De Beers’ Production for Q3 2017 Up 46% Y-o-Y in Carat Terms

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Anglo American, which today released production figures of its various businesses for the third quarter of 2017, reported that De Beers’ rough diamond production for the period was up 46% over Q3 2016 in carat terms.

The increase was “in line with the higher production forecast for 2017, reflecting stable trading conditions as well as the contribution from the ramp-up of Gahcho Kué in Canada,” the Company said while making the announcement.

For Q3 2017, De Beers total production stood at 9.2 million carats as against production of 6.3 mn carats reported for the same period of the previous year. Total production for 2017 to date is 25.3 mn carats as compared to 19.6 mn carats produced in the same period of the previous year, recording an increase in YTD figures by 29%.

Of the total carats recovered for Q3 2017, Debswana accounted for 6.1 mn carats (Q3 2016: 4.6 mn carats) – registering an increase of 33%; Namdeb Holdings’ production amounted to 454,000 carats (Q3 2016: 405,000) – indicating a growth of 12%; DBCM contributed 1.5 mn carats (Q3 2016: 1.1 mn carats) – up by 41%; and De Beers Canada accounted for 1.1mn carats (Q3 2016: 225,000 carats) – an increase of a whopping 398%!

Referring to the Debswana (Botswana) production, the Company explained: “Orapa’s production increased by 60 per cent mainly driven by the ramp-up of Plant 1, which was previously on partial care and maintenance in response to trading conditions in late 2015. Jwaneng’s production increased by 23 per cent as a result of planned increases in feed to plant.”

Namdeb Holdings’ (Namibia) production increase was “primarily as a result of higher mining rates from Debmarine Namibia’s Mafuta vessel”, the Company noted; while DBCM (South Africa) production increased “largely as a result of higher grades at Venetia”.

“Production in Canada increased five-fold to 1.1 million carats due to the ramp-up of Gahcho Kué which reached nameplate capacity in Q2 2017,” the Company reported.

De Beers’ consolidated rough diamond sales volumes in Q3 2017 amounted to 6.5 million carats (6.9 million carats on a total 100 per cent basis) from two sights, compared with 5.3 million carats (5.7 million carats on a total 100 per cent basis) from two sights in Q3 2016. “The increase was driven by a normalisation of demand for lower value goods in 2017,” the Company stated.

The full year production guidance for De Beers has been revised to ~33 million carats (previously 31 – 33 million carats).

News Source: gjepc.org

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Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.

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