De Beers revenue up 11% in full year results

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Anglo American, the UK-based mining organisation that owns the De Beers Group of Companies, has revealed its full year 2014 results, highlighting a 36% increase in De Beers’ operating profits to $1.4bn (£909.6m).

The De Beers Group of Companies enjoyed growing demand in 2014, with its revenue growing 11% overall. Additionally, diamond production rose 5% to 32.6m carats, due largely to stronger performance from its mining interests in Debswana, Botswana.

The company’s Forevermark diamond brand also performed well in 2014, and it is now available in 1,500 retail stores across 34 markets, including 400 in the US. This represents a 20% increase on 2013.

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In the coming years, the De Beers Group of Companies will invest around $3bn (£1.9bn) to develop one new mine and extend two of its current mines. Together they are the largest diamond production projects in the world.

Forecasts expect production to be in the range of 32 to 34m carats in 2015, subject to market demand. Forevermark is expected to continue on its successful trajectory, while the company looks into new Sightholder contracts and focuses on the rigorous financial and governance compliance issues that will impact them.

Anglo American chief executive Mark Cutifani explained: “The performance of our diamond business, De Beers, is a clear demonstration of the benefits and value of our diversified business model.

“The integration of De Beers into Anglo American is complete; De Beers contributed $1.4 billion of underlying EBIT in 2014, 28% of – and the second largest contributor to – the
Group’s total, and delivered a 15% return on capital employed (ROCE).”

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