The company expects to earn 32 to 34 million carats in the 12 months. Its previous forecast was for 30 to 33 million carats, parent Anglo American said.
Sales of rough diamonds have increased by 19% year-on-year to 9.4 million carats in the second quarter. Partly due to the scheduling of three targets during the period, compared to two a year earlier. The company will announce the value of sales in its full interim results.
“In the first half of the year, consumer demand for natural diamonds is still strong. However, deteriorating global macroeconomic conditions and reduced consumer spending may affect demand for diamond jewellery,” management explained.
“However, sanctions against Russia, together with the decisions by some US-based jewellery companies to apply their own restrictions on Russian diamond purchases and the continued development of provenance initiatives... has the potential to support continued strong demand for De Beers” rough diamonds.".
The decline in production was by 4% year-on-year to 7.9 million carats for the quarter. This as a result of processing lower grade ore at the company's mines in Canada and Botswana.
In the first half of 2022, sales declined by 17% to 17.3 million carats after a strong rebound a year ago.
However, the average price had an increase of 58% to $213 per carat on a “consolidated” basis. But the exception was sales of raw products by the joint venture partners. Thus the product mix had a shift towards higher value items and market prices were trending upwards. Hence the company's raw price index, which has control over like-for-like prices, jumps 28% compared to H1 2021.
“It reflects positive consumer demand for diamond jewellery, as well as tight inventory across the diamond value chain,” Anglo American said. First-half production was up 10% to 16.9 million carats.
