De Beers' Venetia mine
Amid ongoing challenging rough diamond trading conditions, De Beers has revised its production guidance for 2025 to between 20-million and 23-million carats, compared with previous guidance of between 30-million and 33-million carats.
In a report on its operational performance and market conditions for the fourth quarter of 2024, the company says it continues to monitor rough diamond trading conditions and will respond accordingly.
It has also announced that it is undertaking an impairment review of De Beers’ carrying value, assessing the impact of diamond market conditions and a general fall in demand in China, which is likely to lead to an impairment at the full-year results.
"We continue to assess market conditions and are currently implementing actions to further manage cash flow, spending and inventory levels in 2025," the miner states.
It points out that challenging trading conditions persisted throughout the fourth quarter of 2024 as cautious retailer purchasing and higher-than-normal levels of inventory in the midstream suppressed demand for rough diamonds.
Although rough diamond sightholder sales for the quarter improved to 4.6-million carats for $543-million in revenue, compared with the 2.8-million carats sold for $230-million in the fourth quarter of 2023, sales volumes for the 2024 full-year were down 28% year-on-year.
Meanwhile, De Beers' mining operations delivered a steady operational performance during the quarter, albeit at lower output levels as the business continued to reconfigure production in response to prevailing market conditions.
Rough diamond production decreased by 26% to 5.8-million carats, reflecting a proactive production response to the prolonged period of lower demand and higher-than-normal levels of inventory in the midstream.
"De Beers continues to focus on managing working capital, and despite low sales volumes, inventory has reduced slightly year-on-year through managing purchases and downstream stocks," the miner reports.
In Botswana, production decreased by 31% to 4.2-million carats, as a result of planned actions to lower production at Jwaneng.
Production in Canada also decreased, by 43% to 500 000 ct as a result of planned actions to treat lower-grade ore.
Production in Namibia increased by 3% to 600 000 ct, reflecting planned higher-grade mining and better recoveries at Namdeb, partially offset by intentionally lower production at Debmarine Namibia.
In South Africa, production increased by 27% to 600 000 ct, owing to Venetia underground operations and a slight improvement in the grades of processed ore.
