RAPAPORT… De Beers will see stable production until 2024, management predicted, as the miner maintains a positive outlook on diamond demand.
It expects to extract between 30 million and 33 million carats in each of the next three years, following planned output of about 32 million carats this year, parent company Anglo American said Friday in an investor conference.
Consumer appetite for diamonds remains strong, as do the sector’s long-term prospects, commented Anglo American CEO Mark Cutifani. A restructuring at De Beers is helping the company reduce the time it takes for a stone to move from mine to shopper, he added.
“We’ve seen a 23% increase in [like-for-like rough] prices since November last year,” the executive explained. “We [previously said] we’d expect to see a 30% increase over two years, so we’re running well ahead of that schedule. It really does reflect the supply issues in the industry, the opportunities we see, and the good work [De Beers CEO] Bruce [Cleaver] and the guys have done.”
The group plans to report De Beers’ final 2021 production figures on January 27, 2022, and its full earnings on February 24.
Image: An engineer at De Beers’ Jwaneng mine in Botswana. (Ben Perry/Armoury Films/De Beers)
De Beers Plans Steady Output Through 2024
The Bottom Line
- De Beers plans to maintain annual production between 30 million and 33 million carats through 2024.
- The company reported a 23% increase in like-for-like rough diamond prices since November 2020, outpacing earlier forecasts.
- A restructuring effort is accelerating the supply chain, reducing the time from mine extraction to consumer purchase.
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