De Beers production drops 25% in Q3
De Beers Group has recorded a 25% decrease in production to 5.6 million carats in the third quarter.
The company attributed the drop to prolonged periods of lower demand, higher than normal levels of inventory in the midstream and a continued focus on managing working capital.
In Botswana, production decreased by 32% to 4.0 million carats, as actions to lower production at Jwaneng were delivered.
Meanwhile, in Namibia production decreased by 14% to 0.5 million carats, reflecting intentional action to lower production at Debmarine Namibia, partially offset by planned higher grade mining and better recoveries at Namdeb.
Similarly, production in Canada also decreased by 11% to 0.6 million carats due to planned treatment of lower grade ore.
However, in South Africa, production increased by 41% to 0.5 million carats, as Venetia underground ramps up.
During the quarter rough diamond sales also plummeted to 2.1 million carats from one Sight, compared with 7.4 million carats from three Sights in Q3 2023, and 7.8 million carats from three Sights in Q2 2024.
De Beers Jewellers delivered consistent performance with growth in design-led pieces, while bridal and solitaire demand remained challenged by macroeconomic headwinds and slower Chinese recovery.
Looking ahead, De Beers said: “Production guidance for 2024 is unchanged at 23-26 million carats; however, as the midstream continues to hold higher than normal levels of inventory and the expectation for a recovery remains protracted, De Beers is actively assessing options with our partners to reduce production going forward.”