3rd Feb 2021 08:53
(Alliance News) - Anglo American PLC on Wednesday said diamond markets improved in January, with provisional first cycle sales higher in 2021 than in the year before.
The London-based diversified miner reported the sales value of rough diamond sales for De Beers in cycle one of 2021 as USD650 million. This is a provisional figure and represents sales as at February 2.
For comparison, the actual sales value in cycle one of 2020 was USD551 million and the sales value in cycle ten of 2020 was USD452 million.
As a result of restrictions on the movement of people and products in various jurisdictions worldwide, De Beers said it has implemented "a more flexible approach" to rough diamond sales during the first sales cycle of 2021, with its Sight diamond sales event extended beyond its normal week-long duration.
Anglo American noted that as a result, the provisional rough diamond sales figure quoted for cycle one reflects the expected sales value for the period from January 18 to February 2 and is still subject to adjustment based on final completed sales.
Bruce Cleaver, chief executive of De Beers, said: "With the midstream starting the year with low levels of rough and polished inventories, and following strong sales of diamond jewellery over the key holiday season in the US, we saw good demand for rough diamonds at the first cycle of the year as midstream customers sought to restock and to fill orders from retail businesses. Sales of rough diamonds are also being supported by expected demand ahead of Chinese New Year and Valentine's Day.
While risks to recovery as a result of ongoing restrictions on the movement of both people and goods persist, we have been encouraged by demand conditions," he added.
Shares in Anglo American were trading 0.3% lower in Johannesburg on Wednesday at ZAR494.00 each,while its London shares were 0.4% lower at 2,416.50 pence.
By Ife Taiwo; [email protected]
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