist watchmakers have reported remarkable growth in sales and profits, despite the continuing strength of the Swiss franc and historically high cost of precious metals and stones.”

“These performances reflect the commitment and efforts of all our colleagues, the strength of our maisons and the efficiencies provided by the Group’s shared service platforms,” he addded.

During the year, Richemont also made several acquisitions, amounting to € 474 million. The company acquired Varin-Etampage & Varinor, a Swiss manufacturer of

precious metal products for the watch and jewellery industry, and Antica Ditta Marchisio SpA, an Italian company specialising in the production of hand-crafted jewellery.

Richemont headquarters in Bellevue, Geneva.

Israel Diamond Week To Be Held In AugustFollowing two resounding successful diamond weeks, the Israel Diamond Exchange (IDE) and the NY Diamond Dealers Club (DDC) have taken another step forward with the Summer Edition of the US/International Diamond Week scheduled for August 26-29 in Ramat Gan.

The respective presidents of the IDE and the DDC, Yair Sahar and Reuven Kaufman, have called upon diamond traders to save the date for the Diamond Week and ensure their benefiting from a worldwide

initiative for commerce in loose diamonds, in perfect timing for renewing their diamond inventory with brand new goods, directly from manufacturers, before the Hong Kong Fair and the holiday season.

The event will take place in the IDE trading hall, furnished with state-of-the-art equipment. It will exhibit a vast range of loose diamonds of every size, colour, and type, totalling more than a billion dollars in value at attractive prices suited to the trade.

IDE president Yair Sahar

said, “After the amazing cooperation between our bourse and the NY DDC, which brought hundreds of diamond traders from all over the world to Israel, in direct contact with hundreds of Israeli companies – large, medium and small – Reuven Kaufman and I agreed that we must take advantage of this enormous success for the benefit of all bourse members and authorised diamond traders worldwide.

“Diamond traders have a need for this kind of show – it presents a unique

business platform, the first of its kind in the world, at minimum cost and with maximum security – with no need for costly booths, advertising and marketing expenses.”

Participants in the previous Week said that the IDE-DDC cooperation had created a remarkable synergy between the Israel and NY Exchanges. At the conclusion of the Spring Edition of the Diamond Week, many participants said that they would come back for future Diamond Weeks.


SPECTRUM

Strong Surge In Sales For Gitanjali In Q4 2012-13Gitanjali Group recorded a 34% rise in their sales turnover in the quarter ended March 31, 2013. The jewellery group’s sales figures for the quarter stood at R4750 crore, up from R3,532 crore in the previous quarter. Net profit for the quarter rose 15.5% to 118.9 crore.

The third quarter, witnessed a surge in sales on the back of a strong festive and wedding season with the greater number of auspicious days for marriages also contributing to the increased level of activity. Christmas and the New Year were prime drivers for growth internationally and this momentum continued through the fourth quarter as well. Jewellery sales accounted for 69% of the revenue followed by the diamond segment.

In the year, the company achieved net sales of R16,418.5 crore over

R12,498.3 crore last year, registering a growth of 31%. During the financial year 2013, the gold jewellery category sales grew significantly. However, in coming years the company’s focus remains on diamond jewellery and precious stones which are expected to expand by 30-40%.

The domestic market accounted for 58% of the total revenue in the year. The company continues to look at US and Japan as strong international markets that not only offer high margins at the front-end, but also offers additional margins to the manufacturing and supply chain in India.

Net profit increased to R591.7 crore, as against R487.3 crore, achieving a growth of 21% on a year-on-year basis. The company’s inorganic expansion led to its acquiring two popular jewellery brands, ‘Nirvana’ and ‘Viola’ in the year.

Commenting on the company’s performance, Mehul Choksi, chairman and managing director, Gitanjali Gems Ltd. said, “The diversified portfolio of channel mix, category mix and geographic mix has contributed to the desired growth. We remain focused on the quality of growth to achieve better realizations

from our branded jewellery business.” Choksi further added, “India is our key market with immense opportunity. We have added a significant number of franchisees and own stores especially in the Tier 2 and 3 towns of the country and we see a continuous expansion in these channels throughout India.”

