February 2025: News Roundup

Trading Affairs

The Government of Botswana and De Beers signed the agreements outlining their partnership. The 25-mining agreement extends the license for their Debswana mining joint venture from August 2029 to July 2054. Under the new sales agreement, the parastatal Okavango Diamond Company (ODC) will sell 30% of Debswana production in the first five years, 40% in the subsequent five and 50% in the five-year extension period, with De Beers selling the remaining share.

The European Union has delayed the implementation of mandatory traceability-based evidence for diamond imports. Under the EU’s 16th sanctions package against Russia, the deadline has been pushed to January 1, 2026, from its earlier schedule of March 1. In addition, traders importing rough diamonds of mixed origin must present a Kimberley Process certificate listing all countries of origin. The Antwerp World Diamond Centre (AWDC) said the decision gives diamond companies the much-needed time to adopt traceability in their daily operations.

De Beers Tracr platform has collaborated with Sarine Technologies (SGX: U77) to provide verification services tracking a diamond’s journey from the mining source, the companies announced (Sarine and Tracr). The deal enables the integration of Sarine’s scanning and identification technology with data relating to rough diamonds scanned at the source and registered on Tracr’s blockchain platform.

The Israel Diamond Exchange (IDE) has partnered with technology company Authentia to enhance innovation, trust and transparency in the Israeli trade. The two signed a memorandum of understanding to strengthen trade security, improve verification processes, increase efficiency and bring quality rough to Israel, IDE said.

The Responsible Jewellery Council (RJC) launched its Laboratory Grown Material Standard (LGMS) outlining the necessary provisions for ethical and sustainable practices in the lab-grown diamond and lab-grown colored gemstone sectors. The standard covers all aspects of responsible business practice, spanning legal compliance, disclosure, appraisal and grading, human rights, and environmental management, among other factors.

Melanie Grant has stepped down as executive director of the Responsible Jewellery Council (RJC), she informed members in a newsletter. Grant served in the position for two years and will consult the organization during its search for a successor. Meanwhile, John Hall will serve as interim executive director. 

Sarine Technologies (SGX: U77) reported revenue fell 9% to $39.2 million in 2024. It posted a profit of $1.1 million, versus a loss of $2.8 million in 2023, boosted by financing income and lower tax payments. Weak Chinese demand and continued disruption from lab Grown diamonds have adversely affected the diamond manufacturing sector and use of its equipment, the technology provider said.

Asian Star (BOM: 531847) saw revenue slide 1% year on year to INR 6.92 billion ($79.6 million) in the fiscal third quarter ending December 31. Net profit dropped 39% to INR 111.5 million ($1.3 million), the Mumbai-based manufacturer reported. Loose diamond sales fell 10% to INR 5.13 billion ($59 million), while jewelry sales grew 32% to INR 2.28 billion ($26.3 million).  

Hong Kong’s polished diamond imports fell 26% to $10.77 billion in 2024, while polished exports dropped 21% to $10.72 billion, the Diamond Federation of Hong Kong, China reported. Exports to China declined 36%. Rough imports to Hong Kong grew 113% to $1.23 billion, with imports from Russia up 74% to $789 million.

India’s polished exports slid 13% year on year to $1.02 billion in January, according to data published by the Gem & Jewellery Export Promotion Council (GJEPC). Rough imports slumped 37% to $735.4 million amid weak trading at the start of the year.  

Belgium’s polished exports declined 36% year on year to $366.6 million in January, and polished imports dropped 31% to $431.4 million, statistics from the Antwerp World Diamond Centre (AWDC) revealed. Rough imports fell 46% to $231.1 million, while rough exports slumped 59% to $170.5 million.   

The London Diamond Bourse launched a digital platform to encourage networking and collaboration within the diamond industry. CiviGem offers a global industry directory, direct messaging and community engagement, knowledge sharing and industry insights and support for young professionals, the bourse explained.

Ownership of the Dubai-based International Diamond Laboratory has transferred from founder Peter Meeus to Shaunak Shastree and Francesco Natale, the diamond, gemstone and jewelry grading company announced. The groups didn’t give details of a transaction that may have taken place.

