De Beers’ Q2 Di­a­mond Pro­duc­tion Rises 36% To 8.7m ct

Solitaire - - CONTENTS -

De Beers re­ported that di­a­mond pro­duc­tion in the sec­ond quar­ter of 2017 in­creased 36% to 8.7 mil­lion carats in line with higher pro­duc­tion fore­cast for 2017, re­flect­ing sta­ble trad­ing con­di­tions as well as the con­tri­bu­tion from the ramp-up of Gah­cho Kué in Canada.

In Botswana, Deb­swana’s Q2 pro­duc­tion in­creased 14% to 5.9 mil­lion carats. Orapa’s pro­duc­tion in­creased 44% to 2.918 mil­lion carats driven by the ramp-up of Plant 1, which was pre­vi­ously on par­tial care and main­te­nance in re­sponse to trad­ing con­di­tions in late 2015. This was marginally off­set by Jwa­neng where pro­duc­tion de­creased by 3% to 2.913 mil­lion carats.

Namibia-based Namdeb Hold­ings saw a 32% in­crease to 0.39 mil­lion carats as a re­sult of Deb­ma­rine Namibia’s Mafuta ves­sel be­ing on planned ex­tended in-port main­te­nance in the sec­ond quar­ter of 2016.

De Beers Con­sol­i­dated Mines in South Africa re­ported a pro­duc­tion in­crease of 71% to 1.4 mil­lion carats largely as a re­sult of higher grades at Vene­tia.

Pro­duc­tion in Canada in­creased al­most six-fold to 1.01 mil­lion carats due to the

Orapa’s pro­duc­tion in­creased 44% to 2.918 mil­lion carats driven by the ramp-up of Plant 1, which was pre­vi­ously on par­tial care and main­te­nance in re­sponse to trad­ing con­di­tions in late 2015. This was marginally off­set by Jwa­neng where pro­duc­tion de­creased by 3% to 2.913 mil­lion carats.”

ramp-up of Gah­cho Kué to name­plate ca­pac­ity.

Con­sol­i­dated rough di­a­mond sales vol­umes in Q2 2017 were 5.4 mil­lion carats (5.9 mil­lion carats on a to­tal 100% ba­sis) from two sights, com­pared with 9.6 mil­lion carats (10.2 mil­lion carats on a to­tal 100% ba­sis) from three sights in Q2 2016. Apart from the additional sight in Q2 2016, the de­crease was ex­pected given the strong lev­els of mid­stream re­stock­ing in H1 2016.

For H1 2017, con­sol­i­dated sales vol­umes were 19.1 mil­lion carats (20.0 mil­lion carats on a to­tal 100% ba­sis), com­pared with 17.2 mil­lion carats (18.3 mil­lion carats on a to­tal 100% ba­sis) in H1 2016.

The av­er­age re­alised price of $156/ ct in H1 2017 was 12% lower than in H1 2016. This re­flected strong de­mand in sight 1 2017 for lower value goods held in stock at De­cem­ber 31st 2016, fol­low­ing a re­cov­ery from the ini­tial im­pact of In­dia’s de­mon­eti­sa­tion pro­gramme in late 2016. The lower value mix was par­tially off­set by a higher av­er­age rough price in­dex, up 4%.

De Beers’ full-year pro­duc­tion guid­ance re­mains un­changed at 31-33 mil­lion carats, sub­ject to trad­ing con­di­tions.

A haul truck at Gah­cho Kué mine. Pho­tog­ra­pher Bill Braden © De Beers/An­glo Amer­i­can

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