De Beers Sales Jump 10% in April

RAPAPORT... De Beers recorded its largest rough-diamond sale sincemid-2018 as demand was steady following a slow first quarter. Sales rose 10% year on year to $575 million in the thirdsales cycle of the year, including last week's sight in Botswana. That figurewas 16% higher than the $496 million it sold in the previous cycle, De Beerssaid Tuesday. "As we move into the second quarter of the year, we saw acontinuation of stable demand for our rough diamonds during the third cycle of2019," De Beers CEO Bruce Cleaver said. Revenues were down 11% to $1.57 billion year on year forthe first three sales cycles, with disappointing holiday retail sales andweakness in the Indian manufacturing market resulting in lower-than-usualdemand at the first two sights. The first quarter is usually one of the busiestperiods of the year for the rough market, as dealers and cutters replenish goodsfollowing the holidays. Last week's April sight was the last of the current salesperiod, known as an intention to offer (ITO). De Beers will inform sightholdersof their rough-diamond allocations for the new ITO ahead of the next sight,which begins May 13. The miner expects to reduce its rough supply tosightholders during the new ITO, as production is set to fall this year. Image: De Beers' Jwaneng mine in Botswana. (De Beers)