Demand for rough remains subdued
De Beers production
falls by 14% in 2Q
Revises production
guidance from
33mn cts to 31mn cts
for the year!
|
De Beers1 (000
carats)
|
Q2
2019
|
Q2
2018
|
Q2 2019
vs.
Q2 2018
|
Q1 2019
|
Q2 2019 vs.
Q1 2019
|
H1 2019
|
H1 2018
|
H1 2019 vs.
H1 2018
|
|
Botswana (Debswana)
|
5,718
|
6,279
|
(9)%
|
5,950
|
(4)%
|
11,668
|
12,087
|
(3)%
|
|
Namibia
(Namdeb Holdings)
|
335
|
515
|
(35)%
|
483
|
(31)%
|
818
|
1,044
|
(22)%
|
|
South Africa (DBCM)
|
571
|
1,018
|
(44)%
|
382
|
49%
|
953
|
2,111
|
(55)%
|
|
Canada
|
1,075
|
1,185
|
(9)%
|
1,037
|
4%
|
2,112
|
2,253
|
(6)%
|
|
Total carats recovered
|
7,699
|
8,997
|
(14)%
|
7,852
|
(2)%
|
15,551
|
17,495
|
(11)%
|
De Beers rough diamond
production decreased by 14 per cent to 7.7 million carats driven by reductions
in Botswana (Debswana) and South Africa (DBCM). Production guidance has been
revised downwards to ~31 million carats, in response to weaker trading
conditions.
Production at Botswana
(Debswana) decreased by nine per cent to 5.7 million carats. This was driven by
a decrease at Orapa2 of
23 per cent to 2.5 million carats following a planned plant shut down brought
forward from H2 2019, which impacted production in late Q1 and early Q2.
Production at Jwaneng increased by seven per cent to 3.2 million carats, driven
by an increase in tonnes treated.
Namibia (Namdeb Holdings)
production decreased by 35 per cent to 0.3 million carats, driven by Elizabeth
Bay transitioning onto care and maintenance in Q4 2018 and planned maintenance
for the Mafuta crawler vessel.
South Africa (DBCM)
production decreased by 44 per cent to 0.6 million carats due to
lower mined volumes at Venetia as it approaches the transition from open pit to
underground. In addition, Voorspoed production came to an end as it was placed onto
care and maintenance in Q4 2018 in preparation for closure.
Canada production
decreased by nine per cent to 1.1 million carats due to planned lower
grades at GahchoKué. Victor production decreased by four per cent to 0.2
million carats as it reached the end of its life during Q2 2019.
Rough diamond sales were
9.0 million carats (8.3 million carats on a consolidated basis)3 from three sales
cycles compared with 10.0 million carats (9.4 million carats on a consolidated
basis)3 from the
same number of sales cycles in Q2 2018. Demand for rough diamonds remains
subdued as a result of challenges in the midstream with higher polished
inventories, and caution due to macro-economic uncertainty, including the US –
China trade tensions.
The H1 2019 average
realised rough diamond price decreased by seven per cent to US$151/carat (H1
2018: US$162/carat), which was driven by a four per cent reduction in the
average rough price index and a change in the sales mix in response to weaker
conditions.
Full Year Guidance
Production guidance1 is revised to ~31
million carats, the lower end of the previous range (31-33 million carats), in
response to weaker trading conditions experienced in the period.
Note to report:
1: De Beers Group production is on a 100% basis,
except for the Gahcho Kué joint venture which is on an attributable 51% basis.
2:
Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and
Damtshaa.
3: Consolidated sales volumes exclude De Beers Group’s JV partners’
50% proportionate share of sales to entities outside De Beers Group from
Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which
are included in total sales volume (100% basis).
Comments
Post a Comment