Rough-Diamond Sales Decline for De Beers Group
Anglo American, the majority owner of De Beers Group, reported a decline in rough-diamond sales for the ninth cycle of the year. This drop can be attributed to reduced diamond availability and the macro-economic challenges faced by the sector.
According to the FTSE 100 diversified mining company, De Beers only achieved $80 million in diamond sales during the ninth sales cycle of 2023. This is significantly lower than the $200 million achieved in the previous eighth cycle of the same year, as well as the $454 million achieved in the ninth cycle of 2022. It's important to note that there are 10 sales cycles throughout the year.
De Beers Chief Executive Al Cook highlighted that the retail recovery in China has been slow. Additionally, a voluntary import moratorium on rough diamonds in India has caused extended Diwali holidays and factory closures in the world's largest diamond cutting center.
Despite these challenges, Cook emphasized that De Beers remained supportive of its Sightholders, offering them full purchase flexibility as the midstream market seeks to strike a balance between wholesale supply and demand.
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