[miningmx.com] – THE global diamond industry would start to recover once liquidity to cutters and polishers improved and prices for rough diamonds matched open market pricing, said James Campbell, CEO of Rockwell Diamonds.
Commenting on fourth quarter operating and financial figures, in which Rockwell posted a year-on-year increase in attributable losses of C$8.2m (2014: C$7.7m), Campbell said that lack of financing for cutters had led to factory closures in southern Africa and India as well as other sites around the world.
“While De Beers’ prices remained stable, open market prices have been substantially lower. Sightholders rejected some 30% of rough diamond allocations as pricing left minimal margin to be made on these diamonds,” said Campbell.
“Banks are not offering financial assistance on loss making rough diamonds with the net result that factories are shutting down in southern Africa, India and other cutting centres around the world,” he added.
“Overall, the industry experienced deflationary pricing due to diamond and gold price reductions. However, there are indications that prices have bottomed out.
“As industry liquidity improves and rough prices from primary suppliers are lowered to match open market pricing, the industry will be on a solid footing for a recovery,” he said.
