De Beers seeks to narrow gap between revenue, costs – report

Diamond giant, De Beers has come up with ways it can narrow the gap between its revenue and costs, according to a news report. 
Group chief executive Bruce Cleaver was quoted by Bloomberg as saying that these will vary from selling rough diamonds quickly and in a more integrated way to reconsidering how diamonds are recovered.
He said in a letter to the staff, seen by the business news agency, that Covid-19 had compounded and exacerbated difficulties that already existed in the diamond world.
“These difficulties, which have inhibited our growth over the past several years, have become even more urgent to address,” he said.
“They require us to act now to protect the short-term health of the business while refocusing and reorienting it to realize our long-term potential.”
Although Cleaver said the details of the changes are still being worked out, the process will likely involve job cuts, according to unnamed sources cited by Bloomberg.
“We are now working through a process to start to shape an organization that is better equipped and empowered to deliver this change,” said Cleaver.
“It won’t be easy for any of us. We will, very likely, come out of this a more focused and more connected business.”
De Beers’ second quarter rough diamond production eased by 54% to 3.5 million carats compared to 7,7 million carats, a year earlier due to the Covid-19 lockdowns in southern Africa.
The group’s rough diamond sales also totaled 300 000 carats in the second quarter compared with 9 million carats, the previous year.
Rough diamond consolidated sales in the second quarter also eased to $56 million compared with $1.3 billion in the comparative period last year, driven by lower volumes and prices.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished