De Beers Sheds $76M In Cycle 5

De Beers, the leading global diamond major said its sales were lower on its fifth sales cycle of 2016 held in Gaborone recently. The Anglo American diamond unit revealed that it sold $560 million worth of diamonds in Cycle—which was less than the actual $636 million recorded on Cycle 4 of the year. CEO of the group, Philippe Mellier said however that prices and demand remain stable.

Sight box (PIC By De Beers)

Sight box (PIC By De Beers)

“Sales in the fifth cycle of the year were somewhat lower than in the fourth cycle, in line with our expectations and typical seasonal demand patterns,” Mellier said. “Rough diamond demand and polished diamond prices remain stable, reflecting steady consumer demand, but we maintain a cautious outlook.”

The Cycle 5 2016 provisional sales value represents sales as at 27 June 2016 while the Cycle 4 2016 actual sales value is restated following the earlier publication of a provisional figure for the fourth sales cycle of 2016, De Beers stated.

Mellier is stepping down as De Beers CE after five years with the company and will hand over the button to Bruce Cleaver on July 1, 2016.

When announcing the appointment of Cleaver, Chief Executive of Anglo American and Chairman of De Beers, Mark Cutifani said the structural dynamics of the diamond market continue to improve, led by the strength of consumer demand for diamond jewellery.

“With the proven management team in place, De Beers is well positioned to maximise value for all its stakeholders across the diamond value chain,” Cutifani said.

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