Rapaport Magazine
Markets & Pricing

Economic Bulletin

By Rapaport News
India Exports Up
   India polished diamond imports dipped 1.9 percent year on year to $244.5 million in May 2017 and 5.1 percent by volume to 592,000 carats. Polished exports grew 3.7 percent year on year to $2.05 billion, with volume jumping 12.5 percent to 3.4 million carats.

• Rough diamond imports leaped 22.5 percent year on year to $1.86 billion, and 49.5 percent by volume to 18.1 million carats.
• Rough diamond exports slipped .4 percent year on year to $126.5 million, but by volume increased 8.5 percent to 2.7 million carats.

Belgium Exports Climb
   Belgium polished diamond imports rose 8.8 percent year on year to $1 billion in May 2017, and 4.6 percent by volume to 523,096 carats. Polished diamond exports ticked up 1.4 percent year on year to $1.12 billion, but fell 12 percent by volume to 422,711 carats.

• Rough diamond imports dived 18.5 percent year on year to $1.06 billion, but by volume increased 13.4 percent to 8.8 million carats.
• Rough diamond exports lowered 2.9 percent year on year to $1.24 billion, and by volume surged 55.4 percent to 12.9 million carats.

Botswana Exports Slump
   Botswana rough diamond exports fell 51 percent year on year to $277.5 million in April 2017, according to the Bank of Botswana. However, diamond exports for the first quarter of 2017 was 2.5 percent stronger year on year at $849.6 million.

• Gross domestic product (GDP) was 4.3 percent stronger in 2016 compared to 2015 due to an improvement in the country’s diamond trade, said the Bank of Botswana. Growth in the nonmining sector, which includes rough diamond trading, was 5.5 percent during the year.

Dominion Sales Improve
   Dominion Diamond Corporation’s sales surged 18.3 percent year on year to $211 million in the first quarter that ended April 30, 2017. By volume, sales decreased 10.3 percent to 2.3 million carats. Average price improved 30.4 percent to $90 per carat, from $69 per carat. • Net loss widened 47.2 percent to $7.8 million.

• Rough diamond sales from Ekati spiked 31 percent to $137.7 million and 18.7 percent by volume to 1.8 million carats. Average price increased 10.3 percent to $75 per carat.
• Rough diamond sales from Diavik ticked up .3 percent to $73.3 million, and by volume slumped 52.7 percent to 499,000 carats.
• Dominion has also bought out the jointly-held buffer zone of its Ekati mine from Archon Minerals Limited, which contains 106 mining leases. Archon will relinquish its stake in exchange for a 2.3 percent royalty of future revenues from the diamonds produced in the zone.

Rio Tinto Partners with Shore Gold
   Rio Tinto has signed an agreement with mineral exploration group Shore Gold Inc. to become a majority owner of an advanced-stage diamond exploration project in Canada. The agreement will potentially grant Rio Tinto up to 60 percent of the proceeds from the Star-Orion South Diamond Project in Saskatchewan.

• Shore Gold estimated a potential mine life of 20 years, though generous estimates put that potential up to 100 years.
• The asset contains 55.4 million carats of rough diamonds at a projected average price of $210 per carat. Inferred resources include an additional 11.5 million carats.
• Estimated capital cost is $1.9 billion, and Shore Gold is working to lower that cost.
• The project, which has not received environmental approval from the provincial government, could take as many as 10 years before production.

Mountain Province Sales Rise
   Mountain Province Diamonds fifth tender was its strongest to date, increasing 66.1 percent to $21.1 million from its fourth tender. Volume sold skyrocketed 50 percent to 148,000 carats, achieving a 10.5 percent improvement in average price to $95 per carat.

• The strong results were due to the inclusion of some specials and fancies Mountain Province won from its partner De Beers in the Gahcho Kué joint venture.
• Excluding the exceptional stones, average value realized was $75 per carat.
• Repeat customers won 75 percent of lots.

Lucapa Diamond Sales Strong
   Lucapa Diamond Company’s fifth sale of 2017 from the Lulo diamond project fetched $950,000 for a volume of 1,236 carats. Average price was $770 per carat, an improvement from the fourth sale of $695 per carat. Total proceeds from Angola mine amount to $15.4 million, with an average price of $1,620 per carat.

• The diamonds from the latest sale parcel were sourced primarily from its lower-grade mining block 28.
• Lucapa had switched to the lower-grade block during the Angolan wet season, which made access to higher-grade blocks difficult. Mining has since resumed at the higher-value mining blocks 8 and 6.

Article from the Rapaport Magazine - July 2017. To subscribe click here.

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