Anglo American’s 8th cycle rough diamond sales for De Beers fell to a provisional $200 million (R3.9 billion) from $508m at the same time last year, and from $370m at the 7th cycle sales at the beginning of the year.
Anglo American said yesterday the Cycle 8 2023 provisional sales value represented sales as at 3 October 2023. Cycle 7 2023 actual sales value represented sales between the dates of 14 and 29 August.
De Beers CEO Al Cook said in a statement: “De Beers reduced its rough diamond availability and made sales of $200m as the industry’s midstream rebalances certain areas of stock accumulation.”
He said De Beers would also continue to support its Sightholders to help re-establish equilibrium between wholesale supply and demand, by providing full flexibility for rough diamond allocations in Sights 9 and 10 of 2023.
De Beers said it would also suspend online rough diamond auctions for the remainder of 2023, and invest an additional $20m in natural diamond marketing to help drive consumer demand during the holiday season.
Anglo American CEO Duncan Wanblad, cited in a report on Reuters, said mining companies had to confront tough decisions such as cutting costs as weak metal price hit earnings - the group announced plans this week to shed an undisclosed number of head-office jobs at offices around the world.
Anglo America’s share price gained 0.25% to R510.23 yesterday morning. The share price has fallen sharply from over R760.00 in January.
CNN reported this week the price of rough diamonds were at low levels at present due to declining sales at the jewellery counter.
The Zimnisky Global Rough Diamond Index showed online that rough diamond prices were at their lowest in a year. The index was at 153.5 near the end of last month, 16.5% lower over a year.
The falling prices had followed two record-breaking years in rough diamond sales, with demand for natural diamond jewellery at an all time high in 2021 and 2022.
BUSINESS REPORT