De Beers output surges even as diamond slump persists

Diamond giant De Beers nearly doubled production of roughs in the second quarter as mines in Botswana, Canada and South Africa processed higher-grade ore, but weak demand and lower prices continued to pressure the business as parent Anglo American (LON:AAL) advances plans to sell the unit.

Diamond production rose 88% year over year to 7.8 million carats in the quarter, lifting first-half output 46% to 14.91 million carats. The increase reflected the impact of an extended maintenance shutdown at Botswana’s Orapa mine in the second quarter of 2025 and planned mining of higher-grade ore at Jwaneng in Botswana and the Gahcho Kué mine in Canada. 

Botswana production more than doubled to 5.5 million carats, while first-half output climbed 43% to 10.3 million carats. Production in Canada rose to 1 million carats as Gahcho Kué accessed a new higher-grade mining area, while South Africa’s Venetia mine increased output 24% to 700,000 carats by processing higher underground volumes.

Market pressures

The surge in second-quarter diamond production did little to improve De Beers’ fortunes as weak demand and lower prices continued to weigh on the market. 

The company said geopolitical and macroeconomic uncertainty, including the conflict in the Middle East, continued to erode consumer confidence, while synthetic lab-grown diamonds pressured demand for lower-value natural stones.

The average realized price fell 32% year over year to $105 per carat in the first half, ,reflecting a higher proportion of lower-value stones in the sales mix as De Beers reduced inventories with a book value of $2 billion.

The average rough diamond price declined 16% amid geopolitical and macroeconomic uncertainty, including the conflict in the Middle East, while synthetic lab-grown diamonds continued to erode demand for lower-value natural stones. Stronger pricing for higher-value goods helped keep the overall average price index stable.

Second-quarter rough diamond sales fell 7% year over year to 7.1 million carats, while revenue dropped 44% to $665 million. For the first half, sales volumes increased 20% to 14.78 million carats, but revenue declined 23% to $1.31 billion.

Sale progresses

The results highlight the challenges facing De Beers as Anglo reshapes its portfolio ahead of the merger with Teck (TSX: TECK.A TECK.B, NYSE: TECK) through the planned separation of the diamond business.

The company said negotiations to sell its 85% stake in De Beers are continuing after selecting a preferred consortium led by former De Beers chief executive Gareth Penny. Botswana, which owns the remaining 15% of De Beers, is considering whether to exercise its right of first refusal and negotiate to increase its own stake.

De Beers also plans to halt production at the Venetia mine for two years beginning in the second half to reduce costs and delay spending, while maintaining full-year production guidance of 21 million to 26 million carats.

Anglo also said it would continue monitoring rough diamond trading conditions and keep supply aligned with demand, leaving open the possibility of further production cuts if market conditions fail to improve.