Share

De Beers sales decrease by 16%

Johannesburg - De Beers reported a 16% decrease in total sales to R63.5bn in 2012, the diamond mining company said on Friday.

In the financial year ending December 31, 2012, De Beers' sales of rough diamonds also fell by 15% to R47.8bn, it said in a statement.

Presenting the results in the United Kingdom, CEO Phillippe Mellier said between January 1 and December 31, rough diamond prices fell by 12%, in line with polished diamond prices.

De Beers diamond production totalled 27.9 million carats, while in 2011 production stood at 31.3 million carats.

However, the company enjoyed a strong cash flow of R6.06bn.

Net debt was reduced to R6.3bn excluding shareholder loans.

Mellier said migration of the London-based sales function to Botswana continued ahead of schedule, with relocation of aggregation, quality assurance, and other preparation activities during 2012.

Construction of the Jwaneng mine Cut-8 infrastructure in Botswana was complete, he said.

The Venetia underground project in Limpopo had received final regulatory clearances and would commence in 2013.

Stores licensed to sell the company's Forevermark diamonds grew by 40% to more than 900 independent jewellers worldwide.

Mellier said another major development in 2012 was that Anglo American plc completed its acquisition of a further 40% interest in De Beers, bringing its total shareholding to 85%.

"In 2012 demand for diamond jewellery in the key markets of the US, China and Japan grew, albeit at a slower pace than in 2011," Mellier said.

"This, together with higher polished stock levels, resulted in a decline in polished prices, particularly in the third quarter of 2012."

He said the decrease in rough diamond sales was largely a result of diminished demand, changing product requirements from sightholders, and reduced availability of some goods.

Sales of rough diamonds via De Beers’ auction platform decreased to R3.09bn in 2012 from a previous R3.52bn in 2011, due to subdued buyer activity.

Debswana produced 20.2 million carats, down 2.7 million carats, mainly as a result of the Jwaneng mine slope failure.

In Canada, production remained relatively steady at 1.6 million carats.

De Beers recovered 4.4 million carats in South Africa.

Mellier said the reduced output was partly due to the sale of the Finsch mine in the Northern Cape, completed in September 2011, which contributed 0.9 million carats in 2011.

A total of R513.3m was spent on exploration work programmes in Angola, Botswana, Canada, India, and South Africa.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.02
-0.6%
Rand - Pound
24.00
-0.4%
Rand - Euro
20.52
-0.3%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.40
+0.4%
Palladium
998.40
-0.3%
Gold
2,212.97
+0.8%
Silver
24.70
+0.2%
Brent Crude
86.09
-0.2%
Top 40
68,068
+0.6%
All Share
74,264
+0.5%
Resource 10
56,909
+2.2%
Industrial 25
103,553
+0.3%
Financial 15
16,463
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders