• Clueless leaders

    Zim's leaders are clueless about managing the economy or leading the nation, says Malcom Sharara.

  • Govt is out of touch

    Journalists seems to know more than those paid to govern us, says Mandi Smallhorne.

  • Terry Bell's Inside Labour

    Private firms can't be blamed for picking up anything lucrative on offer, says Terry Bell.

All data is delayed
See More

De Beers sales up 33%

Jul 26 2011 08:45
I-Net Bridge
Johannesburg - Diamond miner De Beers on Tuesday reported diamond sales of $3.5bn for the half year to end June 2011 - up 33% from the same period last year, and De Beers' highest ever sales figure recorded for the first half of the year.

The group said this was driven by price growth of approximately 35%, buoyed by continued retail demand from the Indian and Chinese consumer markets and stronger than expected demand in America.

It reported record EBITDA of almost $1.2bn - a 55% increase over 2010's $762m, reflecting the impact of excellent price growth during the period.

Carats recovered during the period amounted to 15.53 million, in line with the first half's 15.43 million carats, and reflecting the impact of maintenance and asset management difficulties and, to an extent, excessive rainfall in southern Africa.

It reported free cash flow of $469m - a reduction of 24% on last year due to the timing of stock purchases in the current period compared with 2010.

The group noted that sales during the period have been exceptional, driven mainly by continued growth in the Middle East, Indian and Asian retail markets and their impact on rough price growth.

"De Beers has continued to focus on efficiency improvements and on maintaining a lower sustainable level of overhead base, which has resulted in a favourable impact on the bottom line."

Looking ahead, De Beers said despite the ongoing turmoil with the global economy, it is encouraged by the continued strong growth in price and demand during the first six months of 2011.

"De Beers is confident that the exceptional growth in retail markets in India and Asia will continue to drive demand for diamonds. Reports from the recent JCK trade show indicate that the all-important Christmas season in the US, and Diwali, are set to be strong."

de beers  |  diamonds


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote