De Beers maintains full-year guidance, despite lower second-quarter output
Global miner De Beers' rough diamond production decreased by 5% year-on-year to 7.6-million carats in the second quarter as a result of the planned reduction in South Africa while the Venetia openpit transitions to underground operations.
Production in South Africa decreased by 62% to 466 000 ct, compared with the 1.22-million carats produced in the second quarter of 2022.
Venetia continues to process lower-grade surface stockpiles, which will result in temporary lower production levels as it transitions to underground operations, De Beers points out.
Meanwhile, rough diamond production in Botswana increased by 6% year-on-year to 5.8-million carats, driven by the planned treatment of higher-grade ore at Orapa, but partially offset by lower throughput at Jwaneng owing to planned maintenance.
Production in Namibia also increased, by 8% year-on-year to 612 000 ct, primarily driven by the ongoing ramp-up and expansion of the mining area at the land operations.
Production in Canada increased by 6% to 683 000 ct, driven by the treatment of higher-grade ore, despite planned plant maintenance.
Despite the lower second-quarter production, De Beers expects to meet its full-year production guidance of 30-million to 33-million carats.
It notes, however, that demand for rough diamonds has been impacted by the ongoing macroeconomic headwinds.
As a result, it sold 7.6-million of rough diamonds from two sightholder (sights) sales, compared with the 9.4-million carats sold during three sights in the second quarter of 2022.
This is also lower than the 9.7-million carats sold during three sights in the first quarter of this year.
De Beers notes that the average realised price for the first six months of this year was $163/ct – a 23% decrease on the average price of $213/ct achieved in the first half of 2022.
It attributes this to sightholders taking a more cautious approach to planning their 2023 allocation schedule owing to the uncertain macroeconomic outlook.
"The average rough price index decreased by 2%, reflecting the overall softening in consumer demand for diamond jewellery and a build-up of inventory in the midstream," it says.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation