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December 1, 2009
Poor old De Beers
JOHANNESBURG - De Beers, ranked No 1 miner of rough diamonds, has confirmed ongoing speculation that it is actively seeking additional funding, of around $1bn, from its three shareholders. If that amount is provided, by way of loans or fresh equity, the proportional contribution would be $450m from Anglo American, $400m from the Oppenheimer family, and $150m from the Botswana government.
In line with most commodity prices, rough diamonds plunged into a trough around mid-2008. Most prices have recovered well by now, although it seems that diamonds remain somewhat behind the curve. At De Beers, however, a culmination of disparate factors have left what was one of the world's most influential miners on its proverbial cash-flow knees.
Posted by StaffWriter at December 1, 2009 9:52 AM