In an announcement to its clients, De Beers has announced it is rescheduling sights to alleviate market pressure caused by decreased demand and a supply glut. Sights 7 and 8 will be combined at the end of September and Sight 9 and 10 dates are amended to accommodate timing issues in Botswana, to November 4-8 and December 2-6.
De Beers 4th sight cycle revenues totaled US$380m, a 21% drop from US$479m achieved in the 4th cycle of 2023 and -15% from sight n°3 this year, translating in a 17% decrease in revenues from sales (US$ 1.63bn this year vs US$1.97bn in 2023) year-to-date. The lower sales figures correspond with current market sentiment and add to the turbulence surrounding a potential sale of the diamond entity of Anglo American.
Photo credit: Anglo American Plc
De Beers Group yesterday announced the value of rough diamond sales for the second sales cycle of 2023. The mining giant sold $495 million in rough stones. There was a noticeable year-over-year drop in sales when compared with 2022- Cycle 2, where the company sold over $652 million, a 24% fall. Sales were 9% higher than $454 million registered for the preceding first Sight of 2023.
De Beers announced their first sight of the year raised $660 million, a strong increase compared to its revenue at the last December sight, which raised $336 million.
According to Bruce Cleaver, CEO De Beers, buyers are restocking: “As anticipated, there was strong growth in consumer demand for diamond jewelry over the end of year holiday season. As a result, we saw the continuation of robust rough diamond demand in the first sales Cycle of the year as buyers focus on restocking depleted inventories.”
Cycle 2 takes place from 14 – 16 February 2022.
In an in-depth analysis, Rapaport's Avi Krawitz maps who is buying rough from the four main diamond producers, De Beers, Alrosa, Rio Tinto and Dominion Diamonds, combined accounting for an estimated 60% of global rough supply.