De Beers dims as de­mand weak­ens

CityPress - - Business - – Bloomberg

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.

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