News from our businesses and markets

Rough diamond production increased by 12 per cent to 9.1 million carats bringing total production for 2018 to 35.3 million carats due to a planned production increase at Orapa² mine, although this was in the lower half of the production guidance range of 35 to 36 million carats.

Botswana (Debswana) production increased by 15 per cent to 6.3 million carats. Orapa² production increased by 20 per cent to 3.6 million carats driven by planned favourable grade and higher plant utilisation. Jwaneng production increased by nine per cent following an increase in tonnes treated.

Namibia (Namdeb Holdings) production increased by three per cent to 0.5 million carats, driven by the Mafuta crawler vessel at Debmarine Namibia spending fewer days in port. This was partly offset by the land operations following the transition of Elizabeth Bay to care and maintenance.

South Africa (DBCM) production increased by seven per cent to 1.2 million carats as a result of planned higher grade ore at Venetia.

Canada production increased by five per cent to 1.0 million carats due to higher grades at Victor as it reaches the end of its life. This was partially offset by planned lower grades at Gahcho Kué.

Rough diamond sales volumes totalled 9.9 million carats (9.3 million carats on a consolidated basis³) from three sales cycles, compared with 8.2 million carats (7.5 million carats on a consolidated basis³) from the same number of sales cycles during the equivalent period in 2017. Fourth quarter rough sales revenues increased year on year as the re-phased allocations of some lower value rough diamonds from Sight 7 (in September) were realised in Sights 9 and 10.

For the full year, rough diamond sales volumes were four per cent lower at 33.7 million carats (31.7 million carats on a consolidated basis³) compared with 35.1 million carats (33.1 million carats on a consolidated basis³) in 2017. 2018 sales volumes were also lower than production, driven by lower demand for lower value rough diamonds in the second half of 2018.

The consolidated average realised price of US$171/ct was six per cent higher (2017: US$162/ct), due to a lower proportion of lower value rough diamonds sold in 2018.

2019 Guidance

2019 production guidance is 31 to 33 million carats, subject to trading conditions. The lower production is driven by the process of exiting from the Venetia open pit with the underground becoming the principal source of ore from 2023. Associated with this, an increased proportion of production in 2019 is expected to come from De Beers Group’s joint venture partners, a proportion of which generates a trading margin, which is lower than the mining margin generated from own mined production.

^{1 De Beers Group production is on a 100 per cent basis, except for the Gahcho Kué joint venture which is on an attributable 51 per cent basis.
2 Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
3 Consolidated sales volumes exclude De Beers Group’s JV partners’ 50 per cent proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100 per cent basis). 2017 includes pre-commercial production sales volumes from Gahcho Kué.}