More Diamond News!!!!

[Michael Alexander]

GARETH Penny, MD of diamond miner De Beers, announced on Tuesday that shareholders of Debswana - the Government of the Republic of Botswana and De Beers - had given the green light to proceed with a major extension project at Jwaneng, the world's flagship diamond mine.

The project, also known as Cut-8, is a key component of Debswana's North Star strategy and is the largest ever single capital commitment in the private sector in Botswana.

Cut-8 will ensure profitable and continuous production at the mine until at least 2025. Debswana will invest $500m in capital expenditure and, taking into account all project stages - including feasibility, design, implementation and mining operations, as well as the cost of plant and equipment - the estimated project investment is likely to total $3bn over the next 15 years.

At its peak, the project will create more than 1,000 jobs, De Beers said.

The development will require the removal of over 700 million tonnes of waste between 2010 and 2024, exposing an additional 78 million tonnes of diamond bearing ore, and deepening the Jwaneng pit to a depth of 650 metres.

It is anticipated that this will create access to a further 95 million carats, which could be worth in excess of $15bn over the life of the mine.

Speaking at an industry town hall meeting in Gaborone, Botswana, on Tuesday afternoon, Penny said: "Successfully managing a project of this magnitude and bringing it in on time, on budget, with zero harm to persons and property, and at a minimal impact to the environment, requires a dedicated and steadfast team. The De Beers board has every confidence in Debswana's ability to implement the project to these exacting standards and generate the returns expected."

During his presentation Penny noted that demand for diamonds had been consistently increasing for many years, and as the world recovers from the recession this trend is expected to continue in the long term – particularly as more high net-worth individuals emerge in the developing markets of China and India.

At the same time, there have been no new major diamond discoveries in more than a decade, and the growing demand is likely to significantly outpace what is forecast to be lower levels of diamond supply for many years to come.

Jwaneng Mine contributes approximately 70% of Debswana's total revenue. Diamonds from Debswana, in turn, contribute 50% of public revenue, 33% of GDP, and over 80% of foreign earnings to Botswana.

[Michael Alexander]

Anglo American has agreed in principle to invest another $450-million in diamond company De Beers, Anglo spokesperson James Wyatt-Tilby told Mining Weekly Online on Tuesday.

"Yes, Anglo American has agreed in principle to invest up to $450-million to follow its rights in a De Beers rights issue of up to $1-billion," Wyatt-Tilby said, in response to a Mining Weekly Online question.

"I should add that discussions between De Beers and its banks are ongoing, hence no definitive agreements at this stage," Wyatt-Tilby said.

This follows the $500-million loan that Anglo, which owns 45% of the shares of De Beers, as well as the Oppenheimer family with 40%, and the Botswana government with 15%, provided to the meltdown-hit diamond-mining company in April, in what De Beers MD Gareth Penny described as "additional subordinated loan funding".

Asked in July whether De Beers would need to negotiate any further funding in addition to a $1,5-billion facility that the diamond company was renegotiating well ahead of its March 2010 due date, Penny said he did not anticipate that the company would have to arrange any further funding.

Now De Beers spokesperson Lynette Gould informs Mining Weekly Online all three shareholders have in principle agreed to invest in De Beers again, this time by way of a rights issue, to raise a further $1-billion.

Gould pointed out, however, that the new capital raising would lower De Beers' level of external debt, improve the company's capital structure, and place it in a position to take advantage of any new opportunities that might arise, as the diamond market moved out of recession and into recovery mode.

Gould added, however, that the in-principle decision of the three shareholders to follow their rights would be subject to De Beers' gaining satisfactory refinancing terms for its existing debt.

In following their rights, the Oppenheimer family would be required to invest $400-million and the Botswana government $150-million.

Gould described as "positive and productive" De Beers' process of renegotiating its $1,5-billion standby debt facility that falls due in four months. De Beers' other debt facility of $1,7-billion falls due only in 2012.

In July, Penny said that De Beers had still not dipped into the $500-million loan that its three shareholders had given it in the first six months of this year.

Penny told a "town hall" diamond meeting in Johannesburg last Wednesday that, although the global diamond market had improved, it was still some way from being "out of the woods".

He reported, however, that all De Beers' South African mines had been reopened, bar Namaqualand.

In Botswana, operations at the two big mines, Orapa and Jwaneng, had resumed, and only the small Damtshaa mine remained closed. Production was also under way in Namibia and Canada.

"We are probably now at 80% of our total mining capacity," he said.

Penny also revealed that De Beers and US diamond retailers had financed the new Love Knot diamond advertising campaign, which was expected to boost diamond sales during the Thanksgiving-to-Christmas period.

It was estimated that 100 million Americans would see the advertisement, which features a song that one in ten American brides are said to choose to dance to at their wedding celebrations.

In July, Penny reported De Beers net cash position to be $622-million, more than four times its net cash of $147-million in December.

Anglo American CFO Rene Medori in February revealed that Anglo, as one of the three big shareholders in De Beers, had participated, along with the Oppenheimer family and the Botswana government, in providing the $500-million loan, and that Anglo's share was $225-million.

Medori said that Anglo's loan to De Beers would be interest free for the first two years and subject to market pricing thereafter.

Penny later revealed that the R500-million shareholder loan remained unutilised, and was providing the company with financial headroom in uncertain times.

"We are happy that we have got that headroom. The shareholders have put it in on the basis that it is staying in the company, certainly for the foreseeable future.

"So, it's not a case of having to repay that now or not utilising it. It's there to make sure that De Beers is in a robust position and is able to face the future with confidence," Penny added at the time.

Mining Weekly Online was, however, unable to establish whether this was still the case, or whether all or part of the $500-million had since been used up.

Founded in 1888 and delisted in 2001, De Beers mines and markets 40% of the value of the world's rough diamonds.

[SandyB]

All this  debt .... ??? although  our company  is now leveraged through a loan  from  empowerment deals  it still pays its debts ... and yes  our overdraft facility is watched closely .. and bosslady gets skittish if it  increases  ... when we have to make strategic raw material ourchases we use it , but try to keep it   on zero ... to the point that we actually bought a new machine using the overdraft facility  as opposed to taking out a loan  cheaper than   a finance deal .. ... seems to me  lots of smoke and mirrirs when shareholders invovlved  mmm ???  is this the face of business  nowadays .??? .  debt .. promises   and hopes   hopefully not dashed ..???

[Michael Alexander]

De Beers, the world's largest diamond miner, is set to launch a rights issue to raise up to $1bn (£601m).

After a difficult year that saw diamond prices collapse and De Beers profits fall by 99 per cent, the group faces a $1.5bn debt refinancing in March, out of total net debt of $4bn.

The new money will be used to pay down the debt and also help De Beers take advantage of a recovery in the global economy, the company said yesterday. "By reducing De Beers' level of external debt and improving its capital structure, this investment would better enable the company to take advantage of new opportunities... as the recession gives way to recovery," the company said.

Mining giant Anglo American owns 45 per cent of the diamond producers' shares. A further 40 per cent is held by South Africa's Oppenheimer family, and the remaining 15 per cent is owned by the government of Botswana.

De Beers said yesterday that all three shareholders have agreed in principle to support the issuing of new equity. It has already borrowed nearly $750m in shareholder loans.

In July the company blamed the "extraordinarily difficult" trading environment for half-year profits of just $3m, compared with $316m the year before. It was forced to cut production in South Africa, Botswana and Canada as the global economy slipped into recession and spending on diamonds plummeted.

Stephen Lussier, a De Beers' director, said last month that a deal with the creditor banks was expected around Christmas, although the full refinancing was not likely before early 2010.

[Michael Alexander]

Looks Promising....

"London - Top diamond miner De Beers is upbeat about cash flow after slashing costs by half and is making progress on shoring up its balance sheet after agreeing refinancing terms.

