Anglo American PLC’s (LON:AAL) majority-owned De Beers Group posted a 25% drop in rough diamond sales in the first sales cycle of the year.
De Beers sold US$505mln in rough diamonds in the cycle ended January 28, compared to US$672mln a year ago. In the tenth cycle of 2018, De Beers sold US$544mln in rough diamonds.
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"Rough diamond sales during the first sales cycle of 2019 were lower than those for the equivalent period last year, reflecting higher than normal sales in the previous cycle (cycle 10 2018) and the slow movement of lower value rough diamonds through the pipeline,” said De Beers chief executive Bruce Cleaver.
In a fourth-quarter trading update last week, Anglo said De Beers saw a 12% increase in production to 9.1mln carats, boosted by the ramp up at the Orapa mine. However, the full-year output of 35.3mln carats was in the lower end of the production guidance range of 35-36mln carats.
Rough diamond sales volumes totalled 9.9mln carats from three sales cycles, compared with 8.2mln carats a year ago.
But full-year rough diamond sales volumes dropped 4% 33.7mln carats, reflecting less demand for lower value rough diamonds in the second half of 2018.