Vessel maintenance at Debmarine Namibia affected rough diamond production to decrease by 8% to 0.6 million carats.
In Botswana, production decreased by 19% to 4.7 million carats, driven by intentional lower production from short-term changes in plant feed mix at Jwaneng to process existing surface stockpiles.
In South Africa, production increased by 8% to 0.5 million carats, reflecting the benefit of processing increased volumes of higher-grade underground ore as the Venetia mine transitions underground.
Production in Canada was broadly unchanged at 0.7 million carats.
Overall, De Beers recorded a decrease of 15% to 6.4 million carats across the board.
The company says this primarily reflects the lower production guidance announced in the first quarter production report in response to the higher-than-normal inventory levels in the midstream and the expectation for a protracted recovery in demand.
De Beers, however, says the demand for rough diamonds recovered slightly at the start of 2024 following the cessation of the voluntary moratorium on rough diamond imports into India in late 2023.
It says there was improved demand for diamond jewellery in the United States year-end retail selling season.
However, with midstream polished inventories remaining higher than usual and continued cautious restocking from retailers, demand for rough diamonds deteriorated in the year’s second quarter.
Market conditions are expected to reflect a protracted recovery in demand.
Consequently, rough diamond sales in Q2 2024 totalled 7.8 million carats (7.3 million carats on a consolidated basis) from three Sights, compared with 7.6 million carats (6.4 million carats on a consolidated basis) from two Sights in Q2 2023, and 4.9 million carats (4.6 million carats on a consolidated basis from two Sights in Q1 2024).
The H1 2024 consolidated average realised price remained broadly flat at $164/ct (H1 2023: $163/ct), reflecting a more significant proportion of higher-value rough diamonds being sold, offset by a 20% decrease in the average rough price index as compared to H1 2023.
Rough diamond Sight sale announcements will cease following this Q2 production report as De Beers will report this information every quarter.
The production guidance for 2024 is unchanged at 26-29 million carats; however, higher-than-normal inventory levels remain in the midstream and an expectation for a protracted recovery.
De Beers says they are actively assessing options with our partners to reduce production further, manage our working capital, and preserve cash.
