8th Nov 2023 07:44
(Alliance News) - Anglo American PLC on Wednesday reported that rough diamond sales at De Beers plunged as the group cut stock due to tough economic challenges and factory closures in India.
The London-based mining company said provisional rough diamond sales value for the ninth sales cycle of 2023 tumbled to USD80 million, compared to USD200 million in the eighth cycle. On an annual basis, sales crashed from USD454 million in the ninth cycle in 2022.
The provisional rough diamond sales figure quoted for cycle nine represents the expected sales value for the period between October 4 and November 3 and remains subject to adjustment based on final completed sales.
The cycle eight sales took place between September 18 and October 3.
De Beers Chief Executive Al Cook said macroeconomic challenges continued to affect the diamond sector.
"The retail recovery in China remains slow. And the voluntary import moratorium on rough diamonds into India will see extended Diwali holidays and factory closures in the world's largest diamond cutting centre," Cook said.
"In recognition of these conditions, De Beers continued with reduced rough diamond availability in the ninth sales cycle of 2023," he said, adding: "De Beers maintained support for its Sightholders with full purchase flexibility as the midstream re-establishes an equilibrium between wholesale supply and demand."
Anglo American owns 85% of diamond miner and dealer De Beers.
Anglo American shares traded 0.3% lower at ZAR481.63 in Johannesburg in early dealings.
By Artwell Dlamini, Alliance News reporter
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