De Beers Revenue Increases To $3.6bn


Total revenue at the world’s leading diamond company, De Beers, has increased to $3.6 billion in the period that ended 30 June 2022 (30 June 2021: $2.9 billion).
According to De Beers parent company, Anglo American Corporation, financial results for the period (H1) show that the company’s rough diamond sales rose to $3.3 billion (30 June 2021: $2.6 billion), as the midstream replenished their stocks following strong consumer demand over the holiday season.

“Rough diamond sales volumes totalled 15.3 million carats (30 June 2021: 19.2 million carats), with the prior period benefiting from very strong demand recovery following the impact of COVID-19 in 2020,” reads the Anglo results.
“The average realised price rose by 58 percent to $213/ct (30 June 2021: $135/ct), driven by a larger proportion of higher value rough diamonds sold, as well as growth in the De Beers rough diamond price index.”
The Anglo financial further shows that the De Beers rough price index increased by 28 percent compared with the same period in the prior year, reflecting positive consumer demand for diamond jewellery as well as tightness in inventories across the diamond value chain.

Unit costs flat
“Underlying EBITDA increased by 55 percent to $944 million (30 June 2021: $610 million), reflecting the recovery in sales,” says the report. “Unit costs were flat at $59/ct (30 June 2021: $59/ct) as the benefit of higher production was offset by rising inflation and input costs.”
The Anglo financials also that De Beers rough diamond production increased by 10 percent to 16.9 million carats (30 June 2021: 15.4 million carats), reflecting a strong operational performance and higher planned levels of production to meet continued strong demand for rough diamonds, while the first quarter of 2021 was affected by particularly high rainfall in Botswana and at Venetia.
In Botswana, Anglo says production increased by 10 percent to 11.7 million carats (30 June 2021: 10.7 million carats) owing to increased processing at both Orapa and Jwaneng, as well as planned higher grade at Orapa.

One-year extension
“The Government of the Republic of Botswana and De Beers Group have extended their existing agreement for the sale of Debswana’s rough diamond production by 12 months until 30 June 2023,” says the report.
“Following further positive progress towards a new agreement being made in the first half of 2022, the two parties have agreed to the one-year extension to enable the finalisation of the ongoing discussions.”
De Beers Group is a multinational company that specialises in diamond exploration, diamond mining, diamond retail, diamond trading and industrial manufacturing.
De Beers’ major shareholder is Anglo American, which owns 85 percent of the company. The remaining 15 percent is owned by the Government of Botswana.