24th Nov 2021 08:30
(Alliance News) - Anglo American PLC's De Beers said on Wednesday demand for rough diamonds remained strong even though sales edged down this month.
Rough diamond sales value for the provisional ninth sales cycle fell by 6.9% to USD430 million year-on-year from USD462 million in the same period last year. Compared to the eighth cycle, sales declined by 13% to USD430 million on the month from USD492 million.
The ninth sales cycle covered the period from November 8 to November 23, whereas the eighth cycle represented sales between October 4 and October 19.
Owing to the restrictions on the movement of people and products in various jurisdictions around the globe, De Beers has continued to implement a more flexible approach to rough diamond sales during the ninth sales cycle, it said, with the sight event extended beyond its normal week-long duration.
De Beers Chief Executive Bruce Cleaver said sentiment continued to be positive on the back of strong demand for diamond jewellery from US consumers, and this was reflected in the demand seen for rough diamonds during cycle nine.
"Such demand was in line with expectations given the normal pattern of cutting factory closures in India during the Diwali festival," Cleaver said.
"As we head into cycle 10, we anticipate rough diamond demand will likewise be affected by the Christmas holiday closure of cutting factories in southern Africa, but we expect to see positive industry conditions prevailing into the new year in light of the healthy outlook for the key retail selling season," he said.
Anglo American, a FTSE 100 mining company, owns 85% of rough diamond miner and dealer De Beers.
In Johannesburg, Anglo American shares were up 0.1% at ZAR617.58 on Wednesday morning. The stock was up 1.4% to 2,918.00 pence in London.
By Artwell Dlamini; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Anglo American