De Beers’ sales slid 44% year on year in the first quarter as the midstream restocked more slowly due to a buildup of excess polished-diamond inventory and slow demand.
Revenue from rough sales across two sights over the three months came to $520 million, De Beers parent company Anglo American said Thursday. That compares with sales of $925 million from two sights during the same period a year ago. Sales volume slipped 3% to 4.7 million carats, while the average price fell 38% to $124 per carat.
The price decrease reflects a shift in the sales mix toward lower-value goods as well as stock rebalancing, the miner noted. De Beers’ average rough-price index dropped 15% for the three months.
Over last year’s holiday season, US diamond-jewelry demand “was in line with expectations,” the company said. Yet in the first quarter, rough-diamond demand “remained subdued as the midstream continued its cautious approach to restocking due to excess loose polished diamond inventory,” it added.
While industry confidence received a boost from loose polished-diamond prices stabilizing toward the end of the quarter, “ongoing macroeconomic uncertainty, in particular the impact of US tariffs, will likely result in continued cautious sightholder purchases in the near term,” Anglo American observed.
Production fell 11% year on year to 6.1 million carats in the first quarter. Canada saw the sharpest drop, with output dipping 40% to 389,000 carats as the company processed lower-grade ore. In South Africa, recovery slid 19% to 483,000 carats due to changes in shift configuration and heavy rainfall and flooding, which temporarily restricted access to operations, the miner said. Meanwhile, in Botswana, preset plans to reduce output led to an 8% decline to 4.6 million carats.
Anglo is still working on divesting De Beers as it focuses on its core assets. The company is pursuing a dual-track process, which involves looking for a buyer for the company while starting preparations for an initial public offering, which it says it is “committed to completing at the right time and when market conditions allow.”
The miner expects to unearth 20 million to 23 million carats in 2025, it added.
Image: Rough diamonds. (Ben Perry/Armoury Films/De Beers)
