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DDC - Dominion Diamond News Story

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Last Trade - 01/11/17

Sector
Basic Materials
Size
Micro Cap
Market Cap £n/a
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Revenue £497.4m
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De Beers diamond unit says open to doing deals

Thu 27th July, 2017 2:41pm
* Increases marketing spending 
    * Indian market recovering from impact of demonetisation 
 
    LONDON, July 27 (Reuters) - Anglo American's  AAL.L  diamond 
unit De Beers is open to buying new assets at the right price, 
its chief financial officer said on Thursday, after the unit 
reported a 3 percent increase in underlying earnings. 
    The company as a whole announced the resumption of dividend 
payments and said it had cut debt and improved cash flow, 
meaning it could be positioned for growth.  urn:newsml:reuters.com:*:nL5N1KI1XY 
    "We are open to M&A activity, but it's got to be the right 
opportunity," CFO Nimesh Patel said in a telephone interview. 
    "We will look at opportunities - the right quality, 
long-term sustainable and first and foremost at the right price. 
We benchmark against our own organic production." 
    Following a deep downturn, miners such as Anglo American 
were focused on disposal of assets rather than buying them, but 
analysts say balance sheets have been repaired and some players 
have begun to do deals.     
    Earlier this month, Canada's Dominion Diamond Corp  DDC.TO  
said it was being bought by The Washington Companies for $1.2 
billion.  urn:newsml:reuters.com:*:nL3N1K840Y 
    Anglo American has said diamonds, along with copper and 
platinum, are at the centre of its business. They have the 
advantage of being counter-cyclical as a luxury product that can 
hold value when basic commodities fall. 
    Diamond sales last year were hit in India, the third biggest 
market, by the withdrawal of high-value notes, but that market 
is recovering, De Beers says.  urn:newsml:reuters.com:*:nL8N1IY6RI  urn:newsml:reuters.com:*:nL8N1J8081 
    It has increased its 2017 marketing budget by 20 percent to 
around $140 million, including both its own advertising and a 
contribution to the industry body the Diamond Producers 
Association's campaign to boost sales. 
 
 (Reporting by Barbara Lewis; editing by Susan Thomas) 
 ((Barbara.hm.Lewis@thomsonreuters.com; +44 207 542 2932; 
Reuters Messaging: 
barbara.hm.lewis.thomsonreuters.com@reuters.net)) 
 
Keywords: ANGLOAMERICA DEBEERS/
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