De Beers Releases Impressive Fourth Quarter Results

De Beers Group announced a diamond production increase by five per cent in their fourth quarter production results for 2017.
As quoted in the press release:

Rough diamond production increased by five per cent to 8.1 million carats reflecting stronger trading conditions as well as the contribution from the ramp-up of Gahcho Kué in Canada.
Debswana (Botswana) production increased marginally to 5.5 million carats. Orapa’s production increased by 14 per cent mainly driven by planned increases in plant performance, and the ramp-up of Plant 1, which was previously on partial care and maintenance in response to trading conditions in late 2015. This was partially offset by Jwaneng where production decreased by 15 per cent due to expected lower grades.
Namdeb Holdings (Namibia) production increased by 14 per cent to 0.5 million carats, mainly due to higher grades at Namdeb’s land operations.
DBCM (South Africa) production decreased by 17 per cent to 1.1 million carats largely as a result of planned sequencing of ore sources at Venetia, where the increase in tonnes treated was more than offset by a reduction in grade.
Canada production doubled to 1.0 million carats due to the ramp-up of Gahcho Kué, which reached nameplate capacity in Q2 2017.
Consolidated rough diamond sales volumes² in Q4 2017 were 7.5 million carats (Q4 2016: 7.5 million carats). Total sales volumes (100 per cent),² which are comparable to production, were 8.2 million carats in Q4 2017 (Q4 2016: 8.0 million carats).
For the full year, consolidated sales volumes² were 33.1 million carats (2016: 30.0 million carats). Total sales volumes (100 per cent),²which are comparable to production, were 35.1 million carats (2016: 32.0 million carats).
The full year consolidated average realised price³ of US$162/ct was 13 per cent lower than in 2016. This reflected strong demand in Sight 1 2017 for lower value goods held in stock at 31 December 2016, following a recovery from the initial impact of India’s demonetisation programme in late 2016, as well as the ramp-up of production from lower value per carat but high margin operations, including Orapa and Gahcho Kué. The lower value mix was partially offset by a higher average rough price index, up three per cent compared with 2016.

Click here to read the full De Beers Group press release.