Stornoway Notes Poor Small-Stone Market

RAPAPORT… Stornoway Diamond Corporation’s average price fell quarter
on quarter in the three months ending September 30 due to weakness in the
Indian market, it said last week.



Prices of smaller and lower-quality stones have decreased since
July due to challenging conditions in India, while larger and high-quality
categories have remained strong, the company said. The miner’s average price of
$103 per carat was 7% lower than the previous quarter. Lower prices are likely
to continue for the rest of 2018, the miner added.


“During the third quarter, we saw price weakness return to
smaller and lower-quality diamonds after more than a year of steady price
gains,” said Stornoway CEO Matt Manson. “Underlying polished-diamond demand
remains strong in the US market, but is being impacted by currency weakness in
the emerging markets amidst global trade concerns. This has put pressure on
certain segments of the rough-diamond trade.”


Attendance at Stornoway’s tenders in Antwerp remains strong,
and overall prices are still higher than during 2017 due to the robust market
for more expensive goods, Manson added.


Revenue fell 52% year on year to CAD 24.7 million ($18.9
million) as the company sold 184,620 carats at two tenders during the quarter,
versus 438,632 carats at the same number of sales a year ago. The average price
climbed 8% year on year. Production at the company’s Renard mine in Canada declined
26% to 329,306 carats.

Image: Stornoway’s Renard mine in Canada. (Stornoway Diamond Corporation)