De Beers' Q3 Production Drops 14% Over 2018
October 22, 19
(IDEX Online) - Anglo American today (Tuesday) announced that De Beers' Q3 production dropped 14 percent to 7.4 million carats compared to Q3 2018 (8.7 million carats). The company said the lower figures were expected with the Victor mine in Canada coming to the end of its life and the transition of Venetia in South Africa to underground production. Year-to-date, De Beers' diamond production stands at 23 million carats, a drop of 12 percent compared to the same period in 2018 when production reached 26.2 million carats. The company said production has also been reduced because of weaker market demand and continued midstream weakness. Notable production highlights included an increase of 22 percent at Orapa In Botswana from a planned increase in the grade of material treated. This was offset by an 18 percent decrease at Jwaneng due to planned lower grade. In Namibia, production decreased by 7 percent to 0.4 million carats, as the Elizabeth Bay land operations were placed on care and maintenance in Q4 2018. South Africa saw the greatest drop with a 60-percent decrease in production to 0.5 million carats because of lower mined volumes at Venetia as it transitions underground. In Canada, production decreased by 34 percent to 0.8 million carats primarily due to the closure of Victor which reached the end of its life in Q2 2019. The miner expects full-year production of ~31 million carats. Rough sales volumes during the quarter reached 7.4 million carats (7.1 million carats on a consolidated basis) from three sales cycles. The same quarter of 2018 saw sales of 5 million carats (4.6 million carats on a consolidated basis) from two sales cycles. De Beers said overall demand for rough diamonds remains subdued because of challenges in the midstream with higher polished inventories and caution due to macroeconomic uncertainty.