De Beers reported a 15% increase in rough diamond production to 8.5 million carats in the first quarter of 2018, reflecting the ramp-up of production from Gahcho Kué in Canada and increased production from Orapa in Botswana in response to the sustained healthy trading conditions.
In Botswana, Debswana’s Q1 production increased 12% to 5.8 million carats. At Orapa, constituting the Orapa Regime, which includes Orapa, Letlhakane and Damtshaa, production increased 26% to 2.8 million carats mainly due to an increase in tonnes treated in response to sustained healthy trading conditions.
Namibia’s Namdeb Holdings saw production increase 12% to 0.5 million carats as a result of accessing consistently higher grades at the land-based operations.
In South Africa, DBCM’s production was in line with the first quarter of 2017 at 1.1 million carats.
De Beers’ Canadian production increased by 69% to 1.1 million carats due to the ramp-up of Gahcho Kué, which reached nameplate capacity in the second quarter of 2017.
Total rough diamond sales volumes in the first quarter of 2018 were 8.8 million carats (8.4 million carats on a consolidated basis) from two sights, compared with 14.1 million carats (13.7 million carats on a consolidated basis) from three sights in the first quarter of 2017. In addition to the difference in the number of sights over the period, sight 1 2017 also saw an unusually strong demand for lower value goods following the effects of Indian demonetisation in the fourth quarter of 2016, leading to higher than normal sales volume.
De Beers said its full-year production guidance remains unchanged at 34-36 million carats, subject to trading conditions.