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Diamond Traceability and an Instagram Revelation

Diamond Gems Weekly - August 19.


Okay, so I’m a little late to the party. I did my first Insta Live last week! Is that the right verb? Does one “do” a Live? Is it okay to abbreviate Instagram (Insta) in official correspondences? So many questions… By now, I hope you’re comfortable enough that we can drop some of the formalities in our communication. I certainly felt at ease with David Brough, the founder of www.jewelleryoutlook.com, who initiated our “conversation about diamond markets.” David is a veteran of the trade (both journalism and jewelry), and it shows in his talking points. I think we had an insightful chat if I say so myself.

 

Many of the issues we touched on popped into our news feed in the last week. Here’s a rundown of some of the more important stories to reflect upon. 

 

>>> The jury is still out whether traceable diamonds can sell for more than non-traceable ones. That they’re an easier sale, was among the many takeaways from the two features I wrote for Rapaport Magazine’s latest issue on Source Certification. Check The Race to Trace, which tackles the dynamics behind the shift toward diamond accountability, and Record Companies, which outlines how the different traceability programs work.

 

>>> We received a rare update from Russian miner Alrosa, which published financials in English for just the second time since the outbreak of the Russia-Ukraine war in February 2022. Revenue fell 5% year on year to RUB 179.5 billion ($2.01 billion) in the first half of 2024. Profit slumped 34% to RUB 36.63 billion ($409.4 million). That reflects a drop in the market more than any impact that sanctions may have had on the company’s operations.   

 

>>> High-value, low-volume mining operations seem to be outperforming the high-volume majors. Gem Diamonds enjoyed a 9% rise in its sales to $77.9 million in the first half, although the average price achieved at its Letšeng mine was flat at $1,366 per carat. The company sold six diamonds larger than 100 carats during the period, while 11 stones sold for more than $1 million.  

 

>>> Market conditions remained challenging for the natural diamond manufacturing industry in the first half of 2024, was how Sarine Technologies began its review of the six-month period. Sarine, which provides equipment used in diamond manufacturing, reported revenue fell 8% to $21.9 million in the half year. Profit grew 7% to $1 million as it cut expenses. The company’s recurring revenue scheme, in which it receives a payment per stone analyzed through its rough planning machines, helped sustain Sarine’s top line. It also received a boost from the “rapid pace of adoption” of its planning service for lab-grown diamonds.

 

>>> Mumbai-based Asian Star ranks among the very few diamond manufacturers to present earnings as a public company. The group reported revenue from its loose diamond business fell 22% to INR 62.98 billion ($75.1 million), while operating profit from the segment dropped 20% to INR 177.3 million ($2.1 million). Diamonds account for 78% of total revenue, with jewelry making up for most of the rest.

 

>>> Pandora, which claims to be the world’s largest jewelry brand, reported revenue grew 9% to DKK 13.61 billion ($2.01 billion) in the first half, with profit up 6% to DKK 1.64 billion ($260.8 million). Revenue from its lab-grown collections grew 88% to DKK 124 million (18.3 million).

Image: Sarine’s Journey program is one of many traceability programs offering source verification solutions to the diamond trade. (Credit: Sarine Technologies).

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