De Beers rakes in P30 billion in first half of 2021

For the first 6 months of 2021, De Beers revenue clocked $2.9 billion ( approximately P30 billion) rising from the 2020 first half figure of $1.2 billion ( around P13 billion).

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The company‘s half year result released on Thursday shows that rough diamond sales rose to $2.6 billion from $1.0 billion in half year 2020, this was driven by robust rough diamond demand as the midstream pulled through stocks in response to the recovery in consumer demand, with rough diamond sales volumes significantly higher at 19.2 million carats from 8.5 million carats in the first six (6) months of 2020.

 The average realised price rose by 13% to $135/ct (30 June 2020: $119/ct), driven by a larger proportion of higher value rough diamonds.

The closing price index was 14% above the opening index over the first six months of 2021, reflecting positive consumer demand for diamond jewellery as well as tightness in inventories across the diamond value chain.

Underlying EBITDA increased to $610 million from $2 million, broadly returning to 2019 levels, owing to the recovery in sales.

Unit costs were lower than in the first half of 2020 at $59/ct (30 June 2020: $62/ct), as the benefit of higher production was primarily offset by unfavourable exchange rates.

Capital expenditure increased by 29% to $205 million (30 June 2020: $159 million), largely due to a reduction of sustaining projects during 2020 in response to Covid-

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