De Beers announces a 30% revenue increase

De Beers, the world leading diamond company, has reported a significant increase in total revenue by 30% to 6.1 billion rand, driven by a substantial rise in rough diamond sales which surged by 37%. Gareth Mosten, De Beers' Group Head of Strategy and Board Member, highlighted the positive results achieved by the company amidst what he described as a challenging environment for commodity prices and slowing demand. Mosten attributed the impressive financial and operating results to improved trading conditions in the diamond industry in 2016. He emphasized the decisive actions taken by De Beers in the face of difficulties in the market, which were then managed with discipline throughout the year, setting the stage for a more favorable trading environment. The company's revenue reached 6.1 billion dollars, accompanied by enhanced profitability reflected in EBITDA figures of 1.4 billion dollars. One key factor contributing to De Beers' success was its significant investment in marketing activities targeted at the main diamond jewelry markets globally. Mosten mentioned that a substantial amount, approximately 120 million dollars, was allocated to marketing efforts in key regions such as America and China. Additionally, the company continued to make substantial investments in its mining operations worldwide, with a major focus on the expansion of the Venetia mine in South Africa through a 10-year, $2 billion project, alongside investments in operations in Botswana, Namibia, and Canada. Looking ahead, Mosten discussed the expectations for diamond prices in the coming year. Despite rough diamond prices averaging slightly below $200 per carat in the previous year, De Beers remains cautiously optimistic for 2017. The company anticipates continued growth in the American market, which is the largest market for diamond jewelry. Furthermore, there is confidence in the increasing spending by Chinese consumers in their home country. The long-term outlook is positive, with the potential for higher demand from the emerging middle classes in China and India. In conclusion, De Beers is optimistic about the prospects for the diamond industry in 2017 and beyond, projecting sustained growth driven by key markets and emerging consumer segments. The company's strategic investments in marketing and mining activities have positioned it well to capitalize on future opportunities and navigate challenges in the dynamic global market.