Sarine Technologies

[weii]

Thanks for the valuable information!

[pianist]

One year submit two times?

[ghchua]

One year submit two times?

Unfortunately, the answer is yes. You have to do the submission for every dividend payout. This is because they straight away deduct 20% of the dividend for tax and then transfer the remaining 80% to CDP for shareholders.

[BlueKelah]

wow this company has come down in price by half since peaked last year. What happened? Is business hit badly by current slowdown this year? is it a proxy for the diamond prices?

[ghchua]

wow this company has come down in price by half since peaked last year. What happened? Is business hit badly by current slowdown this year? is it a proxy for the diamond prices?

A combination of factors after post pandemic surge last year. Revenue had came down mainly due to lower capital equipment sales. Geo-political factors, piracy in India etc.

[specuvestor]

(Bloomberg) --One of the world’s most popular types of rough diamonds has plunged into a pricing free fall, as an increasing number of Americans choose engagement rings made from lab-grown stones instead.
Diamond demand across the board has weakened after the pandemic, as consumers splash out again on travel and experiences, while economic headwinds eat into luxury spending. However, the kinds of stones that go into the cheaper one- or two-carat solitaire bridal rings popular in the US have experienced far sharper price drops than the rest of the market.

The reason, according to industry insiders, is soaring demand for lab-grown stones. The synthetic diamond industry has paid special attention to this category, where consumers are especially price sensitive, and the efforts are now paying off in the world’s biggest diamond buyer.

-snip-

De Beers has responded to weakening demand by aggressively cutting prices for the category known as “select makeables” — rough diamonds between 2 and 4 carats that can be cut into stones about half that size when polished, yielding centerpiece diamonds for bridal rings that are high quality, but not flawless.

De Beers has cut prices in the category by more than 40% in the past year, including one cut of more than 15% in July, according to people familiar with the matter.

The one-time monopoly still wields considerable power in the rough diamond market, selling its gems through 10 sales each year in which the buyers — known as sightholders — generally have to accept the price and the quantities offered.

De Beers typically reserves aggressive cuts as a last resort, and the scale of the recent price falls for a benchmark product is unprecedented outside of a speculative bubble crash, traders said.

In June 2022, De Beers was charging about $1,400 a carat for the select makeable diamonds. By July this year, that had dropped to about $850 a carat. And there may be more room to fall: the diamonds are still 10% more expensive than in the “secondary” market, where traders and manufacturers sell among themselves.

https://sg.yahoo.com/style/the-elite-clu...55229.html

Funny that it makes no mention of manmade diamonds affecting the margin and supply

What is the purpose of diamonds? Vanity. Same with branded bags.

Fake diamonds in the past is too obvious. So were fake bags. Now not so obvious. That's why affluents going much higher end to Hermes because you can't really tell a Prada from fake anymore but you can sort of tell if the person can afford Hermes Tai-tais  are not going to ask for diamond grading certificates

That's the world of vanity they operate in. So if lab diamonds and real diamonds cannot be distinguishable, my guess is that it will have huge impact on diamond industry, provided the lab diamonds are able to break in. Sometimes it's mere politics, not quality. If lab diamonds manage to get a foothold in the market, I would say it WILL impact Sarine.

And we all know what is the value of diamonds in secondary market because of De Beers.

https://www.valuebuddies.com/thread-2623...#pid147651

[donmihaihai]

LGD will get cheaper and cheaper since they are manufactured and they look exactly the same as mined diamond. And if the industry is not able to create differentiation between the two. Soon enough tai tai will not be buying diamonds.

Consequences is that will kill both LGD and mined diamond. LGD is here because of the high value of mined diamond. I don't see and don't think this happening.

[specuvestor]

I think it will largely depend on the cost of making LGD rather than the price of mined diamond per se ie from extraordinary profit to dwindle down to commodities over time.

As a spectator I'm more curious how De Beers will respond / reposition

[donmihaihai]

I dont know much about De beers or any other diamond miners. Just see them as another commodity producers.

Luxury jewellery brands will be way more interesting. How are they going to sell high price jewellery without high price diamonds.

So far I see or think is LGD open up or expand the mass market. The question is how they going to make mined diamond stand out. Gonna be the plain old thing. Fake and real I believe. If they failed. Diamond lose it value then what is the point of growing cheap diamonds. Or the industry,mined and LGD might not be there anymore in the future

[CY09]

One of the main demand for de beers diamond is due to its successful marketing in 1947 that to propose to a girl, a diamond ring is a must. Before 1947, a proposal gift took on many other forms and only 10% of proposals in USA involved a diamond.

De Beers example was a classic marketting of selling snow to snowmen. From 1947, De Beers diamond supply shot up the roof to meet the demand it brilliantly created from marketing. Thus earnings expansion. Take for example in Japan, now almost all brides to be expect a diamond ring, before 1947, the no of brides with diamond rings was nearly 0

Come 2020 and onwards, the slogan is still eteched in every male's mind that a diamond (ring) is still needed. However de beers is no longer the only diamond supplier in town. There are new suppliers called the lab grown diamonds (LGD) who are so similar to natural diamonds that even experts jewllers cant tell the difference (this has been proven). It takes only very skilled professionals or those with microscopes to accurately certify it.

These LGD are now being less expensive and less carbon emissions. Once diamonds can be something that is produced by labs, I wonder what stands out