De Beers reported $347 million in first-half earnings before interest, taxes, depreciation, and amortisation (EBITDA) compared to $944 million a year earlier, with the diamond company's 50% mining margin being the highest within the Anglo American stable.
Anglo American chief executive Duncan Wanblad praised De Beers' operational performance, stating that macro-economic conditions impacted rough diamond demand.
"Operational performance at De Beers has been really good," he was quoted by Mining Weekly as saying during the group’s half-year results presentation.
"The macro-economic conditions have indeed impacted rough diamond demand, as they always do, and we are likely, given what’s happening in China, to remain challenged during the second half of this year."
He added: "The consequent result of that is that there will be a little bit of buildup in midstream inventory levels."
De Beers produced 16.5 million carats in the half-year compared to the previous year’s 16.9 million carats, with South Africa's Venetia transitioning from open pit to underground.
Meanwhile, De Beers chief financial officer Sarah Kuijlaar confirmed that a pilot died at the end of June after a small aircraft prospecting for diamonds crashed in Angola’s Minas Gerais region.
"It's a terrible incident for the whole De Beers family." "We're working with the Angolan authorities to really distill our learnings," she said.
De Beers signed mining investment contracts last year with the Angolan government for license areas in Lunda Norte and Lunda Sul.
The diamond group holds an initial 90% stake, while Endiama holds 10% with the potential to increase to 20%.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