TBZ – The Original Posts A Whopping 231.22% Rise In Q4 Profits Tribhovandas Bhimji Zaveri Limited – The Original (TBZ) posted a net profit of R24.99 crore for the fourth quarter of the 2012-13, up 231.22% from the R7.64 crore in the same period last year. TBZ’s total income rose to R447.33 crore in the quarter, up 67% from R268.09 crore in the corresponding period last year.

TBZ’s net profit margin improved 5.59% in the quarter and 5.13% in the year on account of strong sales growth, an optimal sales mix of gold and diamond wherein diamond jewellery sales enhanced the margins.

For the year, the company posted a 48.62% rise in their net profit to R85.00 crore. Total income for the year increased 20% to R1,658.34 crore, for the year ended March 3, 2013.

The company achieved an impressive top line and bottom line growth year-on-year despite tough economic conditions and volatile gold prices.

Shrikant Zaveri, chairman and managing director, TBZ, said, “The objective of the IPO was to expand in newer markets and we have fulfilled our first year commitments by opening 11 new stores this year. I am happy that in spite of adverse market conditions, we have done well.”


SPECTRUM

WDC Supports Decision To Suspend CAR From KP

Silver Jewellery Demand Declines In 2012

Eli Izhakoff, president of the World Diamond Council (WDC) supported the decision issued by Ambassador Welile Nhlapo, chair of the Kimberley Process, to temporarily suspend the Central African Republic (CAR) from the Kimberley Process Certification Scheme.

“This is a tough but appropriate measure that will defend both the integrity of the diamond pipeline and, also, ultimately the wellbeing of the people of the Central African Republic,” Izhakoff said. “It is a procedure which has shown itself to be effective in the past. I call on all members of the industry to be vigilant and take all necessary measures to ensure that, until further notice from the KP, no rough diamonds from the CAR are handled and or traded.”

In his communique, Nhlapo said that following due diligence, which included the issuance of a vigilance notice in March and a vote by KP members, he had decided to suspend the CAR with immediate effect.

Jewellery and silverware demand, the largest single category of demand, declined 1.4% to 300 million ounces last year as per the Silver Yearbook 2013. The book, recently released by CPM concludes that fabrication demand for silver fell 1.8% to 858.9 million ounces last year. A decline in demand from the photography, jewellery, and photovoltaic sectors more than offset an increase in demand from the electronics, housing, and other sectors.

Weak economic conditions in India and Western Europe weighed on jewellery and silverware demand last year. While this source of demand is price-sensitive and typically in a declining price environment, demand would rise, jewellery demand also is very income-sensitive. Declines in disposable

© T

hom

as S

abo

their views since April 2011 about how and when to purchase the metal.

Investors have become increasingly price-sensitive, still willing to buy and still interested in buying silver, but rather than buying the metal in a rising price environment with strong expectations for higher prices, investors now are commanding price dips in order to build long positions in silver.

incomes in these areas offset the positive influence of lower prices on silver jewellery and silverware demand last year.

India accounts for 10.4% of total silver fabrication demand and 17.0% of jewellery and silverware demand. Recessionary conditions in Europe during 2012 were also responsible for the softening in silver fabrication demand. Western Europe accounts for 17.7% of fabrication demand, which was down 7.3% during 2012, compared to 2011.

Investment demand for silver rose 32.1% to 122.5 million ounces in 2012. This was the sixth highest annual volume of demand from investors on record. Investors remained interested in silver, amid concerns about U.S. fiscal issues, European sovereign debt concerns,

and a slowdown in Chinese economic growth.

CPM Group, an independent commodities research, consulting and corporate advisory company based in New York, finds that while investors have not changed their positive views of silver as a good portfolio diversifier, a hedge against inflation and currency depreciation, and a safe haven, similar to gold, they have changed


SPECTRUM

Signet Witnesses A Surge In Q1 E-commerce Sales

Rio Tinto Retains Diamond Business

The Leo Diamond range is available exclusively at Signet stores in the US and UK.

© N

ewsc

ast

Signet Jewelers Ltd, the largest speciality retail jeweller in the US and the UK recorded a 10.4% rise in their first quarter fiscal 2014 sales to $993.6 million, up $93.6 million in the corresponding period last year. E-commerce sales rose 40.7% to $31.1 million compared to $22.1 million last year, while the company witnessed a 6.4% rise in same store sales.

