De Beers adds some sparkle to reporting season: production up, sales of $3.3bn
World’s top diamond producer De Beers, a unit of Anglo American (LON: AAL), became one of the very few miners to log positive results, reporting “steady” total first-half sales of $3.3 billion.
The company also said it expects the global polished diamond market to grow more than 2% this year driven by improving US demand.
“De Beers expects moderate growth in diamond jewellery demand in the remaining six months of 2013, supported by improving sentiment in the U.S. market,” the firm said in a statement Friday.
“Conditions in India and Japan remain more uncertain due, in part, to the continuing volatility of their currencies,” it added.
Production in the first half of 2013 climbed 7.6% to 14.3 million carats and De Beers said full-year output would be “broadly in line” with the 27.9 million carats in 2012.
CEO Philippe Mellier attributed the higher rough diamond production to improved ore grades at its Orapa and Jwaneng mines in Botswana.
Last year, Anglo American acquired an additional 40% of De Beers from South Africa’s Oppenheimer family, adding to an existing 45% stake.