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Home » News » Business » De Beers tallies $572 million in 6th sales cycle

De Beers tallies $572 million in 6th sales cycle

Publishing Date : 07 August, 2017

Author : AUBREY LUTE

Anglo American’s De Beers, the world's No.1 diamond producer by value, this week reported a 5.7% rise in rough diamond sales during the sixth cycle of the year compared with the previous one, as earlier India’s Diwali festivities brought forward demand from Indian diamond polishers.


Speaking of the De Beers Group’s sixth sales cycle of 2017, Bruce Cleaver, CEO, De Beers Group, noted, “The sixth sales cycle of the year maintained the trend of consistently good demand for De Beers rough diamonds across the product range.” The provisional value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the said cycle amounted to $572 million. In the same period last year, the actual sales value stood at $528 million.


Bruce Cleaver added, “With Diwali being earlier than normal in 2017, we saw some demand from Indian diamantaires pulled forward from Sight 7. This was due to these customers needing to make rough diamond purchases in sufficient time to complete their polishing before the holiday begins.” The Cycle 6 2017 provisional sales value represents sales as at 31 July 2017. Also, the company restated sales value of its cycle 5 2017 to $541 million.

Diwali, or festival of lights, is India's biggest and most important holiday of the year, which is celebrated in the fall. The festivity is known for driving diamonds and gold sales up, especially at the beginning of the five-day celebration. “With Diwali being earlier than normal in 2017, we saw some demand from Indian diamantaires pulled forward from Sight 7,” De Beers chief executive Bruce Cleaver said in the statement. “This was due to these customers needing to make rough diamond purchases in sufficient time to complete their polishing before the holiday begins.”

Last week, chief financial officer Nimesh Patel said improved market conditions meant De Beers was once again open to buying new assets at the right price. The comments came after the Anglo American division reported a 3% increase in underlying earnings in the first half of the year.


The next auction sales business

Meanwhile De Beers Group this week announced that its Auction Sales business will run further polished diamond auction events in August, following the success of the initial events in late June. The diamond giant also said at the time it had lifted its 2017 marketing budget by 20% to around $140 million, including both its own advertising and a contribution to the industry body the Diamond Producers Association's campaign to boost sales.


Customer response to the initial auction events in June was positive, with the auction featuring diamonds polished directly from De Beers-mined rough diamonds seeing the majority of lots successfully sold. The third party exceptional polished diamond auction also saw pleasing results with several of the flagship diamond lots on offer selling through, including the lead lot of a 7.21 carat D Colour flawless pear-shape diamond.


Neil Ventura, Executive Vice-President, De Beers Auction Sales, said: “We’ve been really encouraged by the early reaction to auctions of our own polished diamonds and to our third party exceptional auction sales. The uptake of goods in the auction of De Beers’ dual-certified polished diamonds indicates that there is healthy demand for products with this additional layer of assurance, and the demand at the exceptionals auction highlights that our leading platform and rapidly growing global customer network offers an attractive alternative route to market when looking to source or sell some of the finest polished diamonds.”


The next auction event for polished diamonds manufactured directly from De Beers-mined rough diamonds, with all goods having dual certification from the International Institute of Diamond Grading & Research and the GIA, will take place on 10 August 2017. This event will see a greater volume of De Beers polished diamonds offered for sale than at the first event held in June. Meanwhile, the next third party exceptional diamond auction, featuring higher value polished diamonds that have been responsibly sourced from sellers evidencing the highest standards of integrity, will be held on 24 August 2017. Headlining the event is a 15 carat internally flawless Fancy Vivid Yellow rectangle brilliant, as well as a two carat Fancy Pinkish Purple cushion.

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