De Beers Q3 production reaches 8.7mn cts
Anglo American just announced its Production Report for the third quarter ended 30 September 2018. At the juncture Mark Cutifani, Chief Executive of Anglo American, said, “Our focus on driving efficiency and productivity across the business resulted in another strong quarter, with volumes 1% higher than the solid operational performance seen in Q3 2017.
Production per employee has increased by 5% in 2018, compared to 2017, as we maintain relentless discipline on controllable costs yet, more than offsetting planned lower volumes at De Beers and the impact of rail infrastructure constraints at Kumba in the first half of the year.”
According to the available report, De Beers production decreased by 5% to 8.7 million carats due to expected lower grades at Jwaneng and lower volumes at Venetia, due to a shutdown to upgrade its processing plant ahead of its transition from open cut to underground operations.
De Beers(1) | Q3 2018 | Q3 2017 | Q3 2018 vs. Q3 2017 | Q2 2018 | Q3 2018 vs. Q2 2018 | YTD 2018 | YTD 2017 | YTD 2018 vs. YTD 2017 | |
Botswana (Debswana) | 000 carats | 5,699 | 6,056 | (6)% | 6,279 | (9)% | 17,786 | 17,180 | 4% |
Namibia (Namdeb Holdings) | 000 carats | 460 | 454 | 1% | 515 | (11)% | 1,503 | 1,317 | 14% |
South Africa (DBCM) | 000 carats | 1,337 | 1,548 | (14)% | 1,018 | 31% | 3,448 | 4,059 | (15)% |
Canada | 000 carats | 1,178 | 1,120 | 5% | 1,185 | (1)% | 3,432 | 2,764 | 24% |
Total carats recovered | 000 carats | 8,674 | 9,178 | (5)% | 8,997 | (4)% | 26,169 | 25,320 | 3% |
At DeBeers Rough diamond production decreased by 5% to 8.7 million carats due to planned volume reductions in Botswana (Debswana) and South Africa (DBCM). Production decreased at Botswana (Debswana) by 6% to 5.7 million carats due to the planned processing of lower grade material at Jwaneng. Production at Orapa remained in line with Q3 2017 at 2.6 million carats.
Namibia, at Namdeb Holdings production was flat at 0.5 million carats. South Africa (DBCM) production decreased by 14% to 1.3 million carats due to a planned shutdown at Venetia to upgrade the processing plant ahead of the transition from open cut to underground operations.
Canada production although increased by 5% to 1.2 million carats, driven by higher grades at Victor, which is approaching the end of its life. Gahcho Kué production was in line with Q3 2017.
Rough sales volumes amounted to 5.0 million carats that is 4.6 million carats on a consolidated basis, from two sales cycles in Q3 2018, compared with 6.9 million carats that is 6.5 million carats on a consolidated basis, from two sales cycles in Q3 2017.
Rough sales volumes were down as a result of Sightholders being given the opportunity during the seventh Sight of 2018 to re-phase the allocation of some smaller, lower value rough diamonds. Rough sales revenues were broadly in line with Q3 2017. Over all Full Year Guidance for production remains at 34-36 million carats but is expected to be at the higher end of the range.
