De Beers’ sales volume and production jumped in the third quarter as the market stabilized and due to the contribution of the recently launched Gahcho Kué mine in Canada.
Rough-diamond sales grew 21% to 6.9 million carats in the three months to September 30, parent company Anglo American said Tuesday.
The improvement came as demand for lower-value goods returned to normal this year, the company explained. Indian consumer demand improved compared to last year, resulting in higher sales of small rough diamonds destined for the local Indian market, a De Beers spokesperson added. Anglo did not disclose De Beers’ sales value for the period, but results from its sights in July and August suggest a 7% drop in the sales amount for the quarter, according to Rapaport records.
Rough production surged 46% to 9.2 million carats, reflecting stable trading conditions and the ramp-up of Gahcho Kué, where the company’s share of production amounted to 930,000 carats for the quarter. As a result, production at De Beers Canada — which also includes the Victor mine — jumped almost fivefold to 1.1 million carats.
Output at Debswana, De Beers’ joint venture with the Botswana government, advanced 33% to 6.1 million carats as production at the Orapa mine increased 60%, driven by the ramp-up of a plant that had been on partial care and maintenance.
De Beers revised its full-year production forecast upward to approximately 33 million carats, representing a 21% increase versus 2016. De Beers had previously projected that output for the year would be in the range from 31 million to 33 million carats.
In the first nine months, sales grew 12% to 26.9 million carats, while production increased 29% to 25.3 million carats.