Anglo American-owned De Beers, the world’s largest diamond producers, expects its long-term growth prospects to improve, but its chief executive warned that the overall sales environment is likely to remain challenging.
Duncan Wanblad said difficult market conditions resulted in a 23 percent year-on-year drop in revenue, with total revenue falling to $3.3 billion in 2024 from $4.3 billion in 2023. The decline was primarily driven by a 25 percent reduction in rough diamond sales, which dropped to $2.7 billion from $3.6 billion the previous year.
During the same period, rough diamond sales volumes decreased by 28 percent to 17.9 million carats, down from 24.7 million carats in 2023. The average realised price increased marginally by 3 percent to $152/ct (2023: $147/ct), reflecting a larger proportion of higher-value rough diamonds sold. However, the average rough price index declined by 20 percent, falling from 133 in 2023 to 107 in 2024.
Lower sales volumes, a decreased average price index, and higher unit costs resulted in an underlying EBITDA of $(25) million, compared to $72 million in 2023. Unit costs rose to $93/ct (2023: $71/ct), primarily due to reduced production volumes in response to market conditions.
Capital expenditure decreased by 14 percent to $536 million from $623 million in 2023, driven by cash preservation measures and optimisation initiatives. This included rephasing the Venetia underground life-extension project and rationalising stay-in-business capital expenditure. De Beers noted that spending on other life-extension projects remained consistent, with projects progressing on schedule.
Mining operations maintained steady performance despite reduced output, as the company adjusted production levels to match market demand and address high inventory levels. Rough diamond production fell by 22 percent to 24.7 million carats from 31.9 million carats. In Botswana, production decreased by 27 percent to 17.9 million carats (2023: 24.7 million carats) due to planned reductions at Jwaneng.
Namibia’s production declined by 4 percent to 2.2 million carats, with a 13 percent drop at Debmarine Namibia offset by higher-grade mining and improved recoveries at Namdeb. In South Africa, production rose by 8 percent to 2.2 million carats as Venetia underground progressed and ore grades improved, although output remains below historical levels due to the reliance on surface stockpiles. Canada’s production decreased by 16 percent to 2.4 million carats due to the planned treatment of lower-grade ore.
De Beers expects near-term market conditions to remain challenging in 2025, with subdued polished diamond demand and ongoing inventory management within the industry. However, medium-term prospects are more positive, as production cuts by several producers, stabilising demand in China, and normalised inventory levels are expected to drive modest price growth. Consumer demand and retailer re-stocking are anticipated to benefit from marketing efforts promoting natural diamonds.
The company has set its 2025 production guidance at 20–23 million carats, reflecting current trading conditions, with plans to increase production to 28–31 million carats by 2027 as the market recovers.
