Rough diamond production decreased by 5% to 7.6 million carats, due to the planned reduction in South Africa while the Venetia open pit transitions to underground operations, which offset strong performance driven by the planned treatment of higher grade ore at the remaining assets.
In Botswana, production increased by 6% to 5.8 million carats, driven by the planned treatment of higher grade ore at Orapa. This was partly offset by lower throughput at Jwaneng due to planned maintenance.
Namibia production increased by 8% to 0.6 million carats, primarily driven by the ongoing ramp-up and expansion of the mining area at the land operations.
South Africa production decreased by 62% to 0.5 million carats, due to the planned end of Venetia’s open pit operations in December 2022. Venetia continues to process lower grade surface stockpiles, which will result in temporary lower production levels as it transitions to underground operations.
Production in Canada increased by 6% to 0.7 million carats, driven by the treatment of higher grade ore despite planned plant maintenance.
Demand for rough diamonds was impacted by the ongoing macro-economic headwinds, with high levels of polished diamond inventory in the midstream. Rough diamond sales totalled 7.6 million carats (6.4 million carats on a consolidated basis) from two Sights, compared with 9.4 million carats (8.3 million carats on a consolidated basis) from three Sights in Q2 2022, and 9.7 million carats (8.9 million carats on a consolidated basis) from three Sights in Q1 2023.
The H1 2023 consolidated average realised price decreased by 23% to $163/ct (H1 2022: $213/ct), primarily due to selling a larger proportion of lower value rough diamonds, as Sightholders took a more cautious approach to planning their 2023 allocation schedule due to the uncertain macro-economic outlook. The average rough price index decreased by 2%, reflecting the overall softening in consumer demand for diamond jewellery and a build-up of inventory in the midstream.
Production guidance for 2023 is unchanged at 30–33 million carats (100% basis), subject to trading conditions.
Unit cost guidance for 2023 is revised to c.$75/carat (previously c.$80/carat), reflecting the weaker South African rand.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
