De Beers hit by $1bn charge

De Beers hit by $1bn charge

By William MacNamara

Published: February 8 2008 10:31 | Last updated: February 8 2008 14:00

De Beers, the world’s biggest diamond producer, posted an annual loss after assuming a nearly $1bn impairment charge on its Canadian operations, but sales and core earnings fell only slightly compared to the previous year.

The cumulative impact of adverse exchange rates, higher fuel costs, and cost overruns over a six-year period at its new Canadian mines led the group to write down $965m, causing a net loss of $521m in the year to December 31 compared to a net profit of $730m last year.