The US accounted for $858.6 million in sales while in the UK division, sales totalled $135 million. While US market sales rose by 14.3%, UK sales dropped 9.1% in the quarter.

Gross margin stood at $382.8 million or 38.5% of sales compared to $353.7 million or 39.3% of sales in the same period last year. The company’s net income increased 11.3% to $91.8 million while diluted earnings per share increased by $0.17 to $1.13, up 17.7%.

Mike Barnes, CEO, Signer Jewelers commented, "We were very pleased with our results throughout the quarter, including Valentine's Day and the run up to Mother's Day. Our strong sales for these time periods were driven through excellence in execution by our associates, customers' acceptance of our great merchandise offerings, and the continued effectiveness of our iconic advertising initiatives. These terrific results were achieved by our team's consistent ability to execute our initiatives by focusing on our competitive strengths. We believe this leaves us well-positioned to achieve our financial objectives for this year.”

The company utilised their stock buyback authorisation and repurchased $50.1 million of Signet shares during the first quarter.

Rio Tinto has decided to retain its diamonds businesses after concluding a strategic review which considered a range of options, including potential divestment.


Rio Tinto Diamonds & Minerals chief executive Alan Davies said, “The medium to long-term market fundamentals for diamonds remain robust, fuelled by growing demand

for luxury goods in Asia and continuing strong demand in North America.

“We have valuable, high-quality diamonds businesses that are well positioned to capitalise on the positive market

outlook. After considering a number of alternative strategic ownership options it is clear the best path to generate maximum value for our shareholders is to retain these businesses.”

Rio Tinto operates a fully integrated diamond business from exploration through to sales and marketing. It has 100% ownership of the Argyle mine in Australia, 60% of the Diavik mine in Canada and a 78% interest in the Murowa mine in Zimbabwe. Rio Tinto also has an advanced diamond project, Bunder, in India.

Rio Tinto’s share of the production from its three operating diamond mines is sold through its sales and marketing headquarters in Antwerp, with representative offices in Mumbai, Hong Kong and New York. It also operates a niche cutting and polishing factory in Perth for the rare pink diamonds from its Argyle mine.

SPECTRUM

Tiffany’s Q1 Performance Exceeds Expectations

Rendering of Tiffany’s new showroom in Moscow’s GUM department store.

Luxury jeweller Tiffany & Co. reported a 9% increase in worldwide net sales to $895 million in the first quarter that ended April 30, 2013. Same store sales rose over 8%. Net earnings increased 3% to $84 million versus the prior year's $82 million. Expenses of $9 million, or $0.05 per diluted share, were recorded in the quarter for recent staff and occupancy reductions; excluding those costs, net earnings increased 10% to $89 million, or $0.70 per diluted share.

Michael J. Kowalski, chairman and chief executive officer, said, "We are pleased with this start to the year. Worldwide, first quarter sales exceeded our expectations, enabling us to improve our sales leverage on fixed expenses and achieve earnings growth.”

Sales in the Asia-Pacific region grew 15% to $223 million while that in the Americas were 6% higher than in the previous year. Gross margin was 56.2% versus last year's 57.3%. As expected, the decline continued to reflect a shift in sales mix towards higher-priced, lower gross margin products. In addition, gross margin, in comparison to recent quarters, benefited from diminished product cost pressure and recent price increases.

During the quarter Tiffany opened one store, in Xi'an, China and closed one in Taichung, Taiwan. As of April 30, 2013, the company operated 275 stores worldwide.

Kowalski added, "While first quarter sales and earnings exceeded our expectations, we are maintaining our earnings forecast for the full year, mindful of continuing soft sales results in the Americas and the negative translation effect of a weaker yen. However, we remain

focused on exciting initiatives for this year, including jewellery introductions highlighted by our Great Gatsby and Ziegfeld collections, the Harmony engagement ring and a reinterpretation of our iconic Atlas collection.”

Tiffany also plans to open a two-level store in Moscow’s GUM department store, the city’s premier destination for luxury shopping and a centre for art and culture, located in Red Square. This will be the jeweller’s first wholly owned retail business in Russia, and is expected to open in the first quarter of 2014.

