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De Beers profits rebound amid COVID recovery<br />
rough diamond demand as the midstream pulled<br />
through stocks in response to the recovery in<br />
consumer demand,” according to the report.<br />
“The closing price index was 14 per cent above the<br />
opening index over the first six months of <strong>2021</strong>,<br />
reflecting positive consumer demand for diamond<br />
jewellery as well as tightness in inventories across<br />
the diamond value chain,” it added.<br />
Following a challenging 2020, a robust recovery in the<br />
diamond market has put De Beers back on track.<br />
The latest financial reports from De Beers<br />
indicate the company – the world’s second-largest<br />
diamond producer by volume – has returned to<br />
the black.<br />
Revenue increased to $US2.9 billion in the first<br />
six months of <strong>2021</strong>, compared with $US1.22<br />
billion during the same period in 2020 due to the<br />
COVID-19 pandemic.<br />
Rough sales increased from 8.55 million carats<br />
to 19.1 million carats, while production also<br />
increased from 11.3 million carats to 15.4<br />
million carats; De Beers has indicated its annual<br />
production target for <strong>2021</strong> is 32–33 million carats.<br />
The promising results were “driven by robust<br />
Consumer demand has been largely driven by the<br />
recovery in the US market, which has benefited<br />
from relaxed restrictions in the wake of mass<br />
COVID-19 vaccinations.<br />
Globally, international travel restrictions have<br />
also led to increased consumer spending on<br />
luxury goods.<br />
Meanwhile, an outbreak in India in April and May<br />
led to shortages, which restricted supply and<br />
boosted polished prices.<br />
De Beers recorded provisional sales of $US510<br />
million for its sixth ‘Cycle’ of the year, up from<br />
$US477 million in the previous Cycle and $US116<br />
million for the same period in 2020.<br />
In February <strong>2021</strong>, the company reported an<br />
underlying loss of $US102 million for the 2020<br />
financial year.<br />
Sapphire 'cluster', potentially valued at<br />
$100 million, found in Sri Lanka<br />
a well on a property in Ratnapura – a region<br />
known for its gemstones – more than a year ago,<br />
and took months to fully clean and analyse.<br />
Coveted by collectors, star sapphires display<br />
the optical phenomenon known as asterism, in<br />
which their inclusions reflect light in a specific<br />
way that creates a star-like shape with four, six,<br />
or 12 'points'. The number of points influences<br />
the value of the gemstone.<br />
The Serendipity Sapphire was unearthed in Ratnapura<br />
last year while workmen dug a well. Image: BBC<br />
The world's largest star sapphire 'cluster' has been<br />
found in the backyard of a Sri Lankan gemstone<br />
trader, according to multiple media reports.<br />
The specimen reportedly weighs 510kg – 2.5<br />
million carats – with an estimated value of up to<br />
$US100 million ($AU136 million), and has been<br />
named the 'Serendipity Sapphire'.<br />
It was unearthed by workmen who were digging<br />
Speaking to the BBC, gemmologist Dr Gamini<br />
Zoysa said, "I have never seen such a large<br />
specimen before. This was probably formed<br />
around 400 million years ago."<br />
While the specimen has not been independently<br />
authenticated by international experts, Thilak<br />
Weerasinghe, the Chairman of the National Gem<br />
and <strong>Jeweller</strong>y Authority of Sri Lanka, said, "It<br />
is a special star sapphire specimen, probably<br />
the biggest in the world. Given the size and its<br />
value, we think it will interest private collectors<br />
or museums."
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