(Alliance News) - Anglo American PLC on Wednesday reported a sharp rise in rough diamond sales due to strong consumer demand for diamond jewellery in the US.
But the miner warned of the likely hit from the closure of many diamond polishing factories in India in the coming sales cycle.
Rough diamond sales value for the provisional fourth sales cycle rose by 57% to USD604 million from USD385 million in the same cycle last year.
Sales in the fourth cycle increased by 7.0% from USD566 million in the third cycle.
The provisional rough diamond sales figure for cycle four represents the expected sales value from May 2 to May 17. Actual third cycle sales value represents sales between March 8 and April 12.
De Beers Group Chief Executive Bruce Cleaver said good demand for rough diamonds continued in the fourth sales cycle, supported by strong consumer demand for diamond jewellery in the US.
However, rough diamond demand in the coming cycle will be affected as usual by the closure of many diamond polishing factories in India for the traditional May holidays, Cleaver warned.
Diamond businesses, he said, continue to closely monitor the effects of Covid-19-related lockdowns in China and the war in Ukraine and associated sanctions.
Owing to the restrictions on the movement of people and products in various jurisdictions around the globe, De Beers has continued to implement a more flexible approach to rough diamond sales during the fourth sales cycle, with the sight event extended beyond its normal week-long duration, it said.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Anglo American (AAL)