“Establishing a presence at this pre-eminent department store is a milestone in our growth strategy as a leading global luxury brand and underscores the importance of the Russian market,” said Frederic Cumenal, executive vice president, Tiffany & Co. “We look forward to welcoming everyone to the Tiffany shopping experience.”


in this role. Both Fernando and Mitchell will serve a two-year term.

“Fernando and Mitchell are recognized silver industry leaders and the Institute is fortunate to have them at the helm guiding our work,” said Michael DiRienzo, executive director of the Silver Institute. He continued, “We are grateful for the dedicated service of Geoff Burns as the Institute’s president the past two years. Geoff’s

Silver Institute Elects New Leadershipvision and dedication made a considerable difference to the Institute, and we are indebted to him for his service.”

The Silver Institute, a non-profit international industry association headquartered in Washington, D.C., serves as the industry’s voice in increasing public understanding of the value and many uses of silver, and also creates programmes across many platforms that benefit the white metal.

Fernando Alanis, CEO of Industrias Peñoles, S.A.B. de C.V. the world’s largest producer of refined silver based in Mexico, has been elected as the president of the Silver Institute by its membership. He succeeds Geoff Burns, president and CEO of Pan American Silver Corp. whose term ended on May 31.

Mitchell Krebs, president, CEO and a director of Coeur Mining was elected vice president of the institute, succeeding Fernando Alanis ©

Fire

flyph

oto

| D

ream

stim

e.co

m

SPECTRUM


Chow Tai Fook Reports Slow Sales in 2012-13Hong Kong-based jewellery retailer Chow Tai Fook said its revenue for the year ended March 31, 2013 rose 1.5% to HK$57,433.9 million, as against revenue of HK$56,571.1 million recorded in the previous year. Last year, the group noted a slowdown in economic growth in the Mainland of China and in the retail market across Greater China, largely due to the sluggish global economy, which impacted the luxury sector.

Profit attributable to shareholders amounted to HK$5,505.3 million, a year-on-year decline of 13.2%. Gross profit decreased 1.0%, from HK$16,447.9 million last year to HK$16,283.1 million in fiscal year 2013. The net profit margin during the twelve-month period was nearly 10%.

Amid this economic turbulence and market fluctuation, the group was able to achieve revenue

CAGR of 28% from fiscal year 2011 to 2013, indicating that its business is on track for sustainable development. Last year, the group achieved record sales, and opened a net of 209 points of sale, consistent with its retail network development plan, which targets a total of 2,000 stores by the end of fiscal 2014.

Both same store sales growth and points of sale growth continue to be the key drivers supporting the group’s medium- to long-term development. With a focus on the huge opportunities in Mainland China, the group has rolled out its points of sale expansion plan in Tier III and lower cities.

Chow Tai Fook group chairman Dr. Henry Cheng said, “Chow Tai Fook has experienced a challenging year in FY2013. It is important to realise we are investing for the future. Our strategy for expanding into

Tier III and lower cities, our plans to increase same store sales growth next year through expansion of retail floor area and optimisation of product offerings, and our fast developing e-commerce business are all reasons for optimism.”

Mainland China contributed 52.8% of the group’s total revenue in fiscal 2013, amounting to HK$30,308.4 million. This represents a revenue decrease of 5.3% mainly due to weak retail sentiment and slower wholesale business, especially in high-end gem-set jewellery products,

the company said. Worse-than-expected sales performance during the National Day holiday and the stagnant economic condition throughout the period led to lower consumer confidence among the group’s retail customers and franchisees, the company added.

“Looking ahead, the short-term macro-economic environment is likely to remain uncertain in fiscal year 2014. The group is keen to explore strategic partnerships, in particular with rough diamond miners in the upstream and with department stores and shopping centres in the downstream. This is an integral part of its continual effort to invest and expand in every aspect of its vertically integrated business model, aiming to further enhance production, operational and management efficiency through the value chain,” Chow Tai Fook stated.

PC Chandra Jewellers Opens New Showroom In KolkataPC Chandra Jewellers opened its 23rd showroom in the country in Behala, Kolkata last month. Bollywood actor Aditi Rao Hydari was present at the inauguration along with PC Chandra joint managing director Suvro Chandra and deputy managing director Amitava Chandra.

