De Beers’ profit is growing, thanks to Anglo American

De Beers profits rose sharply in the first half

In brief: The world's largest diamond mining company De Beers has sent up a net profit in the first half and suddenly announced the departure of CEO.

Net profit of De Beers in the light of special items, totaled $ 255 million compared with $ 3 million for the same period last year. Sales of diamonds rose by 84% to $ 2.6 billion, while production rose to 15.4 million carats from 6.6 million last year.

Anglo American mining company owned 45% De Beers “Gareth Penny told the board that in his opinion, this is the right time to resign” – the company said without giving a reason. Penny will go in the “coming months”, and he was temporarily replaced by finance director Stuart Brown and commercial director Bruce Cleaver. De Beers, controls 40% of the diamond market, significantly affected by the global recession, as demand for luxury goods has fallen. The company was forced to suspend work on some deposits at the beginning of last year. “While we have seen increasing demand in the first half, the situation in the global economy remains fragile, especially in such major markets of diamonds as the U.S., Japan and Europe, so we look at the rest of 2010 with caution and cautious optimism,” – said in a statement.

Ukrainian Globalist
2010-07-23 12:15, Economics.

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