The group - 45 percent-owned by mining group Anglo American - said on Friday it was moving forward on refinancing a $1.5bn debt facility and a rights issue of up to $1 billion announced last month.

"We've agreed a set of terms with our international lenders," David Prager, director of communications, told Reuters. "That process will come to a conclusion over the next several weeks. We're feeling very good about it."

Once the refinancing process is concluded, shareholders will commit funding to help recapitalise the business through the rights issue, he added.

Last month, De Beers said Anglo and other shareholders had agreed to a rights issue to cut its $4bn of debt. The debt facility expires in March.

South Africa's Oppenheimer family owns 40 percent of De Beers and the Botswana government owns the remaining 15 percent.

The group was well placed after cutting costs by 50 percent last year during a slump that hammered the sector, Prager said in an interview.

"We're starting to see demand return and prices beginning to rise and it takes half the cost to produce what we produce," he said. "In the future you can see how that is positive for growth and makes us a strong cash-generative business."

Healthy demand

Christmas sales in the United States, which makes up about half of the diamond jewellery market, were slightly better than expected and demand for rough, or unpolished, diamonds was still healthy, he said.

"We're feeling quite good about the level of production we're at and the price we're at because there's demand for it.

"The 'sight' (sales event) that just ended this week showed very healthy demand coming out of Christmas, so we were quite pleased."

The group - with mines in Botswana, South Africa, Namibia and Canada - sells to specially selected clients, "sightholders", at 10 week-long sales events during the year.

De Beers - which controls about 40 percent of the rough diamond market - posted a 99 percent plunge in first-half net profit to $3 million in July after it closed mines in response to sliding prices amid the global downturn.

The group slashed output in early 2009 and its biggest unit in Botswana shut down completely for several months after demand for luxury goods plummeted. The mines are open again, but at reduced levels as the sector adjusts to the post-crisis economy.

"Production will surely go up in 2010, but only in response to demand going up from clients," Prager said.

De Beers has forecast 2009 output would be around half the level of the 48.1 million carats produced the previous year.

The group cut jobs by 20-25 percent last year in response to the downturn, but Botswana unit Debswana has launched a separate restructuring exercise which is due to conclude in the first quarter of 2011, Prager said.

Debswana, which accounts for the bulk of De Beers output, is a 50-50 joint venture with the Botswana government.

De Beers is due to release annual results on February 11."

[Michael Alexander]

The Diamond Route, which makes 250 000 ha of cross-regional private conservation land owned by diamond-miner De Beers and the Oppenheimer family accessible to tourists, was "open for business", said Diamond Route chairperson Rob Smart at the launch of the initiative.

The Diamond Route is a partnership in environmental conservation and tourism and includes insight into South Africa's cultural, historical, and diamond-mining features. It links nine sites across South Africa and is made up of property owned by both De Beers and the Oppenheimer family. The empowerment partner is Ponahalo Holdings.

It stretches from the far west of the country at the Namaqualand diamond coast site next to the Namaqualand National Park, moves east to Kimberley, which includes the Kimberley big hole site, the Benfontein reserve, the Dronfield nature reserve and the Rooipoort nature reserve, and on to the Tswalu Kalahari reserve, then up to the Brenthurst Gardens in Johannesburg, and the Ezemvelo nature reserve near Pretoria, and finally up to the Venetia Limpopo Nature reserve near Musina.

The project would develop each site's ecological, cultural and heritage characteristics and it was also the ambition to extend the Route beyond the borders of South Africa and into Botswana and Namibia, where De Beers also has operations.

"Together, we will make a lasting contribution to conservation and enhance environmental awareness in communities in the areas in which we operate, illustrating the good that diamonds do," said Smart.

"The Diamond Route starts with us understanding nature, and that we must interact responsibly with nature. We must preserve the areas where we operate so that people can see the legacy of what we leave behind when we finish mining," said De Beers Consolidated Mines MD David Noko.

