De Beers has reported an 11% year-on-year decline in rough diamond production for the first quarter of 2025, totaling 6.1 million carats.
The drop reflects the company’s continued production adjustments in response to prolonged weak market demand, according to its quarterly production report released on April 24.
In Botswana, output declined by 8% to 4.6 million carats, in line with planned production cuts.
Namibia’s production remained steady, as lower output from Debmarine Namibia was offset by mining higher-grade areas and improved recoveries at Namdeb.
In South Africa, production fell by 19% to 500,000 carats, driven by changes in shift configuration and heavy rainfall in January, which temporarily limited access to mining operations.
Canada saw the largest decline, with output plunging 40% to 400,000 carats due to the planned treatment of lower-grade ore.
De Beers noted that while US consumer demand for diamond jewelry during the year-end holiday season met expectations, rough diamond demand remained subdued in Q1.
The midstream sector continues to adopt a cautious restocking strategy amid excess polished diamond inventories.
The company observed signs of stabilizing polished diamond prices toward the end of the quarter, offering some uplift in industry confidence.
However, macroeconomic uncertainties — particularly the impact of US tariffs — are expected to keep sightholder purchases conservative in the near term.
De Beers continues to focus on preserving cash and sustaining long-term value across the business.
Rough diamond sales from two sightholder events in Q1 2025 amounted to 4.7 million carats (4.2 million on a consolidated basis), generating $520 million in consolidated revenue.
This compares with 4.9 million carats (4.6 million consolidated) and $925 million in revenue during Q1 2024.
The average consolidated realised price dropped by 38% to $124 per carat. This decline was attributed to a shift in the sales mix, stock rebalancing, and a 15% drop in the average rough price index.
De Beers maintained its full-year production guidance at 20 to 23 million carats (on a 100% basis), and its unit cost guidance at approximately $94 per carat.
The company stated it will continue to monitor market conditions and adjust operations as needed.
It clarified that consolidated sales volumes exclude joint venture partners’ 50% share of sales to third parties from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company.
Total production figures are presented on a 100% basis, except for the Gahcho Kué joint operation in Canada, which is reported at De Beers’ 51% attributable share.
The company has assumed an average foreign exchange rate of R18.60 to the US dollar for 2025 cost planning.
