24th May 2016 07:15
LONDON (Alliance News) - Anglo American PLC Tuesday said the latest sales cycle to be undertaken by diamond giant De Beers has shown normal seasonal trends have returned to the market but said it is pleased with the ongoing stability of demand for rough diamonds.
Anglo American has an 85% stake in De Beers, which has completed its fourth sales cycle of rough diamonds since the start of the year with a total value of USD630.0 million.
The third sales cycle conducted in April is the only cycle to have generated a higher value this year. Preliminary figures for the third cycle estimated a value of USD660.0 million but this was confirmed to be higher on Tuesday at USD666.0 million.
The first sales cycle at the start of the year still holds the lowest value so far of only USD545.0 million whilst the second cycle was valued at USD617.0 million.
"As normal seasonal trends return to the market, we are encouraged by the continued stability of demand for rough diamonds shown in the fourth sales cycle of 2016," said Philippe Mellier, chief executive of De Beers.
De Beers was the second biggest contributor to Anglo American's overall underlying earnings in 2015. Only the coal division contributed more, but Anglo American will dispose of coal assets in the near term, suggesting De Beers could become the company's biggest driver of earnings in the future.
Anglo American shares were down 0.8% to 593.43 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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