De Beers Production and Sales Slide

RAPAPORT... De Beers' production fell 5% to 8.7 million carats in thethird quarter due to planned reductions in mining volumes in Botswana and SouthAfrica. The miner processed lower-grade ore at its Jwaneng mine inBotswana, resulting in overall output for Debswana - its joint venture with thenation's government - declining 6% to 5.7 million carats. It also carried out a scheduled shutdown of its Venetia minein South Africa to upgrade the processing plant ahead of the asset's transitionfrom open-pit to underground operations. Total production in South Africa slid14% to 1.3 million carats. Production in Canada grew 5% to 1.2 million carats amid highergrades at the Victor mine, which will close in 2019. Its share of production atGahcho Ku?(C), the miner's other asset in Canada - which it owns in partnershipwith Mountain Province - remained flat at 927,000 carats. Namibian outputincreased 1% to 460,000 carats. Rough-diamond sales fell 28% to 5 million carats as De Beersallowed sightholders to defer their allocations of some smaller, lower-value goodsduring its seventh cycle in light of weak market conditions. Revenues fromrough sales for the quarter were "broadly in line" with a year ago, the mineradded. Production increased 3% to 26.2 million carats in the firstnine months of the year, while sales slipped 11% to 23.9 million carats. Thecompany has maintained its 2018 production forecast of 34 million to 36 millioncarats, but expects the actual number to be in the higher end of that range. Image: De Beers' Orapa mine. (De Beers)