Anglo American Flags First-Half Loss at De Beers

De Beers will likely be in the red for the first half of this year following a decline in rough-diamond sales in the second quarter, according to parent company Anglo American.

Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) at the diamond company “is expected to be negative” for the six-month period, the 85% owner said Thursday in its quarterly production report.

De Beers’ rough-diamond revenue on a consolidated basis – excluding sales by its joint-venture partners – fell 44% year on year to $665 million in the three months that ended June 30. Consolidated sales volume dropped 11% to 6 million carats, with total sales down 7% at 7.1 million carats.

The average selling price declined 37% year on year to $110 per carat on a consolidated basis, while De Beers’ average price index, reflecting like-for-like fluctuations, dipped 17%. The company held three sights during the quarter, the same as last year.

This meant overall sales value for the first half of 2026 was lower than a year earlier despite an increase in the first quarter – and despite a rise in sales volume.

Consolidated revenue slipped 23% year on year to $1.31 billion for the six months, even as consolidated sales volume rose 13% to 12.4 million carats and total sales volume advanced 20% to 14.8 million carats.

This reflected an increase in the proportion of lower-value goods available “due to the current inventory mix,” Anglo American explained. The average consolidated selling price for the first half slid 32% to $105 per carat because of that sales mix as well as a 16% decline in the average rough-price index.

Since the first quarter of this year, that index has taken into account the cut-price inventory sales that De Beers carried out in 2025. It does not include the price reduction that De Beers implemented at its July 2026 sight.

“Rough-diamond trading conditions remained challenging in the first half of 2026,” Anglo American explained. “The geopolitical and macroeconomic landscape remains uncertain, with the onset of the conflict in the Middle East adding to economic and consumer-confidence risks.”

In addition, lab-grown diamonds continued to impact demand for lower-value natural diamonds, adding pressure in more price-sensitive categories, the company reported.

“However, stronger pricing for higher-value goods supported a stable overall average price index throughout the period.”

Venetia offset

Production jumped 88% year on year to 7.8 million carats for the second quarter and gained 46% to 14.9 million for the first half. This was due to a favorable comparison with last year, when an extended maintenance shutdown occurred at the Orapa mine in Botswana. It also reflected the planned mining of higher-grade ore at Jwaneng in Botswana and Gahcho Kué in Canada.

De Beers’ production guidance for the year remains unchanged at 21 million to 26 million carats. The company expects the recently announced two-year production pause at the Venetia mine and planned maintenance at Botswana’s Orapa and Jwaneng deposits to counterbalance the first-half surge. It continues to monitor trading conditions to align output with demand, the report added.

Anglo American did not address last week’s reports that it had selected a consortium led by former De Beers CEO Gareth Penny as its preferred bidder for the diamond miner.

Duncan Wanblad, CEO of Anglo American, said the parent company was “progressing the sale process for De Beers, while concurrently advancing streamlining opportunities to improve cost performance and reduce capital expenditure to minimize the impact from challenging diamond markets.”

De Beers’ EBITDA loss came to $511 million for the whole of 2025, up from $25 million in 2024. In the first half of 2025, it incurred an underlying EBITDA loss of $189 million.

Image: Rough and polished diamonds next to each other at De Beers’ Global Sightholder Sales offices in Gaborone, Botswana. (Ben Perry/Armoury Films/De Beers)