DIAMOND NEWS ROUNDUP — De Beers reports record sales

Diamond mining giant De Beers Consolidated Mines reports that a “positive mood in the market” during the first half of 1996 resulted in record sales of US$2.75 billion and an 18% increase in earnings.

For the six months ended June 30, De Beers Consolidated Mines and De Beers Centenary reported attributable combined earnings of $US482 million ($US1.27 per linked unit), compared with $US407 million (US$1.07 per linked unit) for the same period last year.

Dividends increased by 5.5%, from 25.6 cents to 27 cents per linked unit while diamond stocks decreased by US$163 million to US$4.5 billion.

Prospecting and research spending was virtually unchanged at US$54 million.

Commenting on the banner first half, a De Beers spokesman said strong demand for larger diamonds allowed the company to increase prices.

On the down side, the recent Russian presidental election and its aftermath have stalled negotiations with that country over a renewed sales contract, and Argyle Diamonds failed to renew its marketing contract with De Beers ‘ Central Selling Organization.