De Beers Sales Volume Rises in Positive Market

RAPAPORT... De Beers' sales volume and production grew sharply in thesecond quarter amid strong trading conditions, the miner's parent companyreported Thursday. Rough-diamond sales rose 69% to 10 million carats during thethree months ending June 30, Anglo American said. The increase from 5.9 millioncarats a year ago reflects resurgent demand, as well as the fact that De Beersheld three sights during the quarter rather than two. "Sales volumes benefited from positive sentiment in themidstream following growth in consumer demand for diamond jewelry in late 2017,and a continuing positive outlook," Anglo explained. De Beers' average selling price rose 4% to $162 per carat inthe first half, reflecting a 1.6% year-on-year increase in the miner's rough-priceindex, which monitors the cost of its goods to clients on a like-for-like basis.Demand also shifted to higher-value goods, after Indian demonetization in late2016 led to strong demand for smaller rough in the first quarter of 2017. Salesvolume declined 6% to 18.8 million carats in the first six months of 2018, because post-demonetization demand inflated the figures for the previous year. Production grew 3% to 9 million carats in the second quarterof 2018, and jumped 8% to 17.5 million carats for the half year, as De Beerslifted output to meet stronger demand. The increase also reflects the additionof the Gahcho Ku?(C) mine in Canada, which reached its intended output level -known as commercial production - in March 2017. Debswana, De Beers' joint mining venture with the Botswanagovernment, raised its production by 6% to 6.3 million carats for the quarterin response to trading conditions. Output in Canada rose 17% to 1.2 millioncarats as Gahcho Ku?(C) came onstream, with recovery levels in Namibia up 32% to515,000 carats due to higher grades at land-based projects and improvements inits marine mining operations. Production in South Africa fell 28% to 1million carats after a fatal incident at the Venetia mine in March led to aperiod of suspension. The company has maintained its 2018 production forecast of34 million to 36 million carats, compared with 33.5 million carats last year.Image: De Beers