Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
In an interview with Moneyweb on Tuesday, De Beers Chief Commercial Officer said the company had experienced its best six months since it went private in a $19 billion deal with parent Anglo-American in 2001.
Bruce Cleaver said the stellar results that saw net income tripling had been driven not only by “enormously strong” consumer demand in China, Hong Kong, Macau, India and the Gulf states but “surprisingly” strong growth in America, where sales had been anaemic over the last few years.
Cleaver added that a feasibility study at Venetia, De Beers’s flagship mine in South Africa, shows the life of mine can be extended to 2030 if underground operations are undertaken.
Click here for the complete transcript and an audio version of the interview.
The BBC reported at the time of the delisting in May 2001 that South African investors were mourning the loss of a company that had been on the Johannesburg Stock Exchange since 1893.
Image is of the De Beers Diamond Jewellers store in Almaty, Kazakhstan, which opened its doors at the beginning of July.