"Diamonds are the ultimate product of nature - man has the small task of releasing their beauty. Knowing that our product comes from nature, and is an emotional product, we realise that we must 'live up' to the diamonds," said De Beers chairperson Nicky Oppenheimer.

Possibly the most famous diamond-mining town, known as the home of De Beers, Kimberley plays a central role in the diamond route. Tourists can view the "big hole" as well as its historically rich museum and the old town. The central attraction is also surrounded by three sites, which are currently operating as nature reserves, namely Dronfield, Rooipoort, and Benfontein, each of which has accommodation available.

It was hoped that the Diamond Route would enhance environmental awareness among De Beers employees, the communities and the youth, and would also leverage training and educational opportunities, and support community development. Links with universities for shared research opportunities exist.

The concept of the Diamond Route was launched in 2004, when a memorandum of understanding was signed between De Beers, Ernest Oppenheimer & Son, and Birdlife South Africa. Since then, the logo and brand have been rolled out; accommodation and facilities have been upgraded; birding, insects, heritage sites, conservation initiatives, 4x4 trails, and hiking trails have been developed; 14 bird guides have been trained; and five cultural guides have been trained.

"I extend the invitation to jealously guard against degradation of the environment. The shareholders and the Oppenheiner family are absolutely committed to this journey. I am, and my organisation is committed - the challenge is that we all must be," said Noko.

"The Diamond Route is about embracing something much bigger than an eco-tourism trip," added Strilli Oppenheimer, who is the patron of the Diamond Route

[Michael Alexander]

ANGLO American will invest $450m in diamond group De Beers, which is issuing $1bn worth of equity to secure banking facilities and grow the world's largest supplier of rough diamonds.

The decision follows this week's R12.5bn rights offer by Anglo Platinum in which Anglo holds a 79.2% stake. Anglo followed its rights and has underwritten the balance of the offer.

In December last year, De Beers said its three shareholders, Anglo, the Oppenheimer family and the Botswana government, had agreed in principle to a rights issue of up to $1bn to cut its $4bn of debt.

De Beers shut mines early in 2009 to combat the fall in rough diamond prices caused by the global economic slump, which dried up spending on luxury goods. De Beers recorded a 99% fall in its first half profit. Management said it was reducing production to match the fall in demand. It has subsequently returned all its mines to production.

De Beers has been negotiating the refinancing of a $1.5bn debt facility, wanting to renew it before if fell due in March this year. Reuters has reported De Beers has debt of $2bn that falls due in 2012 and a further $500m in other facilities.

Anglo pointed out De Beers has restructured its business, making a 23% cut in its global workforce and bringing operating costs down by nearly half.

"The rights issue forms part of a wider refinancing package for De Beers designed to provide the company with a more appropriate capital structure and to secure ongoing banking facilities, at a time when the demand outlook for diamonds is improved, and to enable De Beers to invest in its future growth as the world�s leading diamond business," Anglo said.

[Michael Alexander]

London - Petra Diamonds sold a 507 carat diamond for $35.3 million on Friday, breaking a record for the highest price ever paid for a rough diamond.

Analysts had estimated the value of the stone, one of the 20 biggest high-quality rough diamonds, at about $25 million.

"It is fitting that the Cullinan Heritage should achieve a sale price of $35.3m, the highest sale price on record ever achieved for a rough diamond, as it has the potential to produce one of the world's most important polished gems," CEO Johan Dippenaar said.

London-listed Petra said in a statement the gem was purchased in a tender by Chow Tai Fook Jewellery Co Ltd in Hong Kong.

Proceeds will help boost Petra's profit for its fiscal year to end-June, after the firm registered a swing to a first-half profit on higher production and sales.

AIM-listed Petra found the gem last September at its 74%-owned Cullinan mine in South Africa, which it bought from sector giant De Beers in 2007.

The Cullinan mine has been the source of many large diamonds, including the world's largest rough diamond - the Cullinan - at 3 106 carats. That gem was cut into the Star of Africa stones that are now set in Britain's crown jewels.

