A first (rough) look into 2017 diamond production

World diamond production

After almost a decade of production stagnation around 130 Mct, Kimberley Process 2017 diamond annual production data show a marked production jump for diamonds. Production of rough diamonds rose from 134 Mct and US$12,4 bn (2016) to 151 Mct and US$15,9 bn (2017), an apparent return to pre-2008 levels (not there yet, but getting closer) – data from the Kimberley Process (KP).

South African production explains most of the jump in value recorded in KP data. It more than doubles previous year’s South African production value and it is a record value. Most probably I am missing something: can this be, or is the published data wrong? again, drop me a line to comment on this.

The sharp (12,5%) increase in rough diamond volume production is due to:

  • +  3,1 Mct in Australia;
  • +  2,5 Mct in Botswana;
  • + 10,2 Mct in Canada;
  • –   4,3 Mct in DRC;
  • +  0,8 Mct in Lesotho;
  • +  2,3 Mct in Russia and
  • +  1,4 Mct in South Africa.

The even sharper (28%!) value increase was due to:

  • +   483 M USD in Botswana;
  • +   663 M USD in Canada;
  • –     89 M USD in DRC;
  • +   533 M USD in Russia and
  • + 1 840 M USD in South Africa.

World diamond value

 

Portugal: (Energia e ) Recursos Minerais – I

Produção mineral nacional valor
Evolução do valor da produção mineral nacional (incluindo águas minerais) desde 1990 – Fonte: DGEG. Portuguese mineral production (including groundwater) value since 1990 – Data source: DGEG.

Oil and metals: Goliath and David

Another excellent infographic published by Visual Capitalist (a few weeks ago).
They left diamonds out of the picture, a pity. They included graphite, diamond’s darker and duller brother, though; curiously enough, both markets are very similar in value (diamond production marginally smaller, at close to $14B).
Courtesy of: Visual Capitalist

Lundin Mining 2015 Production Results and 2016 Operating and Capital Guidance

In a news release (click here) of January 21 (two days ago) Lundin Mining announces its 2015 Production Results and provides 2016 Operating and Capital Guidance.

Lundin Mining Corporation (TSX:LUN)(OMX:LUMI)

Lundin Mining is a diversified base metals mining company with operations and projects in Chile, Portugal, Sweden, Spain and the U.S.A producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland. (from Lundin’s website)

Mr. Paul Conibear, President and CEO commented: “The Company finished 2015 on a strong note and achieved or exceeded annual production guidance at each operation. In light of the current commodity price environment our operating and capital investment activities will continue to focus on financial flexibility and maximizing cash flows in order to preserve the Company’s strong balance sheet.” (from the news release)

Lundin's production results compared to the latest guidance.png
Lundin’s 2015 production results compared to the latest guidance
2016 Lundin Production and Cost Guidance.png
Lundin’s 2016 Production and Cost Guidance

 

Mineral commodities 2013 total mined volumes and values, average prices

Commodities 2013

Diamonds mined in 2013 total 14 bn USD. How do they compare with other mineral commodities?

Rather than using somebody else’s compilations, I prefer to check values published by (commodity) specialised international organisations or public companies (OPEC, World Gold Council, KPCS, USGS, etc.). After some work, I have arrived to the estimates presented in the table to the left.

Is the ranking surprising? Any obvious error on the table’s values? Comments and suggestions (always) welcome. Yes, reality changed a lot since 2013 (only 18 months ago).

Lower than planned revenue – PETRA DIAMONDS announces for FY015

In a news release published today, PETRA DIAMONDS updates FY2015 targets (update on June 12 for a FY ending June 30).

Carat production is maintained at 3.2 million carats (as a 5 Mct long term – 2019 – target), yet revenues are downgraded to 430 M USD for FY2015. The lower than planned revenue is explained by high variability in ore mix due to their underground production at Finsch and Cullinan being sourced from mature and diluted mining areas, (…) the lower incidence of high quality stones and higher volumes of smaller diamonds reduces the average prices achieved on sale.

You may read the full news release clicking here.

Angolan diamond production in 2014 (November figures)

2014 figures of diamond production will likely be close enough to official targets for the Angolan Government to declare success. The 1.208 billion USD accumulated production reached in November (651 MUSD in this year’s first half) mean that the year’s figure will be close to 1.3 billion USD, just a bit short of the year’s official objective of 1.332 billion USD (within an acceptable margin of error; I would be happy if all forecasts were as good).
This value is marginally above with the 1.278 billion USD value of 2013 (KP statistics) – roughly a 2% increase. It was reached with a mined volume 15% below official target (and higher than forecast prices).
Next year’s official target for diamond production is likely to be more ambitious, as sharply declining oil prices (75% of the Government’s income) will add great pressure to the Angolan budget.