De Beers to Halve Diamond Stockpile
By CHAIM EVEN-ZOHAR
Wednesday, November 3 1999
Wednesday, November 3 1999
Published on AllBusiness.com
London (Nov. 3, 1999)—De Beers will more than halve its $4.6 billion diamond stockpile to between $1.5 billion to $2 billion in a move to increase shareholder value.
The working stock level in London gradually will be reduced, with the company continuing according to fluctuations in demand to ensure the diamond market is little affected by such action.
Revenues received from the sales of the stockpile diamonds will be used to boost shareholder value in the company.
The decision to cut the stockpile will not affect the role of the Central Selling Organization, which is predicted to reach sales of more than $5 billion by the end of this year.
The working stock level in London gradually will be reduced, with the company continuing according to fluctuations in demand to ensure the diamond market is little affected by such action.
Revenues received from the sales of the stockpile diamonds will be used to boost shareholder value in the company.
The decision to cut the stockpile will not affect the role of the Central Selling Organization, which is predicted to reach sales of more than $5 billion by the end of this year.
