MARKET NORMALISED
De Beers increases production forecast
The world’s largest rough diamond producer reports a 30% jump in total revenue for 2016 to $6.1bn as rough sales shoot up 37% to $5.6bn
De Beers forecast it would produce up to 33-million carats in 2017, a level last seen in 2014, as demand for its diamonds improved in 2016. De Beers, 51% partner in the new Gacho Kue mine coming into full production in Canada, said it would produce between 31-million and 33-million carats in 2017 compared to the 27.3-million carats in 2016. The world’s largest rough diamond producer by value produced 32.6-million carats in 2014. De Beers reported a 30% jump in total revenue for 2016 to $6.1bn as rough diamond sales shot up 37% to $5.6bn, with the company mopping up much of the 6-million carats of inventory left behind in a difficult 2015. "The market is much more normalised than it was a year ago. The levels of inventories in rough and polish our customers have are normal," said De Beers CEO Bruce Cleaver. Prices for polished diamonds were expected to rise from the 2016 level, which would determine rough diamond prices, he said. While De Beers, which is 85% owned by Anglo American, ...
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