(Sharecast News) - Anglo American has reported another increase in rough diamond sales at De Beers as prices continue to rebound after slumping in 2023, though the company warned that tough macro conditions will keep a lid on growth for a while.
De Beers saw sales of $430m in its second sales cycle of 2024, up from $374 in the first cycle and $137m in the last cycle of 2023, but down from $497m a year earlier.
"I'm pleased to see a further increase in demand for De Beers rough diamonds during the second sales cycle of 2024," said De Beers chief executive Al Cook.
De Beers, which operates diamond mines across Botswana, Canada, Namibia and South Africa, sells 90% of its stones by value through Sightholder sales. The sales events, known as Sights, are held 10 times a year. The other 10% of its diamonds are sold via auctions.
After a huge slide in sales in 2023, the company has noted encouraging signs of stabilisation in the market on the back of improving consumer demand in the US. Meanwhile, a temporary moratorium by major diamond producers to curb supply to the Indian market - in a bid to support prices - came to an end in December.
However, Cook said that ongoing "economic uncertainty" in the US had led to retailers restocking "conservatively" after the 2023 holiday season, while consumer demand remained "sluggish" in China.
"Overall, we expect that the ongoing recovery in rough diamond demand will be gradual as we move through the year," he said.
Anglo American (AAL)