​​Transatlantic Gem Sales (TAGS) has opened a tender facility in Johannesburg, South Africa to facilitate rough diamond sales for local producers. The company has a facility in Dubai and conducts rough tenders on behalf of Sodiam, Angola’s state rough supplier.

Development of the Ice Road

The Tibbitt to Contwoyto Winter Road, more commonly known as The Ice Road, opened in early February to limited traffic. The road enables supplies to reach the Diavik, Gahcho Kué and Ekati mines in Canada’s northwestern Territories. Approximately 5,800 loads are expected to be transported along the road this year. 

Mining Matters

Anglo American (LON: AAL) shed $2.88 billion from its valuation of De Beers due to prevailing diamond market conditions, the conglomerate said in its annual results. Anglo intends to divest from its 85% stake in the diamond business and reported that “work to separate De Beers is well under way.” Anglo now has a recoverable value for De Beers of $4.1 billion.  

De Beers reported revenue fell 23% to $3.29 billion in 2024, with rough sales down 25% to $2.7 billion. An underlying loss of $288 million marked a slight improvement from the previous year’s loss of $314 million, parent company Anglo American (LON:AAL) revealed. Earnings before interest, taxation, depreciation and amortization (EBITDA) slid to negative $25 million, from a profit of $72 million.  

De Beers average price index fell 20% in 2024 amid challenging trading conditions, Anglo American (LON: AAL) reported. De Beers reduced its production for 2025 plan by up to 10 million carats and now expects output of 20 million to 23 million carats. Anglo said it is reviewing its valuation of the diamond business. Production in 2024 slid 22% to 24.7 million carats, while sales volume slumped 29% to 19.4 million carats.

Lucara Diamond Corp (TSE: LUC) reported revenue grew 18% to $203.9 million in 2024, bucking the trend of negative results by miners for the year. The company recorded a profit of $39.9 million, compared to a loss of $20.2 million in 2023. Growth was driven by increasing demand for large stones and a significant rise in the recovery of specials at its Karowe mine its Botswana.

​Mountain Province Diamonds (TSE:MPVD) announced a series of refinancing transactions to help the mining company navigate the serious financial difficulty it is facing. Mountain Province owns a 49% stake in Canada’s Gahcho Kué mine in a joint venture with 51% owner De Beers. The transactions include a payment agreement with De Beers and a $40 million term loan.

Endiama recovered 13.96 million carats of rough diamonds in 2024, generating revenue of $1.49 billion, the Angola state mining company reported. Other milestones achieved during the year included the establishment of the Angola Diamond Laboratory and the launch of manufacturing facility Robust Diam. Endiama is planning production of 14.8 million carats in 2025.

The Jean Boulle Group, a Luxembourg-based minerals investment firm, formed a joint venture with Endiama to develop the N’Dumba diamond concession in Angola’s Lunda Norte province. To date, 10 kimberlites have been identified on the 222 square-kilometer N’Dumba area.

Rio Tinto’s (ASX: RIO) diamond revenue fell 37% to $279 million in 2024, the company reported. The business unit, which comprises Rio’s ownership of the Diavik mine in Canada, recorded an underlying loss of $127 million for the year, compared to a profit of $26 million in 2023. Production at Diavik dropped 17% to 2.8 million carats.   

Petra Diamonds (LON: PDL) recorded a loss of $69 million in the six months ending December 31, compared to a loss of $11 million a year earlier. Revenue slumped 30% to $115 million amid prolonged weakness in the diamond market, the company said. Petra has been restructuring to reduce costs and improve cash flow, with expansion projects underway at its Cullinan and Finsch mines.

