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Botswana: De Beers Buoyant On Growth

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Blue chip diamond company De Beers Group is buoyant that its business will bounce back this year as compared to 2020 due to the promising demand in diamonds since the start of the year.

De Beers Executive Vice President Diamond Trading, Paul Rowley, while presenting the Group’s 2020 financial results, said the Group revenue stood at $3.4 billion in 2020 as compared to the $4.6 billion posted in 2019, representing 30% decline. But he is buoyant of growth amid 2021 outlook.

“2020 was unprecedented year for the diamond industry globally and we also suffered from the effects of Covid-19. Containment measures such as the lockdowns impacted negatively on our business operations. There have been significant challenges for the rough diamond industry,” he said.

The buoyant De Beers Group executive said there has been high demand for diamonds in 2021 and therefore recovery is imminent. But he cautioned that the business has to be vigilant too.

Rowley added that the company’s target in 2021 is to produce between 32 and 35 million carats.

According to him, the production target is informed by the promising signals of recovery in the diamonds sales as most of De Beers’ top markets are showing resilient economic recoveries.

Anglo American, the parent company of De Beers, recently revealed that the rough diamond output at De Beers Group declined by 14% on its production report of fourth quarter (Q4) of year 2020.

The company said the decline was driven by continued planned reductions in response to the lower demand for rough diamonds caused by Covid-19 and operational challenges at the Orapa mine.