De Beers has maintained its production guidance for 2024 at 23 million to 26 million carats as the midstream continues to hold higher-than-normal levels of inventory and the expectation for recovery remains protracted.
The diamond group, which is 85% owned by Anglo American, had been actively assessing options with its partners to reduce production going forward.
Its rough diamond production for the third quarter dropped by 25% to 5.6 million carats, reflecting a production response to the prolonged period of lower demand, higher-than-normal levels of inventory in the midstream, and a continued focus on managing working capital.
Output from Botswana fell 32% to 4 million carats as actions to lower production at Jwaneng were delivered while that of Namibia dropped 14% to 500 000 carats, reflecting intentional action to lower production at Debmarine Namibia, partially offset by planned higher grade mining and better recoveries at Namdeb.
Production in Canada also decreased by 11% to 600,000 carats due to the planned treatment of lower-grade ore.
However, De Beers’ production in South Africa increased by 41% to 500,000 carats as Venetia underground ramps up.
Commenting on the state of the market, Anglo said trading conditions during the quarter continued to be challenging in light of higher-than-normal midstream inventory levels and the prolonged period of depressed consumer demand in China.
“In response, Sights 7 and 8 were merged into a single selling event,” it said.
“In addition, in the fourth quarter, the dates for Sights 9 and 10 were brought forward, all with a focus on supporting sightholders in navigating midstream trading conditions as they head towards the end-of-year retail selling season.”
Anglo said the year-to-date consolidated average realised price increased by 4% to $160 per carat, reflecting a larger proportion of higher-value rough diamonds being sold, partially offset by an 18% decrease in the average rough price index.
De Beers Jewellers also delivered a consistent performance with growth in design-led pieces, while bridal and solitaire demand remained challenged by macroeconomic headwinds and slower Chinese recovery. “Forevermark's global operations ramped down, consistent with the strategy to focus the brand on India,” it said.
“New natural diamond marketing collaborations were established with world-leading diamond jewellery retailers: Signet in the US and Chow Tai Fook in China, with further opportunities planned.”
Mathew Nyaungwa, Editor in Chief, Rough&Polished from Saurimo, Angola
