De Beers Raises Output in Healthy Market

RAPAPORT... De Beers' production grew during the first quarter as the company reached full capacity at its Gahcho Ku?(C) mine in Canadaand increased output in Botswana in response to a strong market. The miner's global production jumped 15% year on year to 8.5million carats during the period ending March 31, parent company Anglo American reportedTuesday. Rough-diamond recovery in Canada soared 69% to 1.1 millioncarats, driven by the ramp-up of operations at Gahcho Ku?(C), which the miner ownsin partnership with Mountain Province Diamonds. The asset reached "nameplate" capacity- De Beers' intended full activity level - in the second quarter of 2017. Debswana, De Beers' joint venture with the Botswana government,saw production climb 12% to 5.8 million carats as healthy trading conditionsprompted the miner to increase its ore-treatment levels at the nation's Orapa, Letlhakaneand Damtshaa mines. That was partly due to the reintroduction of Damtshaa,which De Beers placed on care and maintenance during the market slowdown in2015. Output in Namibia grew 12% to 528,000 carats, whileproduction in South Africa slid 1% to 1.1 million carats. De Beers expects production for the year to reach between 34million and 36 million carats, compared to the 33.5 million carats it recoveredin 2017. Sales of rough stones dropped 38% by volume to 8.8 millioncarats during the quarter, De Beers said. In 2017, De Beers' first quarter comprised three sights. This year, only two sights took place in the same period, as the third was in April. Rough-diamond revenue fell 6% to$1.76 billion in the first three sights of 2018 compared with the equivalentsales last year, according to Rapaport calculations.Image: Debswana