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JOHANNESBURG - Diamond-miner De Beers said on Wednesday, sales in its third sales cycle of 2023 climbed almost nine per cent from the second, with the company saying it is seeing some encouraging signs regarding demand for jewellery.

Sales rose to US$540 million (R9.9 billion) in the third cycle from US$497 million in the second, though sales were still down from US$566 million earned in the third sales cycle of 2022.

De Beers, majority owned by Anglo American, holds ten sales cycles per year in Botswana, Namibia and South Africa, where customers will inspect their rough diamond allocations before deciding whether to purchase them.

Rough

Global sightholder sales account for 90 per cent of the group’s sales of rough diamonds by value.

“We have continued to see good demand for our rough diamonds over the third sales cycle of the year as we move into the second quarter of 2023,” said De Beers CEO Al Cook in a statement.

“Sales were in line with expectations and we continue to see some encouraging positive trends in consumer demand for diamond jewellery, not least in China where we’re beginning to see some signs of recovery in consumer confidence following the relaxation of travel restrictions.”

Gaming and leisure group Grand Parade Investments said on Tuesday the mandatory offer from major shareholder GMB Liquidity Corporation had closed, with the effect of that company raising its stake by 4.49 percentage points to 53.65 per cent.

GMB had built up a just over 35 per cent stake in the firm in 2022, above the threshold requiring a mandatory offer, with its R3.33 per share offer representing a less than 1 per cent premium to Grand Parade’s shares at the time it was made.

Little-known GMB is headed by retired merchant banker and horse racing enthusiast Greg Bortz, who is the Sole Director and Chairperson.

It had indicated it wanted Grand Parade to remain listed and continue current business practices, but with the intention that Bortz would become chairman after implementation, the circular for the mandatory offer reads.

Announced

Grand Parade also announced on Tuesday Chairman Alexander Abercrombie had resigned with effect from April 7, the day after the mandatory offer closed.

Valued at R1.6 billion on the JSE, Grand Parade had been formed in 1997 as the black empowerment partner of Sun International in SA, then bulking up its gaming interests and getting into fast food.

It listed on the JSE in 2008, and has spent the past few years looking to unlock value for shareholders.

It sold its Burger King SA licence, closed unprofitable investments, and unbundled its stake in Spur to shareholders.

The remaining assets consist of minority investments in SunWest International, the Golden Valley Casino and SunSlots, a minority investment in Infiniti Gaming Africa, and two investment properties.

Grand Parade’s shares were unchanged at R3.40 on Tuesday afternoon.