De Beers' Rough Production Down 5% In Third Quarter

By Albert Robinson / October 23, 2018 / www.idexonline.com / Article Link

(IDEX Online) - De Beers reported that rough diamond production for Q3 decreased 5% to 8.7 million carats due to planned volume reductions in Botswana (Debswana) and South Africa (DBCM).

 

In Botswana, production declined 6% to 5.7 million carats due to the planned processing of lower grade material at Jwaneng. Production at Orapa remained in line with Q3 2017 at 2.6 million carats.

 

In Namibia production was flat at 460,000 carats.

 

In South Africa production decreased 14% to 1.3 million carats due to a planned shutdown at Venetia to upgrade the processing plant ahead of the transition from open cut to underground operations.

 

Production increased 5% to 1.2 million carats, driven by higher grades at Victor, which is approaching the end of its life. Gahcho Ku?(C) production was in line with Q3 2017.

 

Rough sales volumes were 5.0 million carats (4.6 million carats on a consolidated basis) from two sales cycles in Q3 2018, compared with 6.9 million carats (6.5 million carats on a consolidated basis) from two sales cycles in Q3 2017. Rough sales volumes were down as a result of sightholders being given the opportunity during the seventh Sight of 2018 to re-phase the allocation of some smaller, lower value rough diamonds. Rough sales revenues were broadly in line with Q3 2017.

 

Full Year Guidance

Full year production guidance remains at 34 to 36 million carats but is expected to be at the higher end of the range.

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