De Beers sells $505m rough diamonds in first sales cycle

Diamond producer De Beers on Tuesday reported that rough diamond sales in this year’s first sale cycle had reached $505-million.

This is $167-million less than the $672-million earned in the first sales cycle of 2018. Sales in the previous cycle – cycle ten of 2018 – reached $544-million.

“Rough diamond sales during the first sales cycle of 2019 were lower than those for the equivalent period last year, reflecting higher than normal sales in the previous cycle and the slow movement of lower-value rough diamonds through the pipeline,” De Beers CEO Bruce Cleaver commented.

Bloomberg on Tuesday reported that diamond miners are struggling across the board, especially those producing cheaper and smaller gems where there is too much supply. Traders and manufacturers that buy them are also struggling to make a profit. Last month, some of Rio Tinto Group’s customers refused to buy cheaper diamonds, while De Beers has been forced to cut prices and offer concessions to buyers.

Source: miningweekly