Business

De Beers’ sales reach P6.7bn

Mbongeni Mguni | Tuesday March 14, 2023 10:38

Shining bright: De Beers sales ticked up at its last auction held in Gaborone. The diamond giant is engaged in talks with the Government of Botswana for a new sales agreement and renewal of its mining licences. Botswana producers two-thirds of De Beers' annual rough diamond output
 
Shining bright: De Beers sales ticked up at its last auction held in Gaborone. The diamond giant is engaged in talks with the Government of Botswana for a new sales agreement and renewal of its mining licences. Botswana producers two-thirds of De Beers' annual rough diamond output

The performance for the second auction of the year is however 24% lower than the values sold at the corresponding auction last year, a trend that largely reflects stronger than average pricing and demand last year. New CEO, Al Cook said demand continued steadily for rough diamonds in line with the group’s expectations for sales as the year progresses.

He added that De Beers was aware that sightholders, the exclusive list of buyers contracted for De Beers’ auctions, planned more of their purchases for later in 2023, given the economic uncertainty when they were taking their planning decisions at the end of 2022.

Cook added that De Beers was encouraged to see some positive trends in end-client demand for diamond jewellery at the start of the year.

De Beers is cautiously optimistic about the year as China continues to reopen and inflation rates in many major economies begin to decline. However, the global diamond industry has a mixed outlook this year as institutions such as the World Bank warn of a slowdown in the global economy.