London: Anglo American yesterday (Thursday) announced that De Beers’ Q4 2019 production dropped by 15% to 7.8 million carats compared to Q4 2018 (9.1 million carats). The company said the lower figures were because of lower production levels in South Africa and Botswana.
For the full year, De Beers’ diamond production totaled 30.8 million carats, a drop of 13% compared to 2018 when production reached 35.3 million carats. The company said that while trading conditions have improved since the third quarter of the year, production was reduced in response to softer rough diamond demand conditions.
During the quarter, production in Botswana decreased 7% to 5.9 million carats. Production at Orapa dropped 29% because of a delay in an infrastructure project and expected lower grades. This was partially offset by a 21% increase at Jwaneng with planned increases in both tons treated and grade.
In Namibia, production decreased by 10% to 0.5 million carats, driven by Debmarine Namibia where production decreased by 9% to 0.4 million carats because of routine vessel maintenance.
Once again, South Africa saw the greatest drop with a 65% decrease in production to 0.4 million carats. This was because of lower volumes of ore mined at Venetia as it approaches the transition from open pit to underground. In addition, Voorspoed production ended in Q4 2018 when it was placed onto care and maintenance.
In Canada, production decreased by 3% to 1 million carats primarily due to the closure of the Victor mine, which reached the end of its life in Q2 2019. However, Gahcho Kué production increased by 28% to 1 million carats due to strong plant performance.
Rough diamond sales totalled 7 million carats (6.6 million carats on a consolidated basis) from two sales cycles, which compares with 9.9 million carats of sales (9.3 million carats on a consolidated basis) from three sales cycles in Q4 2018.
For the full year, rough diamond sales volumes fell 8% to 30.9 million carats (29.2 million carats on a consolidated basis) compared with 33.7 million carats (31.7 million carats on a consolidated basis) in 2018.
For the full year, the consolidated average realised price of $137/ct was lower (2018: $171/ct), due primarily to a higher proportion of lower value rough diamonds sold in 2019 and a 6% lower rough diamond index.
De Beers’ production guidance for 2020 remains at 32-34 million carats.
