De Beers’ rough diamond production decreased by 23% to 6.9 million carats in the first quarter of 2024 compared to 8.9 million carats a year earlier, primarily due to changes implemented to lower production in response to market inventory levels.
Anglo-American said diamond output in Botswana eased 28% to 5 million carats during the period, driven by deliberate lower production at Jwaneng and a short-term change in plant feed mix at Orapa to process existing surface stockpiles.
It said production in Namibia was largely unchanged at 600 000 carats while in South Africa, output fell by 19% to 600 000 carats, due to the continued depletion of lower-grade surface stockpiles before the planned ramp-up of underground operations at Venetia over the next few years.
Production in Canada also dropped by 4% to 600 000 carats, due to the planned treatment of lower-grade ore.
It said the full-year 2024 production guidance has been cut to between 26 million and 29 million carats, with unit costs revised accordingly to about $90 per carat.
Anglo said demand for rough diamonds began to recover during the first quarter of 2024 following improved demand for diamond jewellery in the United States over the year-end holiday season.
“The flexibility for rough diamond allocations offered by De Beers in 2023, combined with the voluntary import moratorium on rough diamonds into India in the fourth quarter of 2023, has helped improve the industry's balance between wholesale supply and demand,” it said.
“However, ongoing uncertainty around economic growth prospects has led to a continued cautious purchasing approach by Sightholders and the recovery in rough diamond demand is expected to be gradual through the rest of the year.”
Meanwhile, De Beers’ rough diamond sales in the first quarter of 2024 totalled 4.9 million carats from two sights, compared with 9.7 million carats from three sights in the first quarter of 2023.
Anglo said the consolidated average realised price increased by 23% to $201 per carat, reflecting a change in the sales mix towards higher value rough diamonds and the benefit of the price adjustment in the first sight of 2024, which helped improve demand in higher price categories.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