Petra was a member of a consortium that paid $148m when buying the Cullinan mine from De Beers, which is 45% owned by mining group Anglo American.

[Michael Alexander]

LINK: http://www.miningweekly.com/article/350-finsch-diamond-jobs-at-risk-as-de-beers-fights-huge-losses-2010-05-06



"The jobs of more than one-third of the employees at De Beers Finsch diamond mine in the Northern Cape are on the line as the company restructures in order to avoid losing R200-million a year.

De Beers said on Thursday that 350 jobs out of the current complement of 903 may be shed at Finsch, which is one of six De Beers Consolidated Mines (DBCM) mines that employ a total of 2 500 people in South Africa. DBCM is the South African arm of the global diamond business.

De Beers said that the factors impacting on Finsch's profitability included high costs, low sub-2008 diamond prices, declining Block 4 grades and rand strength.

Despite the many steps that the operation had taken to cut costs, the current financial environment continued to impact adversely on the mine's sustainability, and retrenchment would have to take place in order to ensure the mine's sustainability.

Some of the estimated 350 positions were vacancies, and a consultation process would determine the final number of employees that would be affected.

"It is therefore impossible to predict the actual number of people who may finally be affected, until the two-month consultation process is concluded," De Beers added in a media release.

The company would be exploring inter-company transfers, voluntary early retirement, voluntary retrenchment packages and other opportunities for reasonable alternative employment in order to minimise the impact on employees."

[Andrew Darné]

21.05.10
Namdeb records 400m loss
By: JO-MARÉ DUDDY


THE global recession, and subsequent drop in demand for luxury goods worldwide, smashed Namdeb's net profits of N$598 million in 2008 into a net loss of N$414 million last year.
Had it not been that Government granted the company a tax breather of N$141 million for 2009, the financial damage would have been even bigger. However, the deferred tax asset meant that not a cent flowed into the tax coffers of the State – compared to tax of N$1,4 billion Namdeb paid in 2008.
Releasing the company's 2009 financial results late yesterday, Namdeb Managing Director Inge Zaamwani-Kamwi said the year presented "some of the most challenging trading conditions the diamond industry has ever experienced".
She attributed the rough times to three factors: high stock levels throughout the diamond pipeline, tight cash flow and money-strapped consumers losing their appetite for the gems.
Carats sold dropped by 25 per cent from 1,8 million in 2008 to 1,4 million, while carats produced plummeted by 56 per cent – from 2,1 million to 929 000. Diamond sales brought in only N$3,4 billion in 2009, 40 per cent less than the previous year.
By December 31 last year, Namdeb was in the red with N$11 million as far as cash and cash equivalents were concerned, after starting the year with N$34 million. The company was stranded with a net bank overdraft of N$11 million. Namdeb ended 2008 without any overdraft.
Total assets crumbled from N$3 billion at the end of 2008 to N$1,7 billion twelve months later.
The poor results meant that Namdeb was the second worst performer in the De Beers family in 2009.
Whereas the company contributed 4,4 per cent to De Beers' total production of 48,1 million carats in 2008, it could only manage 3,8 per cent in 2009.
The voluntary separation offered to some of Namdeb's workforce, as well as production shutdowns, resulted in production costs dropping from N$4,2 million in 2008 to N$2,8 million.
Zaamwani-Kamwi was cautious about whether the industry would regain some of its sparkle this year.
"As a result of Namdeb's actions, production levels and cost base [which] has been aligned with the reduced demand and inventory and debt levels reduced, and with better than expected consumer sales in the fourth quarter, sentiment has improved markedly from a year ago," she said.
"However, Namdeb will continue to take a cautious and prudent approach to production and sales levels for 2010," she added.
Zaamwani-Kamwi said consumer demand for diamond jewellery is beginning to recover, driven in part by the strength of the developing markets of China and India.
"However, with the fragility of the world economy and perceived weakness of the global recovery post recession, the company would only expect a gradual increase in production levels, sales and prices," she said.

