6 compared to 2007 to an operating income of 1

The number one world of rough diamonds with about 40 of market share, the African Group De Beers has two major problems. On the one hand, it must adapt its offer to aggregate demand in full depression. On the other hand, it must work balances of its balance sheet, increased by a net debt of 3.55 billion at the end 2008 ( 12.6 compared to 2007) to an operating income of 1.22 billion ( 0.5 on the previous year) and cash flow from operations of 700 million dollars ( 17 compared to 2007). Some 1.5 billion should be returned in 2010.

If De Beers has managed to reduce its debt in 2008, it would be otherwise in 2009. A London analyst said, it would be year to end of 2007 levels ($4.06 billion). If that were the case, its level exceeds that of equity, said the specialist. Worse, "it is not clear how the company to take is to refinance the portion of the debt in 2010". It is unlikely that De Beers will have access to bank loans and it is not acquired its principal shareholders to bring fresh capital if the assets had a negative net value, goes the analyst.

High surveillance

End of February, Gareth Penny, the Director-General of the mining company, has managed to collect 500 million which will be paid in the current fiscal year. The three shareholders of De Beers committed themselves in proportion to their participation: 45 will be paid by Anglo American. 40 by Central Holdings, the holding of the Oppenheimer family company, and 15 by Botswana. There are strong chances that Cynthia Carroll, the Anglo American Iron Lady, has placed the producer of diamonds under high surveillance. It is perfectly aware that the enhancement of its group, was also heavily in debt (11 billion at December 31, 2008), depends on it.

The prospects for activity of De Beers in 2009 are dark. The operating income will be "negligible", alert the London analyst. Interviewed by the "Financial Times", Stuart Brown, Chief Financial Officer of the mining firm, did not exclude that the turnover based half. In issuing a message which is optimistic, yesterday, the British spokesman for De Beers wrote in an e-mail addressed to the Agency Bloomberg sales faced a strong recovery since the beginning of the year. These somewhat contradictory statements are not likely to reassure investors.

De Beers has no choice to clean up its balance sheet to significantly lower its spending. This is why the African society has decided its production cuts up to 40 of its current volumes. Namdeb, the Namibian joint venture with De Beers owns half of the shares, has ceased any activity April 1 and for three months. In Botswana, Debswana, another joint venture which the mining group controls 50 of the capital, has suspended its operations between February 25 and April 14. But an extension of this measure is not to exclude. The Canadian mine of Beers of Snap Lake runs at 30-40 of its capacity. At the same time, the company is always looking a purchaser for its South African mine of Namaqualand. Without much success so far.