De Beers is actively assessing options with its partners to reduce rough diamond production in the future.
The company has kept the 2024 production guidance unchanged at 23-26 million carats.
This comes as rough diamond production decreased by 25% to 5.6 million carats in the third quarter of 2024.
The company says the decline reflects a production response to the prolonged period of lower demand, higher than normal inventory levels in the midstream, and a continued focus on managing working capital.
Production in Namibia decreased by 14% to 0.5 million carats, reflecting intentional action to lower output at Debmarine Namibia, partially offset by planned higher-grade mining and better recoveries at Namdeb.
In Botswana, production decreased by 32% to 4.0 million carats as actions to lower output at Jwaneng were delivered.
In South Africa, production increased by 41% to 0.5 million carats as Venetia underground ramps up.
Production in Canada decreased by 11% to 0.6 million carats due to the planned treatment of lower-grade ore.
Trading conditions during the quarter continued to be challenging due to higher-than-normal midstream inventory levels and the prolonged period of depressed consumer demand in China.
In response, Sights 7 and 8 were merged into a single selling event.
In addition, in Q4, the dates for Sights 9 and 10 were brought forward, all focusing on supporting Sightholders in navigating midstream trading conditions as they head towards the end-of-year retail selling season.
Rough diamond sales in the combined Sight 7 and 8 will be reflected in the Q4 production report, as sales from the event continued beyond the end of the third quarter. Consequently, rough diamond sales in Q3 2024 totalled 2.1 million carats from one Sight, generating US$213 million in revenue, compared with 7.4 million carats from three Sights in Q3 2023, generating US$899 million in revenue, and 7.8 million carats from three Sights in Q2 2024, generating US$1,039 million in revenue.
The year-to-date consolidated average realised price increased by 4% to $160/ct, reflecting a more significant proportion of higher-value rough diamonds sold, partially offset by an 18% decrease in the average rough price index.
In Q3, the average rough price index was largely flat compared to Q2 2024.
De Beers Jewellers delivered a consistent performance with growth in design-led pieces, while bridal and solitaire demand remained challenged by macroeconomic headwinds and slower Chinese recovery.
Forevermark’s global operations slowed, which is consistent with the strategy to focus the brand on India.
New natural diamond marketing collaborations were established with world-leading diamond jewelry retailers: Signet in the US and Chow Tai Fook in China, with further opportunities planned.
The collaborations focus on driving long-term desirability for natural diamonds in two of the world’s leading consumer countries.
The collaborations will also benefit from amplified promotional messages through the broad reach of these leading retail businesses.
De Beers also announced the introduction of DiamondProof™, a new device to be used on the jewelry retail counter for rapidly distinguishing between natural diamonds and lab-grown diamonds, supporting retailers in communicating the attributes of natural diamonds, providing customers with enhanced confidence in the authenticity of their natural diamond purchase, and deterring undisclosed lab-grown diamonds from entering the natural supply chain.
