Diamond sales lose shine at De Beers

23rd May 2024 10:39

(Sharecast News) - Rough diamond sales at De Beers fell in recent weeks, Anglo American said on Thursday, on the back of subdued demand.

Updating on trading at its diamond business, the UK-listed miner said the provisional value of rough diamond sales in the fourth sales cycle of 2024 was $380m.

That compares to $446m in the third cycle, and $479m in the fourth cycle of 2023.

De Beers divides each year into a series of 10 sales cycles of around five weeks each.

Al Cook, De Beers chief executive, said: "As expected, rough diamond sales trended lower in line with the seasonally slower second quarter and a quieter period of trading in India during the elections.

"The focus of the global diamond industry now turns towards the JCK jewellery show in Las Vegas at the end of May. Demand trends in the US are expected to be driven by short-term macroeconomic issues, but supported in coming years by a recovery in engagements as the after-effects of pandemic lockdowns fade."

As at 1015 BST, shares in Anglo were largely flat at 2,696p.

On Wednesday the miner rejected the latest improved £27.43 per share indicative offer from Australian rival BHP Group.

It said the latest offer, which values Anglo at £34bn, did not address concerns about its "highly complex structure", but added that it would continue to engage with BHP.

The Takeover Panel's "put up or shut up" deadline, by which BHP must make a formal offer or walk away, has therefore been extended by a week.