De Beers Production and Sales Slide

RAPAPORT… De Beers’ production fell 5% to 8.7 million carats in the
third quarter due to planned reductions in mining volumes in Botswana and South
Africa.



The miner processed lower-grade ore at its Jwaneng mine in
Botswana, resulting in overall output for Debswana — its joint venture with the
nation’s government — declining 6% to 5.7 million carats.


It also carried out a scheduled shutdown of its Venetia mine
in South Africa to upgrade the processing plant ahead of the asset’s transition
from open-pit to underground operations. Total production in South Africa slid
14% to 1.3 million carats.


Production in Canada grew 5% to 1.2 million carats amid higher
grades at the Victor mine, which will close in 2019. Its share of production at
Gahcho Kué, the miner’s other asset in Canada — which it owns in partnership
with Mountain Province — remained flat at 927,000 carats. Namibian output
increased 1% to 460,000 carats.


Rough-diamond sales fell 28% to 5 million carats as De Beers
allowed sightholders to defer their allocations of some smaller, lower-value goods
during its seventh cycle in light of weak market conditions. Revenues from
rough sales for the quarter were “broadly in line” with a year ago, the miner
added.


Production increased 3% to 26.2 million carats in the first
nine months of the year, while sales slipped 11% to 23.9 million carats. The
company has maintained its 2018 production forecast of 34 million to 36 million
carats, but expects the actual number to be in the higher end of that range.


Image: De Beers’ Orapa mine. (De Beers)