De Beers to slash production costs
Wednesday 07 October 1992
The company gave no details, but analysts said they believed a quarter of the workforce of the Premier mine, near Pretoria, would be laid off. Premier produces 25 per cent of the world's large investment gems.
De Beers has been hit by the slump in demand for luxury goods. In July, it reported lower first-half earnings, and said its final dividend was likely to be cut. It also announced a cut in the diamond quota controlled by its subsidiary, the Central Selling Organisation, which runs the world cartel.
Analysts said the measures were unlikely to improve the prospects for De Beers' share price, which has dropped to R47.57 (nearly pounds 10) from a high of R93 six months ago.
The Russians have indicated that they may start selling their dollars 4bn stockpile of diamonds on the free market. A De Beers spokesman said the effect would be 'catastrophic'.
Michael Coulson, analyst with Credit Lyonnais in London, believes that De Beers may have to close mines if the new measures are not enough.
- 1 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 4 John Travolta addresses former pilot's gay romance allegations publicly for the first time
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...