Anglo American Q3 Diamond Production +4%, De Beers Sales +77%

Mining and Exploration
25/10/2016 13:52

Anglo American has published an update on its production performance for the third quarter of 2016, indicating that diamond production for the third quarter of 2016 increased by four percent to 6.3 million carats compared with the third quarter of 2015, when production was reduced to 6.0 million carats in response to weaker trading conditions. Production was bolstered in particular by its Debswana operations in Botswana where output increased 12% to 4.5 million carats, with production at Jwaneng Mine up 47%, partly offset by a planned 22% decrease at Orapa Mine. De Beers Consolidated Mines in South Africa also performed well, as production increased by 6% to 1.1 million carats, largely as a result of processing higher grades at Venetia Mine and increased throughput at Voorspoed Mine. Namdeb Holdings in Namibia saw output decrease by 13% to 405,000 carats, while De Beers Canada decreased production by 48% to 225,000 carats due to Snap Lake Mine being placed on care and maintenance in December 2015. The company's full year production guidance remains unchanged at 26-28 million carats, subject to trading conditions.

Meanwhile, De Beers total rough diamond sales grew 77% by volume in the third quarter, reflecting improved trading conditions compared to a year ago when higher pipeline stock impacted midstream demand. The miner said it sold 5.3 million carats in the three months that ended September 30, versus 3 million carats in the same period a year ago. In the last two sales cycles, De Beers sold $639 million (Cycle 7) and $485 million (Cycle 8, provisional).