Namibia’s production of rough diamonds decreased by 3% to 1.2 million carats in the quarter ending June 30, 2024.
De Beers says planned lower production at Debmarine was partially offset by planned mining areas with higher grades and recoveries at Namdeb.
South Africa’s production decreased by 8% to 1.1 million carats from 1.2 million carats in the same period last year due to the planned processing of lower-grade stockpiles at Venetia whilst underground operations ramp up over the next few years.
Production in Canada was broadly flat at 1.3 million carats, compared to 1.4 million carats in the quarter ending June 30, 2023.
In Botswana, production was reduced by 24% to 9.7 million carats, down from 12.7 million in the same quarter last year.
The decline was driven by intentional lower production and short-term changes in plant feed at Jwaneng and Orapa.
De Beers’ overall rough diamond production declined to 13.3 million carats from 16.5 million in June 2023.
Total revenue decreased to US$2.2 billion from US$2.8 billion, with rough diamond sales decreasing to US$2 billion from US$2.5 billion.
Total rough diamond sales volumes were down 22% from 15.3 million to 11.9 million carats.
The average realised price is broadly flat at $164/ct (30 June 2023: $163/ct), reflecting a more significant proportion of higher-value rough diamonds sold, offset by a 20% decrease in the average rough price index.
Capital expenditure decreased by 13% from US$302 million to US$264 million, reflecting the phasing of life extension spending for the Venetia underground project.
Investment in the ramp-up of the Venetia underground project continues, as well as the execution of other life-extension projects, including Jwaneng Cut-9.
De Beers Group CEO Al Cook said rough diamond trading conditions continue to be challenging.
Cook added that although demand in the US has been steady and India remains robust, consumers in China are buying substantially fewer luxury products.
He said retailers are very cautious as they restock, creating higher-than-normal levels of midstream inventory.
“Despite these conditions, De Beers made significant progress in delivering our Origins strategy during the year’s first half. We have streamlined the business, materially reducing our costs and ensuring we are best placed to grow value from mining to stores as conditions improve.
“We’re revitalising demand for natural diamonds for a new generation of consumers through our collaborations with Signet, Chow Tai Fook and other leading jewellery retailers.
“We continue to support consumer confidence in natural diamonds, with high demand for our new DiamondProof lab-grown diamond detection instrument.
“While we expect the challenging rough diamond trading conditions to continue in the near-term, the actions we are taking will support the recovery in natural diamond demand and position De Beers well for the future,” Cook said.
