De Beers Namibia Reports Profit Decline Amid Lower Diamond Prices and Global Market Challenges
De Beers Namibia has reported a decline in earnings for the first half of 2025, with underlying operating profit falling to N$1.09 billion (US$58 million)—a 12% drop from N$1.24 billion (US$66 million) recorded during the same period last year.
According to the company’s latest financial report, underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) fell to N$1.47 billion (US$78 million), down from N$1.58 billion (US$84 million) in H1 2024.
The drop in profitability was primarily attributed to a significant 22% decline in the average price per carat, which fell from N$7,886 (US$435) to N$6,164 (US$340).
Despite the challenging global diamond market, Namibia’s production volumes remained relatively stable, with De Beers reporting output of 1.166 million carats, slightly below the 1.194 million carats produced in the first half of 2024.
“Production in Namibia was flat at 1.2 million carats (30 June 2024: 1.2 million carats), as planned reductions at Debmarine Namibia were offset by higher-grade mining and improved recoveries at Namdeb,” the company noted.
This contrasts with De Beers Group’s global performance, which saw a 23% decline in overall production, largely driven by weak demand and high inventory levels in the midstream segment.
Capital expenditure in Namibia was sharply reduced from N$326 million (US$18 million) to N$126 million (US$7 million) as part of De Beers’ broader cash preservation strategy.
On a positive note, operational efficiency improved during the reporting period, with unit costs per carat falling from N$4,895 (US$270) to N$3,898 (US$215), reflecting better cost management and enhanced productivity.
