Analysts Say De Beers Sales Will Rebound

Rough Market
25/08/2020 11:05

According to Morgan Stanley analysts, in the 2nd half of 2020, De Beers' sales could rebound to US$1.6 billion, a recovery they believe will be driven by the holiday season, traditionally a strong sales period. The miner, for 85% owned by Anglo American, clocked an EBITDA of only US$2 million in the first half of the year, as De Beers' sales of rough diamonds dropped to nearly zero due to the global pandemic. For several months, the miner had implemented full flexibility to their sightholders to defer purchases in a price over volume strategy, but earlier this week, media reported that alongside cutting down on flexibility, De Beers also lowered prices on certain categories (+1ct).