JOHANNESBURG (miningweekly.com) – De Beers’ rough diamond sales for the first cycle of the year improved significantly to $540-million, compared with $248-million in the final sales cycle of 2015.
The miner on Tuesday said a positive holiday season in the US from a retail perspective, low levels of rough diamond purchases by the midstream in the fourth quarter of 2015 and a subsequent reduction in manufacturing had led to polished diamond stocks pulling through the pipeline, resulting in firmer prices for polished diamonds.
Rough diamond demand had broadened across the entire product range as cutting and polishing factories began to increase their activity, it added.
“We are encouraged by the result of the first sales cycle of 2016, and will keep working closely with our customers to deliver sustainable improvements in the diamond industry in 2016,” commented CEO Philippe Mellier.
Investec analysts noted that the company had not provided any indication of pricing adjustments nor if there were any deferrals.
"Nevertheless, if $540-million has been sold this is a relatively good start for the year," they said.