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De Beers Raises Production Plan
Jul 21, 2022 10:14 AM
By Rapaport News
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RAPAPORT... De Beers has increased its production outlook for 2022, citing positive demand and strong performance at its mines in the first half of the year.
The company expects to recover 32 million to 34 million carats across the 12 months, up from its previous guidance of 30 million to 33 million carats, parent Anglo American said Thursday.
Rough-diamond sales rose 19% year on year to 9.4 million carats in the second quarter, partly because of the scheduling of three sights during the period, compared with two a year earlier. The miner will release the sales value in its full interim results, which are slated for publication next Thursday.
“While consumer demand for natural diamonds continued to be robust in the first half, a deterioration of global macroeconomic conditions and reduced consumer spending could impact demand for diamond jewelry,” management explained. “Despite this, the combination of ongoing sanctions against Russia, decisions from a number of US-based jewelry businesses to apply their own restrictions on purchases of Russian diamonds, and continued development of provenance initiatives…has the potential to underpin continued robust demand for De Beers’ rough diamonds.”
Production dropped 4% year on year to 7.9 million carats for the quarter as the company treated lower-grade ore at its mines in Canada and Botswana.
For the first half of 2022, sales slipped 17% to 17.3 million carats, following the strong recovery that took place a year earlier.
However, the average price increased 58% to $213 per carat on a “consolidated” basis — excluding rough sales by joint-venture partners — as the product mix shifted toward higher-value items and market prices rose. The company’s rough-price index, which tracks like-for-like prices, jumped 28% compared with the first half of 2021, “reflecting positive consumer demand for diamond jewelry, as well as tightness in inventories across the diamond value chain,” Anglo American said.
First-half production grew 10% to 16.9 million carats.
Image: Rough diamonds on display at the De Beers offices in Calgary, Canada. (Ben Perry/Armoury Films/De Beers)
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Tags:
Botswana, Canada, De Beers, Jewelry, mining, Production, Rapaport News, rough, Rough Diamonds, rough market, US
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