Richard Duffy resigned as CEO of Petra Diamonds (LON: PDL) “by mutual agreement and with immediate effect,” the mining company said. Duffy served in the position for six years and has been replaced by joint interim CEOs Vivek Gadodia and Juan Kemp. Until now, Gadodia served as Petra’s chief restructuring officer, while Kemp was operations executive at the Cullinan mine.​​​​​​​​

Lucara Diamond Corp. (TSE: LUC) announced the final sale of the 549-carat Sethunya and the 1,080-carat Eva Star rough diamonds for $54 million. Both stones were recovered at the Karowe mine in Botswana, with the Sethunya unearthed in 2020 and the Eva Star in 2023. The sale took effect in previous years as part of Lucara's off-take agreement with HB Antwerp and Louis Vuitton. The final payment was made in the first quarter of 2025.

Namdia, Namibia’s state-owned rough trading company, has suspended CEO Alisa Amupolo, chief operations officer Uahoroka Kauta, and security manager Paulinus Sheyapo, following a robbery of its premises in which employee Francis Eisib was killed. Namdia executive Lelly Usiku is serving as interim CEO while an investigation of the crime is ongoing.  

Retail Reality

The National Retail Federation (NRF) expected record spending for Valentine’s Day. The group projects consumer spending to rise 7% year on year to $27.5 billion. Among those surveyed, 22% said they’re planning to buy jewelry, 35% will spend on an evening out, 40% each on flowers and greeting cards, while 55% said they plan to spend on candy.

De Beers Jewellers has rebranded as De Beers London, the group announced. The name emphasizes De Beers place in the high-end luxury world by linking the jewelry house to one of the fashion and luxury capitals of the world, it said. The jeweler also launched its 2025 brand campaign ‘Portraits of True Brilliance.’

Celine Assimon has stepped down from her role as CEO of De Beers London, she confirmed on LinkedIn. Assimon took the position in August 2020 and served as head of Forevermark until that brand was discontinued in the US in March last year.

Sales in Kering’s (EPA: KER) “other” segment, which includes its jewelry houses, fell 8% to EUR 3.2 billion ($3.32 billion) in 2024. The “jewelry houses continued to make progress, with a particularly healthy performance at Boucheron,” Kering said. Its jewelry brands are Boucheron, Pomellato, DoDo and Qeelin.

Swatch Group (SWX: UHR) reported sales fell 12% to CHF 6.74 billion ($7.45 billion) in 2024, while net income slumped 75% to CHF 219 million ($242 million). Sales were dragged down by a 30% decline in greater China and Southeast Asia. The company achieved record sales in local currencies in the US, Japan, India and the Middle East. Harry Winston “performed well,” Swatch said.

Swiss watch exports increased 4% year on year to CHF 2 billion ($2.23 billion) in January, the Federation of the Swiss Watch Industry reported.  Growth in the US (+16%) and Japan (+26%) offset declines in Hong Kong (-12%) and China (-29%). Higher priced watches, with an export value over CHF 3,000 ($3.36 billion), were the strongest category during the month.

Pandora (CPH: PNDORA) reported revenue from lab-grown diamonds jumped 43% on a like-for-like basis to DKK 315 million ($44 million) in 2024. Group revenue increased 7% to DKK 31.68 billion ($4.42 billion), while net profit grew 10% to DKK 5.23 billion ($729 million). The US remains Pandora’s largest market, as sales there grew 8% to DKK 9.71 billion ($1.35 billion).  

India-based jeweler Titan Company (NSE: TITAN) saw revenue increase 24% year on year to INR 162.28 billion ($1.86 billion) in the third fiscal quarter ending December 31. Profit fell 5% to INR 9.9 billion ($113 million). Sales during the Diwali festive period grew 28% buoyed by higher gold prices and wedding related purchases, Titan said.

Michael Hill (ASX/NSX: MHJ) saw group revenue slide 0.7% year on year to AUD 360.2 million ($227.2 million) in the fiscal half year ending December 29. Prevailing macroeconomic pressures weighed on consumer sentiment in New Zealand, while sales in Australia and Canada rose slightly, the jeweler said. Profit grew 10% to AUD 16.9 million ($10.7 million).

Hong Kong’s retail sales of jewelry, watches and clocks fell 15% in 2024, the municipality’s Census and Statistics Department said. Overall retail sales dropped 7% to $376.8 billion. The pace of decline softened in the fourth quarter compared to a year earlier, a spokesperson noted.