Speaking at the launch, Suvro Chandra said, “PC Chandra Jewellers wants to maintain the momentum of its expansion and Kolkata is an important region for the company. We are very happy to have opened our 11th showroom in Kolkata region.”

He further added, “The showroom at Behala is meant to serve our patrons in the nearby areas so that they do not have to travel far to buy their preferred jewellery. Our jewellery brand is highly trusted and is known for quality, tradition and excellent craftsmanship.”

(From left) Suvro Chandra, Aditi Rao Hydari and Amitava Chandra at the store inauguration.

SPECTRUM

WFDB Presidents’ Meeting In Turkey Draws To A Close

WFDB & CIBJO Sign Co-operation Agreement

The World Federation of Diamond Bourses (WFDB) Presidents’ Meeting hosted by the Borsa Istanbul in Turkey from June 16 to 18 was attended by high-level delegations from producer countries and 26 international bourses. The theme of the meeting was the taxes applied to both diamonds and jewellery across the world, with a focus on developing markets.

South Africa’s minister of minerals Susan Shabangu was present at the event, as were high ranking government representatives from Botswana and Zimbabwe. WDC chairman Eli Izhakoff and CIBJO president Gaetano Cavalieri were also in attendance. More than 100 people from across the world participated in the meet, and the open sessions were well attended by the local diamond and jewellery representatives from Turkey.

Chaim Even-Zohar, a leading diamond analyst, made two presentations: the first dealing with tax issues, and the second looking at the banking sector and its relationship with the diamond industry.

The WFDB confirmed a number of new committees at the Istanbul meeting with the aim of increasing its effectiveness in problem solving. Among the newly

formed committees were the International Arbitration Commmittee, FATF Committee, Lab & Technical Committee, Publicity Committee, World Diamond Mark Committee and the Membership Committee. These new committees will work as a grouping with the Finance Committee, the Trade and Promotions Committee and the Judicial Committee. All these bodies under the WFDB will report to the WFDB Executive.

A further highlight from Istanbul was the signing of all documents to proceed with the registration of the World Diamond Mark Foundation, thus allowing the Mark Committee to proceed with arrangements and funding.

The next major meeting of the WFDB will take place in Antwerp in June 2014, in the form of the WFDB World Congress.


aim to co-ordinate positions in the areas of gemmological standards and nomenclature; standards and methods of disclosing of treated, enhanced, synthetic and simulated diamonds and gemstones; and Corporate Social Responsibility, good governance and sustainability, including the Kimberley Process. They will also share knowledge, information and assessments about developments in the international diamond and jewellery markets, protecting the integrity of our members worldwide.

“This agreement recognises that in the current environment, no single sector of our industry operates in a vacuum,” said Cavalieri. “Through cooperation and coordination, we will be better able to serve our members, our customers and our stakeholders.”

“By creating a proper framework in which we can discuss developments and formulate policies and strategies, we will promote a more efficient and more responsive industry,” said Blom. “Ultimately, this will serve the confidence of consumers both in our products and our industry.”

Representatives of Borsa Istanbul, the WFDB and CIBJO on the dais were (from left) Dr. Ibrahim Turhan, Shmuel Schnitzer, Eli Izhahoff, Julien Dryooms, Ernie Blom, Rony Unterman, Avi Paz, Dieter Hahn and Gaetano Cavalieri.

World Federation of Diamond Bourses (WFDB) president Ernie Blom and CIBJO president Gaetano Cavalieri signed a co-operation agreement, according to which the two organisations will strive to co-ordinate positions, with the aim of positively influencing developments in the international diamond and jewellery sectors.

The agreement was signed at the WFDB Presidents’ Meeting in Istanbul. It was witnessed by Eli Izhakoff, president of the World Diamond Council, who also serves as honorary life president of both the WFDB and CIBJO.

According to the agreement, while the WFDB and CIBJO will both continue to maintain full independence, they

(From left) Ernie Blom, Eli Izhakoff and Gaetano Cavalieri.

164-ct letšeng diamond sold for $9 mn - solitaire …164-ct letšeng diamond sold for $9 mn gem...

Documents