Full year 2014 preliminary results published by De Beers’ majority shareholder, Anglo American, show a 36 per cent rise to US$1.4 billion (AU$1.8 b) in operating profit compared to 2013.
The figure was attributed to a healthy increase in revenue that resulted from “solid” diamond demand across the mining company’s key markets, particularly the US.
Total sales for the period increased 11 per cent to US$7.1 billion (AU$9.1 b), with a 12 per cent rise to US$6.5 billion (AU$8.3 b) in rough diamond sales.
De Beers was the second largest contributor – behind iron ore and manganese – to Anglo American’s overall operating profit, accounting for 28 per cent.
The financial report also noted that the number of retail stockists for the De Beers Forevermark jewellery range had risen 20 per cent. The range is currently available in more than 1,500 stores across 34 markets.
As previously reported by Jeweller, De Beers rough diamond production increased in 2014 by 5 per cent to 32.6 million carats. Diamond production in 2015 is expected to be in the range of 32 to 34 million carats, subject to market demand.
The De Beers new contract period for sightholders will begin in March 2015 and run for three years.
Anglo American holds an 85 per cent share in De Beers, with the remaining 15 per cent held by the government of the Republic of Botswana.
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