De Beers has lowered its rough diamond production guidance for 2024 to 26–29 million carats from 29–32 million carats after reporting a 23% decrease to 6.9 million carats in the first quarter.
The lowering of the production guidance was a response to the market’s higher-than-average inventory levels and the expected gradual recovery in rough diamonds through the rest of the year.
The company also revised the unit cost guidance for 2024 c.$90/carat from c.$80/carat to reflect the lower production.
Although production in Namibia remained unchanged, De Beers says Canada and South Africa experienced decreases.
Production in Namibia was broadly unchanged at 0.6 million carats.
In Botswana, production decreased by 28% to 5 million carats, driven by intentional lower production at Jwaneng and a short-term change in plant feed mix at Orapa to process existing surface stockpiles.
In South Africa, production decreased by 19% to 0.6 million carats due to the continued depletion of lower-grade surface stockpiles prior to the planned ramp-up of underground operations at Venetia over the next few years.
Production in Canada decreased by 4% to 0.6 million carats due to the planned treatment of lower-grade ore.
Demand for rough diamonds began to recover during the first quarter of 2024 following improved demand for diamond jewellery in the United States over the year-end holiday season.
The flexibility for rough diamond allocations offered by De Beers in 2023, combined with the voluntary import moratorium on rough diamonds into India in the fourth quarter of 2023, has helped improve the industry’s balance between wholesale supply and demand.
The company says ongoing uncertainty around economic growth prospects has led to a continued cautious purchasing approach by sightholders, and the recovery in rough diamond demand is expected to be gradual through the rest of the year.
