Giant miner De Beers has issued its full-year report for 2017, reporting a fall in revenue of 4% to $5.8 billion. The fall, according to De Beers, was “expected, given the benefit of strong midstream restocking in the first half of 2016”. Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 2% to $1,435 million despite lower revenue.
The average realised rough diamond price decreased 13% to $162 per carat, “mainly owing to a lower value mix”. There was an 8% increase in consolidated sales volumes to 32.5 million carats, an increase reflecting “stronger demand for lower-value goods in Sight 1 of 2017 […]”. Rough diamond production increased by 22% to 33.5 million carats. Additionally, During 2017, De Beers invested more than $140 million in marketing (19% more than in 2016).
As for 2018 outlook, De Beers claims that “improving global macro-economic conditions remain supportive of consumer demand growth for polished diamonds in 2018”. For 2018, forecast diamond production is expected to be in the range of 34-36 million carats.
