De Beers produces 8.5 mn cts in 1Q

Anglo American reports rough diamond production increased by 15% to 8.5 million carats in the first quarter of 2018, compared to the same period of 2017. Reflecting the ramp-up of production from Gahcho Kué in Canada, which reached nameplate capacity in Q2 2017 and increased production from Orapa in Botswana (Debswana) in response to the sustained healthy trading conditions.

 

Botswana (Debswana) production increased by 12% to 5.8 million carats. Orapa production increased by 26% to 2.8 million carats mainly due to an increase in tonnes treated in response to sustained healthy trading conditions.

Namibia (Namdeb Holdings) production increased by 12% to 0.5 million carats as a result of accessing consistently higher grades at the land based operations.

 

South Africa (DBCM) production was in line with Q1 2017 at 1.1 million carats. Canada production increased by 69% to 1.1 million carats due to the ramp-up of Gahcho Kué, which reached nameplate capacity in Q2 2017.

Total rough diamond sales volumes in Q1 2018 were 8.8 million carats (8.4 million carats on a consolidated basis(3)) from two Sights, compared with 14.1 million carats (13.7 million carats on a consolidated basis(3)) from three Sights in Q1 2017.

 

In addition to the difference in the number of Sights over the period, Sight 1, 2017 also saw an unusually strong demand for lower value goods following the effects of Indian demonetisation in Q4 2016, leading to higher than normal sales volume.

 

Mark Cutifani, Chief Executive of Anglo American, said: “Our operations have made a solid start to 2018, delivering a 4% increase in total production. This reflects our consistent focus on driving efficiency across our portfolio and continuing our strong performance of Q4 2017 despite the suspension of operations at Minas-Rio.”

Full year production guidance remains unchanged at 34-36 million carats, subject to trading conditions.

 

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