De Beers Group has reported a significant 25% decrease in diamond production during the third quarter of 2024, totaling 5.6 million carats, down from 7.4 million carats in the same period last year. This decline reflects ongoing sluggish demand for diamonds, particularly in China, which has resulted in a surplus of goods within the industry.
Year-to-date, De Beers has produced 18.9 million carats, marking a 21% decrease from 23.9 million carats in 2023. The company attributes this drop to a “prolonged period” of low demand, as well as its strategic focus on cost management, especially as parent company Anglo American seeks to divest its diamond interests.
Production was affected across three of the four countries where De Beers operates. In Botswana, production plummeted by 32% to 4 million carats due to reduced activity at the Jwaneng mine. Namibia saw a 14% decline to 500,000 carats as the company scaled back marine mining. Canadian production fell 11% to 600,000 carats, as operations concentrated on lower-grade ore.
The sole exception was South Africa, where production rose 41% year-over-year to 500,000 carats, driven by ramped-up underground operations at the Venetia mine, the last remaining De Beers mine in the country.
In response to the sluggish market, De Beers merged its sights 7 and 8 into a single selling event in Q3, adjusting the dates for sights 9 and 10 to support sightholders ahead of the holiday season. This consolidation resulted in one sight totaling 2.1 million carats, generating $213 million in revenue, a stark contrast to the three sights in Q3 2023, which totaled 7.4 million carats and brought in $899 million.
Despite the challenges, the average realized price for rough diamonds increased by 4% year-to-date, reaching $160 per carat. De Beers reported selling a higher proportion of valuable rough diamonds, though this was partially offset by an 18% decrease in the average rough price index, which remained steady compared to Q2 2024.
Looking ahead, De Beers maintains its production forecast for the year at 23 million to 26 million carats but is “actively assessing” production reduction strategies with partners.
Additionally, De Beers has launched its “Worth the Wait” marketing campaign in partnership with Signet Jewelers. This initiative emphasizes the emotional journey of personal growth as a parallel to the natural diamond formation process. Targeting “zillennials”—those aged 25 to 30—the campaign will utilize social media and streaming platforms like Hulu and Peacock, as well as in-store promotions across Signet’s retail network.
De Beers is also collaborating on a natural diamond marketing campaign in China with Chow Tai Fook, reinforcing its commitment to expanding its reach in key markets.
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