Diamonds contribute 4% to Anglo's underlining EBITDA in 2020

Anglo American says its diamond unit, De Beers contributed $417million or 4% to its underlining earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2020.
The diversified mining group said in its sustainability report for 2020 that De Beers’ underlying EBITDA decreased by 25% in 2020 from $558 million in 2019, owing to the impact of the lower sales volumes and the lower rough price index reducing margins in both the mining and trading business, particularly in the first half of the year. 
It said despite the reduction in production volumes, unit costs decreased by 10% to $57 per carat compared to $63 per carat, a year earlier owing to cost-saving measures and favourable exchange rates that have resulted in a higher mining margin of 54% against 43% in 2019.
De Beers produced 25.1 million carats last year, 18% down compared to 30.8 million carats in 2019.
Diamond demand from the midstream (cutters and polishers of rough diamonds) was affected throughout the year by COVID-19 lockdowns, travel restrictions and retail store closures.
De Beers is expecting to produce between 32 and 34 million carats this year, subject to trading conditions, the extent of further COVID-19-related disruptions and ongoing operational challenges.
The higher production is driven by an expected increase in ore and improved grade performance at both Jwaneng and Venetia, in Botswana and South Africa, respectively.

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