De Beers Heads for Higher Earnings, as Alrosa is hit by Sanctions

By John Jeffay / May 23, 2022 / www.idexonline.com / Article Link

(IDEX Online) - De Beers is heading for a bigger market share and an increase of almost 10 per cent in earnings this year, says Morgan Stanley, as sanctions continue to hit rival Russian exports.The UK-based miner is expected to earn $1.2bn before interest, tax, depreciation and amortization (EBITDA), according to the investment management and financial services company. Last year's figure was $1.1m, up from $417m in Covid-hit 2020.Morgan Stanley said De Beers was gaining market share amid reluctance to buy Russian diamonds and India's declining rough imports from Alrosa.It said polished prices generally were down eight to 10 per cent from their 2022 peaks. Lower quality stones under 0.3 carats saw the largest correction, down by 10 per cent. Stones between 0.3 and one carats were down by one to three per cent.Pic courtesy De Beers

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