De Beers production decreased by 14%

DeBeers Production guidance revised to 32-34 million for 2021 

Anglo American plc, presented production report for the fourth quarter ended 31 December 2020. Mark Cutifani, Chief Executive of Anglo American, said: "The strong performance recovery in the second half continued through the fourth quarter, following the Covid-19 disruptions earlier in the year.  

As expected, second half production returned to 95% of 2019 rates, benefiting from strong performances in copper at Los Bronces in Chile and in iron ore at Minas-Rio in Brazil.  The recovery was all the more credible given planned maintenance at both the Collahuasi copper and Kumba iron ore operations and the suspension of operations at the Grosvenor metallurgical coal mine.

"As we begin 2021, we are continuing to see positive demand for rough diamonds, supported by consumer demand for diamond jewellery in the holiday selling season.  While it is still too early to signal a strong and sustained recovery, the resilience in demand in spite of ongoing Covid-19 impacts is very encouraging. 

"While many jurisdictions are experiencing a new wave of Covid-19 infections, our extensive health measures and revised operating procedures have helped keep our people safe and healthy, while supporting solid production and cost management efforts across our global operations." 

At De Beers: front, rough diamond production decreased by 14% to 6.7 million carats, driven by continued planned reductions in response to the lower demand for rough diamonds caused by the Covid-19 pandemic and operational challenges at Orapa that led to lower than expected production. Covid-19 related measures remain in place to safeguard the workforce while maintaining operational continuity. 

In Botswana, production decreased by 28% to 4.3 million carats remained driven by the planned treatment of lower grade material at Jwaneng, where production decreased by 56%. This was partly offset by a 9% increase at Orapa due to a planned improvement in grade, despite a slower than anticipated plant restart in December following scheduled maintenance, as well as power supply interruptions affecting plant availability.

Namibia production decreased by 26% to 0.3 million carats as the majority of the marine fleet remobilised during Q4, following the Q3 stoppage. 

South African production increased to 1.3 million carats due to the expected improvement in ore grade from the last cut of the open pit at Venetia as the mine continues to transition to underground operations. Production in Canada decreased by 23% to 0.8 million carats, as maintenance resulted in lower plant throughput. 

Demand for rough diamonds showed positive trends in the fourth quarter of 2020, and the indications are that encouraging levels of consumer demand for diamond jewellery continued during the holiday season in the US, while China also performed well. Rough diamond sales totalled 6.9 million carats (6.4 million carats on a consolidated basis)(2) from two sights, compared with 6.6 million carats (6.5 million carats on a consolidated basis)(2) from three sights in Q3 2020, and 7.0 million carats (6.6 million carats on a consolidated basis)(2) from two sights in Q4 2019. 

The full year consolidated average realised price decreased by 3% to $133/ct (2019: $137/ct), as a 10% reduction in the average rough price index was partly offset by an increased proportion of higher value rough diamonds sold in 2020. 

2021 Guidance at DeBeers for Production is revised to 32-34 million carats (previously 33-35 million carats) (100% basis), subject to trading conditions, due to ongoing operational challenges and lower expected production from the final cut at Venetia.