January 2025: News Roundup

Mining Matters

Petra Diamonds agreed to sell its 75% stake in Williamson Diamonds Ltd., owner of the Williamson mine in Tanzania, for $16 million. The buyer was Pink Diamond Investments, an affiliate of Tanzania-based Taifa Mining and Civils Ltd. The Government of Tanzania  owns the remaining 25%.  

Petra Diamonds, owner of the Finsch and Cullinan mines in South Africa, reported revenue fell 22% year on year to $146 million in the fiscal first half ending December 31. The group saw like-for-like rough prices decline 10% year on year, dragged down by weakness in smaller size categories.

Mountain Province Diamonds (TSX:MPVD) reported revenue declined 20% to CAD 267.7 million ($195.2 million) in 2024, as its average sales price dropped by the same margin to CAD 98 ($72) per carat. Production at the Gahcho Kué mine in Canada fell 43% to 4.66 million carats, of which 49% went to Mountain Province and the remainder to De Beers, its partner in the project. 

Proceeds from the Ekati mine fell 39% year on year to $101 million in the fourth quarter. Sales volume dropped 39% to 1.1 million carats as lower quality goods remained unsold, owner Burgundy Diamond Mines (ASX: BDM) said. Production fell 17% to 1 million carats. Burgundy will release a plan in the second half that may extend the life of mining at Ekati beyond 2030.

Gem Diamonds (LON: GEMD) reported sales from its Letšeng mine in Lesotho grew 10% to $152.8 million in 2024. The average price achieved rose 4% to $1,290 per carat, while sales volume increased 5% to 109,967 carats. The mine yielded 13 rough diamonds larger than 100 carats during the year, compared to five in 2023.

Output at the Diavik mine in Canada grew 14% year on year to 775,000 carats in the fourth quarter of 2024, Rio Tinto reported. Full year production fell 17% to 2.76 million carats. The company is currently shifting its A21 underground operation to commercial production.

Lucapa Diamond Company (ASX:LOM) said revenue from its Lulo mine in Angola fell 30% to $54.2 million in 2024, after sales slumped 71% year on year in the fourth quarter. The average price for the full year declined 27% to $1,980 per carat, while sales volume dropped 27%. The mine yielded 77 specials – rough diamonds larger than 10.8 carats – in the fourth quarter, a 43% increase from a year earlier.  

An unnamed Dubai-based diamond manufacturer signed a letter of intent to finance junior Canadian miner Diamcor (TSX-V:DMI). The supplier of bridal and anniversary diamonds will provide a loan of up to $5 million which Diamcor said it will use to raise volumes and advance activity at the Krone-Endora at Venetia project, a tailings operation adjacent to the Venetia mine in South Africa.

Star Diamond reported that all 71.7 million shares held by a former partner in its Fort à la Corne project have been sold. An unnamed international investor with interests in diamonds bought 61.12 million shares and expressed interest to help advance the Canadian exploration program.​​

Retail Reality

Jewelry ranked as a hot category for e-commerce over the holiday period, according to Adobe Analytics. Total US online sales grew 8.4% year on year to $241.4 billion in November-December, with electronics, apparel and home goods accounting for 54% of all online spending.  

Global online sales grew 3% year on year to a record $1.2 trillion over the November-December holiday period, Salesforce reported. Shoppers used AI- and agent-powered chat for customer service 42% more than they did during the 2023 holiday season, Salesforce noted. 

Jewelry stood out as a strong performer in the global luxury market in 2024, according to the Bain-Altagamma Luxury Goods Worldwide Market Study. Overall spending on luxury declined 1% to 3% to EUR 1.48 trillion ($1.55 trillion), the report said. Jewelry held strong especially in the high-end haute joaillerie. There was also strong momentum for jewelry in the growing second-hand market.

Richemont generated revenue of EUR 6.15 billion ($6.34 billion) in the fiscal third quarter ending December 31, a rise of 10% from a year earlier. Its jewelry maisons – Buccellati, Cartier, Van Cleef & Arpels and Vhernier – led the charge with sales up 14% to EUR 4.5 billion ($4.64 billion). All regions grew except Asia Pacific where the decline softened, the group said. (see video)

Revenue from LVMH’s (Paris: LVMH) watches and jewelry business fell 3% to EUR 10.58 billion ($10.96 billion) in 2024. Sales in Asia accounted for 29% of the total, down from 34% the previous year. Tiffany & Co. saw record revenue at its flagship store, The Landmark, on New York’s Fifth Avenue, while Bulgari gained market share driven by strong sales in high jewelry and luxury watches, LVMH said. Profit from the business unit fell 28% to EUR 1.55 billion ($1.6 billion).​

Signet Jewelers reported November-December holiday sales fell 2% year on year. The company saw lower traffic and conversion of sales, while the average transaction price grew 5%. Signet shares plunged as the jeweler cut its fourth-year sales guidance to a range of $2.32 billion to $2.24 billion. (see video)

Birks Group (NYSE: BGI) reported holiday sales grew 4% year on year driven by a strong performance in its branded watch offering and on its e-commerce platform. Comparable-store sales edged up 1.3% during the November-December period. Birks has stores across Canada and sells through partnerships in the US, the United Kingdom and Poland.

