/ 15 August 2000

DIAMONDS ARE DE BEERS’ BEST FRIEND

ACQUISITIVE South African diamond group De Beers is likely to post a hefty 112 percent increase in earnings per share when it releases its interim results on Wednesday, analysts say. The world’s top gem producer and marketer is expected to benefit from record first-half sales of rough gems, which hit $3.52bn, a 44 percent rise on the previous year. De Beers headline earnings per share (EPS) for the six months to June 2000 were forecast at $1.55 versus $0.73 in the same period of 1999, according to a consensus of seven analysts polled. A Reuters survey saw an interim dividend of between $0.33 and $0.59 from $0.27 a year earlier, with the consensus at $0.38. ”They have had very good sales so the first-half earnings should be exceptional,” said SG Securities analyst Hurbey Geldenhuys. Sales of rough diamonds for the year are expected to be a record $5.8 billion although a slowdown in the second half of 2000 was expected. De Beers’ half-year earnings were also expected to benefit from the incorporation of De Beers’ share of Anglo American plc earnings. De Beers has a 30 percent stake in mining group Anglo. – Reuters