[Michael Alexander]

South Africa's National Union of Mineworkers (NUM) said on Friday it plans an indefinite strike over wages starting on Sunday at the world's biggest diamond producer De Beers.

"The NUM will this morning issue a 24 hour notice to begin a strike on Sunday at all De Beers operations in the country which includes amongst others Voorspoed, Finsch, Namaqualand and Venetia," the NUM, the country's biggest union, said.


The union said in a statement it wants a 15 percent increase in wages, while De Beers, 45 percent owned by global miner Anglo American has offered 8 percent.

[SandyB]

They  just following the trail left by the stadium workers and recently the transnet lot .. impossible demands and huge losses in  business  and ultimately  revenue .. business should embark  on  class action suits  and sue these unions for losses   or damage and cripple  them ...............

[Michael Alexander]

South Africa's National Union of Mineworkers (NUM) said on Saturday it would suspend a strike at the world's biggest diamond producer De Beers while it considers a new company wage offer that could end the dispute.

"If they put it in a formal wage agreement it is likely that we will accept... although we still have to consult our members," NUM spokesman Lesiba Seshoka said.

The strike, which had been due to start on Sunday at all of the company's operations in the country, will be pushed back three days following the new offer made by De Beers late on Friday, Seshoka told Reuters.

"The strike will be suspended to see if we can reach an agreement on Monday. We want De Beers to put it all in a formal wage agreement before cancelling the strike completely," Seshoka told Reuters.

"If we can't reach a formal wage agreement, we will strike from Wednesday," he said.

In its latest offer De Beers, 45 percent owned by global miner Anglo American, proposed raising wages by between 9.5-10 percent and said it was confident of a deal. The union had originally asked for 15 percent.h

"We sought to find common ground with the NUM negotiating team and we have reached that point," Wayne Smerdon, De Beers' industrial relations head, said in a statement.
Click here!


The NUM strike threat was the latest in a series of recent wage disputes in which unions have pressed for increases far above the inflation rate of 5.1 percent, something which economists say might hamper South Africa's recovery from its first recession in 17 years.

A three-week strike at logistics group Transnet, which ended on Thursday, paralysed ports and railways and dented exports and imports in Africa's biggest economy with economists estimating losses at above R7 billion.

Labour federation Cosatu, a powerful ally of the ruling African National Congress with nearly 2 million members, has said it may strike during the World Cup over power price hikes if authorities fail to lower the tariffs.

The ANC dismissed the threats of a national strike.

De Beers said the settlement to its dispute would affect 1 587 out of the company's total 5 500 workers in South Africa.

The company reported a strong first quarter to the end of March with sales five times the level of last year, but is still cautious about the global recovery.

De Beers, which controls around 40 percent of the rough diamond market, was hit hard during the downturn as consumers shied away from luxury goods. - Reuters

[Michael Alexander]

The National Union of Mineworkers (NUM), which has just signed a wage agreement with De Beers, on Wednesday warned the diamond giant that it would fight plans to retrench more than 350 workers at its Finsch mine in the Northern Cape.

The NUM said the diamond giant had issued an "irregular" section 189 notice notifying its workforce of its intention to sack the workers.

"The diamond giant which has this morning settled its wage dispute with the NUM is now faced with an even bigger battle as the NUM intends to fight off the envisaged retrenchments," said the trade union.

NUM's regional secretary in Kimberly Tshimane Montoedi said a war was looming.

"When De Beers engaged us, it spoke of unfavourable economic conditions referring to the recession, but the recession is over now," said Montoedi.

The NUM wants De Beers to revisit its strategy and reverse its intention to retrench the workers.

In the meantime, the signing of the wage agreement averted a strike at De Beers South African operations.

The NUM had planned to strike on Sunday last week but last minute negotiations with De Beers meant the strike was postponed for three days.

