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Production Report for the Second Quarter of 2021

20 Jul 2021

De Beers(1 )(000 carats)

Q2 2021

Q2 2020

Q2 2021
vs.
Q2 2020

Q1 2021

Q2 2021
vs.
Q1 2021

H1 2021

H1 2020

H1 2021
vs.
H1 2020

Botswana

5,727

1,825

214%

4,960

15%

10,687

7,469

43%

Namibia

338

358

(6)%

338

0%

676

869

(22)%

South Africa

1,276

555

130%

1,161

10%

2,437

1,306

87%

Canada

899

789

14%

710

27%

1,609

1,633

(1)%

Total carats recovered

8,240

3,527

134%

7,169

15%

15,409

11,277

37%

Rough diamond production increased by 134% to 8.2 million carats, reflecting planned higher production to meet stronger demand for rough diamonds, as well as the impact of Covid-19 lockdowns across southern Africa in Q2 2020.

In Botswana, production increased by 214% to 5.7 million carats, reflecting the impact of the Covid-19 lockdown in Q2 2020.

Namibia production decreased by 6% to 0.3 million carats, primarily due to planned maintenance of the Mafuta vessel which completed in the quarter and another vessel remaining demobilised.

South Africa production increased by 130% to 1.3 million carats due to planned treatment of higher grade ore from the final cut of the Venetia open pit, as well as the impact of the Covid-19 lockdown in Q2 2020.

Production in Canada increased by 14% to 0.9 million carats, primarily reflecting the impact of the Covid-19 measures implemented in Q2 2020.

Consumer demand for polished diamonds continued to recover, leading to strong demand for rough diamonds from midstream cutting and polishing centres, despite the impact on capacity from the severe Covid-19 wave in India during April and May. Rough diamond sales totalled 7.3 million carats(2) (6.5 million carats on a consolidated basis)(2)(3) from two Sights, reflecting the impact of the reduced Indian midstream capacity on Sight 4, compared with 0.3 million carats (0.2 million carats on a consolidated basis)(3) from two Sights in Q2 2020, and 13.5 million carats (12.7 million carats on a consolidated basis)(3) from three Sights in Q1 2021.

The H1 2021 consolidated average realised price increased by 13% to $135/ct (H1 2020: $119/ct), driven by an increased proportion of higher value rough diamonds sold. While the average price index remained broadly flat, the closing index increased by 14% compared to the start of 2021, reflecting tightness in inventories across the diamond value chain as well as positive consumer demand for polished diamonds.

Full Year Guidance

Production guidance(1) is tightened to 32–33 million carats (100% basis) (previously 32-34 million carats (100% basis)), subject to trading conditions and the extent of any further Covid-19 related disruptions.

 

(1) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(2) Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight was extended beyond its normal week-long duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.
(3) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).