Continued stability in polished diamond prices!
Recently Mark Cutifani, Chief Executive of Anglo American plc, said, at our diamond business, De Beers, you may have seen that the first three sales cycles of the year (comprising our ‘Sight’ sales and our auction sales) have shown considerable improvement when compared with the end of 2015. Continued stability in polished diamond prices and sales of polished diamonds at the wholesale level has supported a reasonably positive environment for rough diamond demand for three consecutive sales cycles.
The sales value of those first three Sights has totalled more than $1.8 billion. That said we are now entering a period of the year when demand for rough diamonds has historically been lower due to seasonal factors, so we remain prudent in our approach. There were clear signs in 2015 performance that the fundamental improvements to the business are coming through, it were also clear that the transformation process needed to be faster and more radical in order to be fit for purpose in this commodity price environment.
In the core portfolio, we have a very unique investment proposition with great assets with mid- to late cycle – being a more consumer demand focused – bias. First, the sheer quality of our assets in diamonds, platinum and copper provides the foundation for our core portfolio of commodities. Our leadership position in diamonds through De Beers, in platinum in southern Africa and our copper assets in South America provide a world-class core of resources and assets that are positioned to deliver robust cash flow and returns through price cycles.