RE: General20 Jan 2020 16:15
On the topic of the diamond price recovery. I have been following a few items and it appears there are some green shoots across the market:
- Lucara - Tender on the 12th Dec exceeded expectations, with proceeds 16% higher than expected "Market pricing improvements were noted in all size classes"
- Alrosa - Dec sales of $363.8m (+11% YOY) "“In December, we observed signs of stabilising diamond demand that had emerged earlier in the second half of the year amid the gradual restoration of market balance"
- Signet - The largest Jeweler in the US beat expectations, sending its share price up 40%+ last week
- De Beers - 1st sight of 2020 is this week, so if that is going well it could be giving a positive undertone to the market.
I think it is early days and De Beers / Alrosa obviously still have large stockpiles held back from 2019 to put into the market at some point.
Let's wait and see what happens next Monday. I think some FCF for the period and a positive tone around diamond pricing, will see us return to double figures. Good luck all.