Anglo American PLC announced a significant increase in rough diamond sales by De Beers during the initial cycle of 2024, marking a notable rebound compared to the last cycle of 2023.
The surge was attributed in part to the resumption of diamond imports into India, contributing to a positive trend in the industry. However, despite this improvement, the sales figures still registered a substantial decline on an annual basis.
The London-based diversified mining company revealed that the provisional rough diamond sales value for the first cycle of 2024 amounted to USD 370 million, reflecting a 19% decrease from USD 454 million in the corresponding cycle of the previous year. Nonetheless, when compared to cycle ten of 2023, sales witnessed a remarkable multiplication from USD 137 million.
De Beers' Chief Executive Officer, Al Cook, emphasized the "solid" consumer demand for diamonds in the United States during the year-end holiday season, contributing significantly to stabilizing the industry. Cook noted a positive trend in polished diamond prices, driven by robust consumer interest. The restart of rough diamond imports into India further fueled a substantial increase in demand for rough diamonds during the initial sales cycle of 2024.
Despite these positive indicators, Cook cautioned about the uncertainty surrounding economic growth in major economies, anticipating that it might take some time for rough diamond demand to fully recover. Anglo American, owning 85% of the diamond miner and dealer De Beers, expressed optimism amid ongoing challenges.
Following the announcement, Anglo American shares experienced a slight increase to ZAR 452.09 in early dealings on the Johannesburg Stock Exchange, showing a 0.2% rise to 1,896.00 pence in London. Photo by Jerry Cone, Wikimedia commons.
