Archive for January, 2008
Zale Corp to close 60 stores in 90 days
Zale Corp to close 60 stores in 90 days
Wants to cut annual capital spending from the planned $110 million to $85 million
Zale Corp seems to be noticing erratic developments recently. The company wants to cut down its annual capital spending from the planned $110 million to $85 million, as its sales slipped down by 9% during November and December 2007. A result of this is that Zale intends to close down 60 stores quite rapidly within the next 90 days. And this does not seem all, as the corporate wants to close a few more dozen stores later this year. On the contrary, Breeden Capital Management has increased its stake in Zale from 15.9% to 17.7%. Breeden has increased its stake for the fourth time during the month.
http://www.diamondworld.net/newsroom/news.asp?newsid=1900
Read Full Post | Make a Comment ( None so far )GJF to spread its ‘trust mark’ nationwide
GJF to spread its ‘trust mark’ nationwide
Will target 250 jewellery retailers in Phase I
The All India Gems & Jewellery Trade Federation (GJF), which had introduced the ‘trust mark’ logo in Mumbai in 2007, now wants more jewellers across India to benefit from it. The Federtaion would promote its programme amongst all jewellers in major cities of India. The logo signifies integrity in the conduct of business, as part of the Top Jewellers of India (TJOI) club. The other two membership categories are Preferred Jewellers of India and Reliable Jewellers of India.
When it was launched, around 20 jewellers in Mumbai had enrolled to bear the logo. The
GJF said that it is targeting 250 jewellery retailers from cities like Rajkot, Ahmedabad, Baroda, Surat, Delhi, Kolkata, Chennai, Pune and Hyderabad, in the first phase ending March 2008, according to reports by the Financial Express. The jewellers who wish to participate must be those selling hallmarked jewellery and hold a registration with the Bureau of Indian Standards.
http://www.diamondworld.net/newsroom/news.asp?newsid=1904
Read Full Post | Make a Comment ( None so far )Tiffany authorises repurchase
Tiffany authorises repurchase
Investor also increases his stake; now owns 10.71 million Tiffany shares
Tiffany & Co. said that it has authorised the additional repurchase of its shares and has also extended the deadlines for repurchasing. The shares are valued at $500 million of the common stock.
With the increase, Tiffany will be able to repurchase up to $637 million of its shares through January 31, 2011. Also Tiffany’s staunch investor Nelson Peltz has increased his stake to 7.9% and now owns 10.71 million Tiffany shares. According to Michael J. Kowalski, chairman and chief executive officer at Tiffany & Co., “This new authorisation clearly expresses our board’s confidence in Tiffany’s business and growth potential, and enables us to continue to opportunistically repurchase shares and return excess capital to stockholders.”
Tiffany had made such an increase in August 2006, when it authorised the repurchase of up to $813 million stock through December 31, 2009. Tiffany is now planning to open a boutique in Tokyo’s Matsuzakaya Ginza department store and another in Fukuoka’s Hakata Daimaru department store by March 1, 2008.
http://www.diamondworld.net/newsroom/news.asp?newsid=1901
Read Full Post | Make a Comment ( None so far )De Beers’ lawsuit to be heard soon
De Beers’ lawsuit to be heard soon
Claimants say that De Beers was involved in unfair trade and promotions
De Beers S.A and its associated companies seem to be immersed in class action lawsuits, where the claimants are asking for money damages on behalf of diamond purchasers. According to Resource Investor, the lawsuits connote that De Beers and subsidiaries had violated antitrust, unfair competition and consumer-protection laws by monopolizing diamond supplies, and had conspired to control the diamond prices by fixing and raising them as per their discretion. The company was also charged with false advertising.
