• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
See More

De Beers ups profit on record sales

Feb 10 2012 10:22

Company Data


Last traded 144
Change 2
% Change 1
Cumulative volume 3861819
Market cap 0

Last Updated: 26-05-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

De Beers, Zim diamond feud gets bloody

Sarb to manage Anglo/De Beers inflows

Oppenheimers sell stake in De Beers

Anglo shareholders back De Beers deal

Anglo to buy Oppenheimer's De Beers stake

Cape  Town - De Beers posted a 21% rise in 2011 earnings on the back of a record sales boom at the start of last year, but the diamond producer reported a dip in annual production and said it expected to continue to rein in output growth in 2012.

The diamond giant, 45% owned by miner Anglo American [JSE:AGL] said it expected jewellery demand to continue to grow thanks to improving US demand and growth in China, though at a lower pace after 2011 records, amid uncertain markets.

It also said it would continue to prioritise maintenance at its mines as it awaited improved demand, and did not expect to increase production in 2012.

In its first full set of earnings since Anglo American agreed in November to take majority control of the diamond miner by buying out the Oppenheimer family stake, De Beers said earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $1.7bn.

Underlying earnings rose 62% to $968m.

The diamond miner, which controls more than a third of the global rough diamond market, said sales of rough diamonds by its Diamond Trading Company were up 27% at $6.5bn.

Prices for rough diamonds jumped by over a third in the first half to well above pre-crisis levels but fell sharply in the last five months of the year as investors fled luxury goods, prompting a drop despite a dearth of new mines, low inventories and rising Asian demand that have been lifting diamonds.

Over the full year, De Beers said DTC prices, which can outperform in a volatile market due to the nature of contracts, increased 29%.

Diamonds represented roughly 5% of Anglo’s earnings in 2010, but that could rise to as much as a fifth of earnings by 2013, according to some analysts’ estimates, as a result of shifts including the acquisition of the Oppenheimer stake.

Anglo said the contribution to its underlying earnings from its De Beers stake totalled $443m in 2011.

De Beers, which vies for the spot of the world’s largest diamond producer in carat terms with Russian state-owned miner Alrosa, said it recovered 31.3 million carats, down from 33 million a year earlier, due to lower production in the second half as the producer preferred to carry out maintenance and reduce production in the light of world diamond prices.

anglo american  |  de beers  |  oppenheimers  |  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

Would you take out a payday loan?

Previous results · Suggest a vote