Retail sales at Chow Tai Fook dropped 14% year on year in the fiscal third quarter, the Hong Kong-based jeweler said. Same-store sales in mainland China fell 16%, while in Hong Kong Kong-Macau they slid 21%. Same-store sales of gem-set, platinum and K-gold jewelry declined 20% in China but grew 34% in Hong Kong-Macau.

Luk Fook reported revenue from across its self-operated stores and e-commerce platforms fell 9% year on year in the quarter ending December 31. A 27% improvement in mainland China partly compensated for a 20% decline in Hong Kong and Macau. Group same-store sales of diamonds slumped 47% during the period.  

Mumbai-based Titan Company reported sales rose 24% year on year in the third quarter ending December 31. Its jewelry segment grew 26% buoyed by strong demand during the Diwali festival. Caratlane saw revenue up 25%, while the brand opened its first international store in the US.

Group sales at Michael Hill (ASX:MHJ) fell 1% year on year to AUD 359.1 million in the fiscal first half that ended December 29. The Australia-based jeweler said sales edged up 0.6%in Australia, grew 3% in Canada and fell 8% in New Zealand. The company launched several new product initiatives in the lab-grown diamond space during the period.​​

Trade Affairs 

Jewelers of America and Diamond Council of America established a fund to help jewelry retailers and manufacturers whose businesses were damaged by wildfires in the greater Los Angeles area. Donations to the Jewelers Relief Fund can be made here.

​De Beers and the Gem & Jewellery Export Promotion Council (GJEPC) have partnered to enhance the narrative about natural diamonds in India. The project, named INDRA - Indian Natural Diamond Retailer Alliance, will support independent jewelers with tools for their campaigns. (See video explainer)

The World Federation of Diamond Bourses (WFDB) launched a social media campaign to promote natural diamonds. The “Moments” campaign is the first of several steps the body will take to portray the beauty and emotion inherent in natural diamonds, WFDB president Yoram Dvash said.

Alrosa expects rough and polished inventory levels to normalize in the coming months, supported by “significant” demand for jewelry and a notable decline in mining capacity. Increased online sales enabled jewelers to structurally reduce their inventory needs, CEO Sergey Takhiev noted.     

The market for fancy color diamonds softened in 2024, reflecting broader economic uncertainties, according to the Fancy Color Research Foundation (FCRF). The group’s Fancy Color Diamond Index fell 2.2% during the year, with prices of yellows down an average 5.6%, blue diamonds declining 1.8% and pinks slipping 0.8%.  

India’s Department of Commerce introduced a program to enhance competitiveness in the polished diamond market. The scheme enables the duty-free import of small diamonds below 0.25-carat, but is limited to 5% of a company's average annual exports over the previous three years, or up to $15 million. Larger stones remain subject to a 5% duty. The initiative is a response to beneficiation policies in producer countries requiring manufacturers to cut and polish their rough supply locally.

India’s polished diamond exports fell 21% year on year to $13.76 billion in 2024, while its rough imports declined 16% to $11.9 billion. During the fourth quarter, both metrics sunk to their lowest levels since the second quarter of 2020, as per an analysis of data published by the Gem & Jewellery Export Promotion Council (GJEPC). (see video)

The Antwerp World Diamond Centre (AWDC) called on the Belgian government to support the country’s diamond sector, noting economic and geopolitical factors contributed to a slump in business. There’s an urgent need for a stable and predictable business climate to encourage both domestic and international entrepreneurs to operate in Belgium, the trade body said.    

Belgium’s rough diamond trade – imports plus exports – fell 36% to $8.53 billion, and by 24% in volume terms to 76.84 million carats in 2024, data by the Antwerp World Diamond Centre (AWDC) revealed. Polished trading declined 17% to $15.85 billion, while volume slid by the same margin to 7.38 million carats.

Swiss watch exports fell 3% to CHF 25.99 billion ($38.42 billion) in 2024, the Federation of the Swiss Watch Industry reported. The US again ranked as the industry’s top market, as exports there grew 5%, followed by mainland China and Japan. Exports to China fell 26% and to Hong Kong by 19%.

Diamantaires in Lesotho collaborated to establish the Lesotho Diamond Manufacturers Association (LDMA), the group announced. The LDMA aims to transform Lesotho into a leading hub for diamond manufacturing in southern Africa, they said.

There was a 15% rise in jewelry businesses discontinuing in the US in 2024, according to the Jewelers Board of Trade (JBT). Of the 747 businesses, 642 simply closed, while 102 were through a sale or merger, and there were three bankruptcies. The year ended with 23,842 jewelry businesses operating, 3.2% lower than 2023.

Susan Jacques will retire from her role as president and CEO of the Gemological Institute of America (GIA) at the end of 2025, the GIA announced. She has served in the role since January 2014. The GIA will consider internal and external candidates to replace her.