The settlement which is being heard in the US District Court for the District of New Jersey, states that De Beers would be liable o pay $22.5 million to the Direct Purchaser Class Members who have submitted valid claims, while $272.5 million must be paid to Indirect Purchaser Class Members also with valid claims. The claim applies to diamonds purchased between January 1, 1994 and March 31, 2006. The Court will hold a hearing on the Settlement, called the “Fairness Hearing,” at 10:00 a.m. on April 14, 2008.
http://www.diamondworld.net/newsroom/news.asp?newsid=1902
Read Full Post | Make a Comment ( None so far )DTC cocktail party ends on an ambitious note
DTC cocktail party ends on an ambitious note
Shine and Penny reiterate the growth plans of the DTC
The DTC Sightholder cocktail party, which was held two nights ago in London concluded on a positive note. Although the recent past has not been so pretty with DTC slacking its number of sightholders, Nicky Oppenheimer stated that several personal friends would no longer be buying diamonds directly from De Beers but, “At the same time, it is exciting to welcome new players who I am sure will add luster and vibrancy to the industry as a whole. Varda Shine (DTC Managing Director) has kept me closely in touch with the whole process and she and her team have met every challenge I placed before them.”
De Beers Managing Director Gareth Penny noted that in 2007 De Beers had introduced improvements to find new deposits of rough. He added: “As we look forward to opening several new mines this year, we have also sold on some of our operations that no longer fit with the business model we seek to deploy. To attain profitable growth, we must remain aware of costs. As India and China continue to register outstanding economic growth, their demand for finite supplies of natural resources has resulted in higher resource prices.”
DTC Managing Director Varda Shine admitted that the recent changes in DTC policies have not been easy for anyone. However, she noted: “I believe that the new Sightholder contract was implemented fairly and objectively, applying the same rules to every applicant. I believe too that it has resulted in a list of diverse, quality Sightholders that are best placed for future success, particularly in the current environment of constrained supply.” She also highlighted the road ahead to be taken by DTC along with its partners, saying “DTC Botswana will be opening its new building in Gaborone and we will be working on our plans to transfer aggregation from London to their fantastic new facility in 2009. The new Sightholder contract will mark the completion of major period of change in the structure of our business relationship with you, our clients. Our joint ventures with the Governments of Namibia and Botswana are start up businesses. They have access to the knowledge and expertise of the DTC and will adapt as lessons are learnt. Together, the DTC, its producer partners and the Sightholders with operations in these countries will continue to seek ways of maximizing the value of diamonds and work together to ensure that a sustainable downstream business is created.”
Shine asked the Sightholders to benefit DTC’s initiatives with feedback to make ways for improvements. She also clarified the eligibility of the Forever mark, saying: As you know, in future participation in the FOREVERMARK will be open to all eligible diamantaires and not just DTC Sightholders. This means that existing and new DTC Sightholders through their continuing compliance with the Best Practice Principles will meet one of the fundamental criteria to be a FOREVERMARK diamantaire.”
http://www.diamondworld.net/newsroom/news.asp?newsid=1903
Read Full Post | Make a Comment ( None so far )Rio Tinto may reconsider investment in Zimbabwe
Rio Tinto may reconsider investment in Zimbabwe
Awaits the implementation of the Bill
According to Antwerp Facets News Service, Rio Tinto which had earlier planned to withdraw its investments in a new project in Zimbabwe, says that it may reconsider the U.S. $60 million investment, provided the Mugabe government implements its Indigenization and Economic Empowerment Bill. The Bill now awaits the signature of the President Robert Mugabe, although it has been approved by the Zimababwian Legislation. The Bill states that all foreign owned companies would have to inclulde a local as a majority shareholder. Rio Tinto holds 56 percent of Rio Tinto Zimbabwe, which owns and operates the Murowa diamond mine.
The Zimbabwe parliament is also considering the Mines and Minerals Amendment Bill, which will authorise the government to purchase 51 percent staked in foreign companies’ holding in local mines, which produce ‘strategic fuels and minerals’. Up to 25 percent of the 51 percent could be taken without money changing hands, and the remaining would be paid under a five-year plan.
Rio Tinto has also expressed concern about Zimbabwe’s foreign exchange regulations, which requires mining companies to source foreign exchange at the official rate, which currently is Zim. $30 000 to one U.S. dollar, reported AFNS. The rate available on the open market is more than Zim. $2 million to one U.S. dollar.
http://www.diamondworld.net/newsroom/news.asp?newsid=1879
Read Full Post | Make a Comment ( None so far )Macau Fair – a launch pad for China
Macau Fair – a launch pad for China
Will allow global diamond companies to gain from the growing demand of China’s markets
China hosted its first jewellery show ‘Macau Jewellery and Watch Fair’, at The Cotai Strip Convention and Exhibition Center at The Venetian Macao-Resort-Hotel. The four day show was inaugurated on January 10, and accommodated more than 500 exhibitors across 24 countries, with most of them being from Hong Kong and the Israeli diamond industry.
