Advanced Search

Catoca's Production Falls 4% in 2010

Jul 24, 2011 10:08 AM   By Avi Krawitz
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT... Production at the Catoca mine in Angola fell 4.5 percent year on year to 6.741 million carats in 2010, while management warned that the recovery in rough diamond prices should be viewed with caution.

“Although we had seen the recovery of the prices of diamonds, this time recommends the maintenance of a parsimonious management to the extent that the aforementioned recovery in prices was based solely on an increased demand in Asia, especially in China and India,” management wrote in its annual report.  “An economic recovery in countries that are traditionally consumers of diamonds, such as the United States, Japan and the European Union, is not expected in the short term.”

Catoca reported that it sold 6.852 million carats in 2010 for an average price of $76.95 per carat, representing an increase of 24 percent from the previous year. Sales rose 20 percent to $527 million in 2010 and net profits grew 59 percent to $111 million, as previously reported.  Catoca’s sales volume of 6.852 million carats represented 86 percent of Angola’s total production sold and 65 percent of sales by value.

Production declined as the diamond content found ion its processed ore fell to 0.64 carats per ton from 0.72 carats per ton in 2009. Management did not say what caused the decline.

In 2010, Catoca shareholders included Angola’s state mining company, ENDIAMA, and Russian miner ALROSA, which each held a 32.8 percent stake in the mine, while Lev Leviev’s LLI Holding held 18 percent and the Brazilian company Odebrecht had a 16.4 percent stake. Rumors that Leviev has divested from the mine remain unconfirmed.

Tags: Angola, Avi Krawitz, Catoca mine, diamonds, ENDIAMA, Lev Leviev
Similar Articles
Alrosa International Mine 150Alrosa Mine Restarts Following Virus Closure
Jun 30, 2020
Alrosa has resumed operations at its International underground mine following a brief suspension after several employees
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2020 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.