De Beers’ rough diamond production cuts have caught up with Debmarine, which recorded a decline in earnings of N$7.1 billion in just two years between 2023 and 2024.
The company reduced its rough diamond production by 25% to 5.6 million carats in the third quarter of 2024.
Debmarine announced that its earnings before tax, depreciation, and amortisation fell from N$6.76 billion in 2022, with market conditions alone eating away N$2.3 billion in 2023 and another N$4.8 billion in 2024.
The Debmarine CEO Willy Mertens said natural diamond prices have decreased by 35% below 2015 levels, with a further 50% reduction year-to-date in 2025.
Mertens said Debmarine has adjusted its production accordingly, reducing output by 13% year-on-year in 2023 and forecasting a potential further reduction of 5% in 2025.
Even the Benguela Gem’s 602.000 carats, which accounts for 37% of the total output from Debmarine’s seven vessels, could not save the company.
Mertens also said revenue has fallen by a staggering 38%, totalling N$8.3 billion, while Earnings before Interest, Tax, Depreciation, and Amortisation saw an 86% decrease to N$951 million.
Although total assets have decreased by 13%, Debmarine Namibia’s asset base remains robust at N$13 billion, with around N$4 billion in equity.
According to Mertens, the upside is that Debmarine still has a strong balance sheet, positioning itself for future growth when market conditions improve.
In one of its quarterly reports, De Beers said 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.