Originally, NUM demanded a 15% pay increase against De Beers' offer of 8%. But the diamond giant's latest offer will see increases of between 9.5% and 10% implemented.

[Michael Alexander]

Here;s the big tale,  Gareth Penny to resign!

LINK:http://www.miningmx.com/news/diamonds/De-Beers-Penny-quits-firm.htm

"

   

GARETH Penny who during five years as CEO of De Beers presided over profound changes in the way the Anglo American-owned group operated, said on Friday he would quit the company "in the coming months".
The announcement comes amid a resounding return to financial health for De Beers in the first half of the 2010 financial year following a dismal time in 2009 in which it slashed output and waded into its cost base lopping off a quarter of total staff.
Earnings before interest, tax, depreciation and amortisation doubled to $762m in the six months to end-June while the board confirmed complex rescheduling and shuffling of debt had eased the pressure on its balance sheet.
The profit improvement was owing to far improved economic conditions in which consumers returned to jewellers shops again, particularly in India and China, and the cutting industry began the process of restocking inventories.
Sales of rough diamonds to the DTC, De Beers trading company based in London, totalled $2.6bn including attributable sales from joint ventures the group operates.
De Beers, which also mines diamonds as well as selling them to manufacturers, saw production increase to 15.4 million carats. Carats recovered in the first half of last year totallled only 6.6 million following severe mine cutbacks.
Commenting on the resignation of Penny, De Beers chairman, Nicky Oppenheimer said Penny had positioned the firm for strong revenue growth.
Yet De Beers acknowledged the global economic recovery remained "fragile" especially in the US, Japan and Europe such that it viewed the remainder of the 2010 financial year "with caution and measured optimism".
Said De Beers: "With most restocking activity by the trade now largely completed, further demand growth is dependent on increases in consumer demand, and De Beers remains encouraged by the strength of demand in the emerging markets of Asia, particularly China and India."
Penny resignation unsurprising
The market had been aware of speculation over the past six months that Penny was being asked to step aside so that fresh management could take the company forward.
This was partly linked to some expectations among top-rated analysts that De Beers, which is 45% owned by Anglo American, was considering relisting after being taken private by the Oppenheimer family in 2000.
Both De Beers and Anglo American have told Miningmx that a listing is not on the horizon.
Speaking to Reuters on Friday, Penny said: "Our shareholders have indicated no desire at all to IPO this business. There are not any plans being worked on and that is the bottom line".
Sources close to the situation told Reuters in May that De Beers' owners, including mining group Anglo American, had been considering a possible re-listing of the firm, but felt the time was not right yet.
Penny declined to comment on whether an initial public offering was a future option, saying he had no further information to provide.
In addition to Anglo American, De Beers other shareholders are the Oppenheimer family (40%) and the Botswana government which has a 15% stake.
Said Oppenheimer regarding Penny's plan to resign: "Gareth has made an enormous contribution to De Beers throughout his 22 years with the company and, most recently, five years as CEO.
"He has been a passionate and effective leader during some of the most difficult challenges De Beers has faced in its long history."
De Beers said the process to find a replacement for Penny was underway during which time the group's chief financial officer, Stuart Brown, and Bruce Cleaver, its chief commercial officer, would serve as joint acting CEOs.
There were other changes in the De Beers directorate with Sir Chips Keswick and Oppenheimer family member, Anthony Oppenheimer, both resigning from the board after 17 and 30 years experience respectively.
One of De Beers most recent challenges was its balance sheet where debt and third party debt was $3.2bn and $3.09bn respectively.
In its results commentary, De Beers said net debt now amounted to $1.98bn while third party debt was reduced to $1.87bn.
However, the group is not completely out of the woods with gearing on total debt still relatively high at 42.5% compared to 57.9% in December 2009.
"It's still a bit high, but much better than previously," said RBC Capital Markets diamond analyst, Des Kilalea of De Beers' total net gearing.
"Also remember that De Beers will be generating a lot more cash flow this year, possibly as much as $1bn EBIT if the markets are kind to it," he said."