De Beers dims as demand weakens
De Beers, the world’s largest diamond producer, lowered its 2015 output target for the second time this year as demand for the gems continues to weaken.
De Beers cut its full-year goal to between 29 million to 31 million carats from an earlier target of 30 million to 32 million carats.
De Beers and other diamond producers are under pressure to cut supply and lower prices as traders, cutters and polishers struggle to turn a profit amid a squeeze on credit and as jewellery sales languish.
“It’s been a tough couple of months. The market is currently tightening up,” Anglo CEO Mark Cutifani recently told investors.
De Beers reported first-half sales of $3.02 billion (R38.14 billion) on Friday after mining 15.6 million carats.
De Beers contributed $360 million of its underlying earnings to Anglo American, which is more than a third of the mining company’s profit.