\n The group posted an underlying loss before interest, taxes, depreciation and amortisation (EBITDA) of $511 million for the year, compared with a $25 million loss in 2024.\n <\/p>\n
\n Rough diamond production fell 12% to 21.7 million carats, as the company adjusted output to reflect prevailing market conditions.\n <\/p>\n
Core African operations under pressure<\/p>\n
\n De Beers\u2019 African footprint remains anchored in Botswana, South Africa and Namibia.\n <\/p>\n
\n In Botswana, operations are conducted through the Debswana joint venture, where Jwaneng, widely regarded as the world\u2019s most valuable diamond mine by revenue, and Orapa remain core contributors to output.\n <\/p>\n
\n Given Botswana\u2019s reliance on diamond revenues for fiscal income and foreign exchange, sustained price weakness carries broader economic implications.\n <\/p>\n
\n Amid softer global demand and elevated inventories, the company has adopted a disciplined production strategy.\n <\/p>\n
\n Industry data show that stockpiles have expanded over the past year as rough sales slowed, prompting producers to calibrate output more closely to market conditions.\n <\/p>\n
\n South Africa\u2019s Venetia mine, now operating underground, continued production amid weaker market conditions, while Debmarine Namibia\u2019s offshore operations similarly aligned output with subdued demand.\n <\/p>\n
<\/p>\n
Price slump, tariffs and global headwinds<\/p>\n
\n Total revenue held broadly steady at around $3.5 billion, but lower realised prices and inventory rebalancing weighed on earnings.\n <\/p>\n
\n The downturn reflects broader pressures in the global diamond sector. Chinese luxury demand, a key driver of high-value sales, has weakened, while laboratory-grown diamonds continue to gain market share.\n <\/p>\n
\n The strain has been compounded by U.S. trade policy. Tariffs imposed on India, the world\u2019s largest diamond cutting and exporting hub, after President Donald Trump introduced 50% levies in August have added uncertainty to the supply chain.\n <\/p>\n
\n Although Trump has said a rollback could be in place by April, producers remain cautious about near-term demand.\n <\/p>\n
Cost control and restructuring<\/p>\n
\n In response, De Beers reduced unit costs and cut capital expenditure to $353 million, prioritising cash preservation and operational efficiency.\n <\/p>\n
\n Anglo American, the parent company, recognised a $2.3 billion impairment linked to weaker long-term price expectations and shifting consumer preferences.\n <\/p>\n
\n Chief Executive Officer Duncan Wanblad said on a call with reporters that he hopes the current downturn represents a low point for the business.\n <\/p>\n
\n The company continues to pursue its \u201cOrigins\u201d strategy, aimed at streamlining operations and stimulating demand for natural diamonds through marketing campaigns and industry agreements.\n <\/p>\n
Trading Conditions<\/p>\n
\n Near-term trading conditions are expected to remain challenging as midstream buyers manage inventories conservatively and macroeconomic volatility persists.\n <\/p>\n
\n However, De Beers expects gradual inventory normalisation to support medium-term stability.\n <\/p>\n
\n For 2026, the group forecasts production of between 21 million and 26 million carats, aligning output closely with demand.\n <\/p>\n
\n Meanwhile, Anglo American is progressing with a structured separation process for De Beers as part of a broader portfolio reshaping.\n <\/p>\n
\n Despite global headwinds, Africa\u2019s diamond sector remains strategically important, particularly for Botswana, where mining revenues play a central role in economic stability and public finances.\n <\/p>\n","protected":false},"excerpt":{"rendered":"The group posted an underlying loss before interest, taxes, depreciation and amortisation (EBITDA) of $511 million for the…\n","protected":false},"author":2,"featured_media":295981,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":{"0":"post-295980","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/295980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=295980"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/295980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/295981"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=295980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=295980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=295980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}