Things looking up for miner De Beers

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 on refinancing terms.

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 on refinancing terms.

The group - 45percent-owned by mining group Anglo American - said on Friday it was moving forward on refinancing a R114,5billion debt facility and a rights issue of up to R7,6billion announced last month.

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

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

Last month De Beers said Anglo and other shareholders had agreed to a rights issue to cut its R30,5billion debt. The debt facility expires in March.

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

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

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