De Beers’ underlying EBITDA increased to $1,1 billion in 2021 compared to $417 million in 2020, reflecting the improvement in sales driven by the recovery in demand, according to Anglo American.
Its revenue also rose significantly to $5.6 billion last year from $3.4 billion in 2020, with rough diamond sales rising to $4.9 billion compared to $2.8 billion, a year earlier driven by positive sentiment and strong demand for diamond jewellery in key consumer markets.
“With midstream capacity recovering, despite the second wave of Covid-19 infections in India in the second quarter of 2021, on a consolidated basis, rough diamond sales volumes were significantly higher at 33.4 million carats [from 21.4 million carats in 2020],” it said.
The average realised price rose by 10% to $146 per carat compared to $133 per carat in 2020, mainly due to a positive market sentiment which gave rise to an 11% strengthening of the average rough price index.
Anglo also said that De Beers’ unit costs were broadly flat at $58 per carat as the benefit of higher production volumes was offset by an increase in input costs and unfavourable exchange rates.
The diamond miner’s capital expenditure jumped 48% to $565 million compared to $381 million in 2020, as spending returned to more normalised levels following the deferral of sustaining projects in response to the COVID-19 pandemic.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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