The world’s largest diamond mining company, the De Beers Group, has recorded a revenue decline in its third sales cycle of the year.
De Beers reported sales of $USD445 million ($AUD691.6 million) in April, a decrease of 18 per cent on a year-by-year comparison. With that said, this marked a 3 per cent increase from the previous sale.
CEO Al Cook said that the results from the sale, which occurred in Botswana from 2-5 April, indicated that the market remains cautious.
“Many diamond businesses are continuing to take a cautious approach to purchases amidst the uncertain economic landscape and the slow pace of growth in China,” he said.
“However, we saw a further uptick in our rough-diamond sales in our third sales cycle, ahead of what is usually a slower period for rough-diamond demand in the second quarter of the year.”
Industry analyst Leah Meirovich of Rapaport News suggested despite the ‘sluggish’ sales, it was a notable improvement during a traditionally slower time of year for the industry.
“April is generally a quieter period for buying rough, following post-holiday restocking at the start of the year,” she said.
“However, the continued rise between sights shows a distinct trend toward recovery in the market after months of slow demand, oversupply in the midstream and hesitancy from retailers to purchase polished.”
The diamond miner’s next cycle is scheduled for 6-10 May.
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