Anglo American says Q2 diamond trading conditions weaker, with less China demand

Anglo American plc Production Report for the second quarter ended June 30. Duncan Wanblad, Chief Executive of Anglo American, said, in part: “De Beers’ diamond production reflects the lower revised guidance announced in our first quarter production report. Trading conditions became more challenging in the second quarter as Chinese consumer demand remained subdued. With higher-than-normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are therefore actively assessing options with our partners to further reduce production to manage our working capital and preserve cash. “At the end of June, the Grosvenor mine experienced an underground fire and the workforce was safely evacuated without injury. As a result of the incident, the operation is suspended and Grosvenor’s production is excluded from the Steelmaking Coal guidance for the second half of the year…We are working at pace to execute on the asset divestments, including Steelmaking Coal – with the intention of optimizing value for our shareholders, while minimizing frictional costs, mitigating execution risks, and enabling the delivery of significant sustainable cost savings. Work is progressing with the aim of substantively completing this transformation by the end of 2025.”