The Israeli Diamond Industry Portal
Diamond News Center
Diamond News
Israel
World
Mining
Retail
Press Releases
IDI takes China by storm
2008 - Turning to India
Liberian Memorandum of Understanding
Rough Conference
Financial News
Today's Headlines
Newsletter
Features
Become a Member
Sign up and enjoy the benefits
Get Our Newsletter
IDEX Online Prices
Kimberley Process
IDEX Online Index
Currency Rates | Conversion Calculator
Update Date : 27.08.10
Currency Rate %
US Dollar 3.829 0.367
Euro 4.872 0.462
GBP 5.936 0.125
100 JPY 4.524 0.319
CNY 0.562 0.166
HKD 0.491 0.188
World Clock
Hong Kong  02:53
New York  14:53
Mumbai  00:23
Jerusalem  21:53
Brussels  20:53
Moscow  22:53
Diamond Needs | Supply | Israeli Diamond Blog | Diamond Companies | About Israel
diamond trade diamonds diamond companies diamond manufacture diamond center buying diamonds
Diamond News Center > Diamond News > Mining

Diamond News

De Beers sales flat, earnings fall

30.07.06 / Mining

De Beers on Friday reported a marginal rise in first half year sales, as a result of difficult trading conditions in the rough diamond market. Sales rose 1% to $3.25 million for the period ended June 30, 2006, from $3.22 million in the first six months of last year.

 

In a statement, De Beers’ Diamond Trading Company (DTC) said that while demand for diamond jewellery in the consumer markets has remained robust, with estimated growth of 3 - 4% on the record levels of 2005, the rough market was facing more difficult trading conditions.

 

De Beers said the modest increase in sales were the results from the impact on rough diamond demand, higher interest rates, higher gold and platinum prices in retail jewellery, reduced margins across the distribution pipeline, as well as “the increasing need to manage polished inventory levels.”

 

Net earnings, before a US class action payment and the surplus on sale of a 26% interest in De Beers Consolidated Mines (DBCM) as part of a Black Economic Empowerment transaction in South Africa, fell 1% to $336 million, reflecting tighter margins and increased exploration spending. Underlying earnings were down 14% at $308 million.

 

The figures were well below analysts expectations. "The results were worse than expected. Analysts will have to pull back their estimates for the full year by 5 - 7%," said Des Kilalea, senior analyst at Nedcor Securities in South Africa.De Beers is owned 45% by public-listed Anglo American.

 

On the exploration side, De Beers said costs have increased at its Snap Lake and Victor projects in Canada. This was mainly due to higher energy and material costs, technological and construction challenges and the impact of the early closure of the winter road.

 

Total expenditure to bring these two projects into production on schedule in the fourth quarter of 2007 is CA$2 billion

 

De Beers significantly increased exploration in the first half of 2006, investing (US)$25 million more than in the same period last year. The projects include the technology used on a Zeppelin in Botswana, and projects in Angola and the Democratic Republic of Congo (DRC).

 

Sales for 2006 at De Beers LV, the joint venture with LVMH, were “well up” on 2005 in total and on a like-for-like basis, De Beers said. It gave no profit figure.

 

For the second half, De Beers said it expected conditions in the rough diamond market to remain “challenging”, and constrain growth in second half DTC sales.

 

However it said, consumer demand growth in the medium term would translate into increased demand for rough diamonds.

 

In terms of production, despite the closure of a number of South African mines, it said it expected full year production to be up in the low single digits in carats.

 

By: PolishedPrices
More on this subject:
De Beers Namibian talks near end (01/08/06)
De Beers pays another $45 million to settle legal claims (17/07/06)
De Beers to restart diamond exploration in Guinea (04/07/06)
| | | | | | התראות RSS

 
Sign Up For Our Newsletter

more news   |  more mining news
News Rss Feeds
FINANCIAL NEWS
Fischer: Peace Will Boost Economy 5-6%
02.09.10
TODAY'S HEADLINES
Germany's Central Bank Votes to Oust Sarrazin for "Jew" Comments
02.09.10
NOTICES
WFDB Mourns Former Israel Diamond Exchange President Yitzchak Forem
02.09.10
WORLD
Diamond Ring Worth $320,000 Stolen from Beijing Tiffany Store
02.09.10
WORLD
Sarin Launches Enhanced Diamond Processer
02.09.10
Financial News
Fischer: Peace Will Boost Economy 5-6%
02.09.10, 13:02
Common Searches
diamond price
buying diamonds
Israel diamond exchange
Diamond Needs
Round,1.00 - 4.00
(25.10.09)
Round,5.00+
(25.10.09)
This week's most popular news
Zimbabwe Gets $30M dividends from Diamond Companies
TASE Closes in the Red, Leviathan Partners Up
Mass Oil Cache Beneath Gas in Leviathan Project
IDI – מכון היהלומים הישראלי ewave