The fair was co-hosted by CMP Asia and the Israeli Diamond Industry. According to CMP’s CEO Mr. Jime Essink, there was immense growth potential within the new markets opening in the Far East, mentioning that the trade events in Macau and likewise in Shenzhen and Shanghai, will be a strong ground for exhibitions and business interactions with companies across the globe.
Alissa Goren, the Israel Diamond Institute’s Director of Marketing and Trade Events, noted that the show, which is the first high-profile jewelry event to take place in Macau, provides an excellent opportunity for first-time exhibitors in the Asia-Pacific to establish themselves in the rapidly developing regional markets. Celine Lau, director of jewelry fairs at CMP Asia said “Macau is becoming the newest hot spot for business and entertainment in Asia. Because of these trends, the Macau Jewellery and Watch Fair is being held to provide an unprecedented marketplace for both Asian and international exhibitors, and represents a milestone in Asia’s emergence as a crucial trading platform for the world’s jewelry business.”
One amongst the many unique displays at the show was a 136-carat Colombian emerald exhibited at the Hatta New World booth in the Fine Design Pavilion.
http://www.diamondworld.net/newsroom/news.asp?newsid=1880
Read Full Post | Make a Comment ( None so far )Astronomers discover largest diamond in galaxy
Astronomers discover largest diamond in galaxy
Lucy weighs 10 billion trillion trillion carats
According to a report by the Antwerp Facets News Service, astronomers at Harvard University have discovered what they claim as the largest diamond till date ever to be found, over and above what exists on earth. The diamond is the planet called ‘Lucy’, which is 50 light years from the Earth. This diamond planet weighs at least 10 billion trillion trillion carats and is the remianing hot core of an extinct star. The astronomers explained that Lucy is a crystallised white dwarf. They also claim that within five billion years, the Sun will also die and turn into a similar diamond in the solar system.
http://www.diamondworld.net/newsroom/news.asp?newsid=1876
Read Full Post | Make a Comment ( None so far )DTC implements its BPP
DTC implements its BPP
Bans suplpies to six companies, two have lost sights for the current year
The Diamond Trading Company (DTC), under the leadership of Varda Shine seems to be projecting a strict image as far as implementing its Best Practice Principles (BPP) is concerned. Recently, it suspended six sightholders due to a criminal case filed against them in Antwerp. The case is filed with the Antwerp criminal court, which ruled on December 6, 2007, that the companies were involved in smuggling of diamonds based on fake invoices. The case had occurred a decade ago.
Pending the results of further due diligence into this matter, the DTC reserves its right to take all appropriate action in respect of its supply to the businesses involved, in connection with both the current Transitional Supply Contract, and (where relevant) the 2008-2011 Supplier of Choice Contract including, but not limited to, suspension or termination of supply. Most of the suspended companies were Indian firms based in Belgium, of which two are sightholders who have lost their contract for the current period. They plan to appeal to the DTC that the case occurred before the DTC introduced its best practice principles.
http://www.diamondworld.net/newsroom/news.asp?newsid=1882
Read Full Post | Make a Comment ( None so far )US polished imports grew by 8.6% in value
US polished imports grew by 8.6% in value
Polished imports from india gre in value by 10.7%
According to reports, the American polished diamond gross imports grew overall in value but declined in volume across all countries. The overall polished import increase was of 8.6% to amount to $15.1 billion, during January to October in 2007. Polished imports from India also surged by 10.7% to value at $3.16 billion. Year-to-date polished imports from Israel escalated by 10.3% to $7.9 billion, while that from Belgium was up by 5.4% to $2.46 billion.
However polished imports in volume plummeted by 11% to 13.35 million carats, or an average of $1,131/ct. Polished imports from India also fell in volume by 11.3% to amount to 7.85 million carats. The average value of India’s polished shipments was $403.51/ct. The polished imports from Israel dropped by 4.4%, to 3 million carats, with an average value of $2,630/ct. Polished diamond imports from Belgium also dipped by 10.1% to 1.26 million carats, averaging $1,952/ct.
http://www.diamondworld.net/newsroom/news.asp?newsid=1881
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