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Production Report for the Second Quarter of 2024

18 Jul 2024

Diamonds(1) (000 carats) Q2
2024
Q2
2023
Q2 2024 vs. Q2 2023 Q1
2024
Q2 2024 vs. Q1 2024 H1
2024
H1
2023
H1 2024 vs. H1 2023
Botswana 4,710 5,829 (19) % 4,987 (6) % 9,697 12,728 (24) %
Namibia 561 612 (8) % 633 (11) % 1,194 1,231 (3) %
South Africa 505 466 8 % 598 (16) % 1,103 1,205 (8) %
Canada 673 683 (1) % 645 4 % 1,318 1,356 (3) %
Total carats recovered 6,449 7,590 (15) % 6,863 (6) % 13,312 16,520 (19) %

1Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.

Rough diamond production decreased by 15% to 6.4 million carats, primarily reflecting the lower production guidance announced in the first quarter production report in response to the higher than normal levels of inventory in the midstream, and the expectation for a protracted recovery in demand.

In Botswana, production decreased by 19% to 4.7 million carats, driven by intentional lower production from short-term changes in plant feed mix at Jwaneng to process existing surface stockpiles. Production at Orapa was broadly flat.

Production in Namibia decreased by 8% to 0.6 million carats, reflecting planned vessel maintenance at Debmarine Namibia, partially offset by planned mining of higher grade areas at Namdeb.

In South Africa, production increased by 8% to 0.5 million carats, reflecting the benefit of processing increased volumes of higher grade underground ore as the Venetia mine transitions underground.

Production in Canada was broadly unchanged at 0.7 million carats.

Demand for rough diamonds recovered slightly at the start of 2024 following the cessation of the voluntary moratorium on rough diamond imports into India in late 2023, and improved demand for diamond jewellery in the United States year-end retail selling season. However, with midstream polished inventories remaining higher than normal and continued cautious restocking from retailers, demand for rough diamonds deteriorated in the second quarter of the year. Market conditions are expected to reflect a protracted recovery in demand.

Consequently, rough diamond sales in Q2 2024 totalled 7.8 million carats (7.3 million carats on a consolidated basis)(1) from three Sights, compared with 7.6 million carats (6.4 million carats on a consolidated basis)(1) from two Sights in Q2 2023, and 4.9 million carats (4.6 million carats on a consolidated basis)(1) from two Sights in Q1 2024.

The H1 2024 consolidated average realised price remained broadly flat at $164/ct (H1 2023: $163/ct), reflecting a larger proportion of higher value rough diamonds being sold, offset by a 20% decrease in the average rough price index as compared to H1 2023.

Rough diamond Sight sale announcements will cease following this Q2 production report as De Beers will report this information on a quarterly basis. Refer to the table below for the quarterly Sight sale information.

2024 Guidance

Production guidance(2) for 2024 is unchanged at 26-29 million carats; however, with higher than normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are actively assessing options with our partners to further reduce production to manage our working capital and preserve cash.

Unit cost guidance for 2024 is unchanged at c.$90/carat(3).

(1) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
(2) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(3) Unit cost is based on De Beers' share of production volume. 2024 unit cost guidance was set at c.19 ZAR:USD.

Diamonds(1) Q2 Q1 Q4 Q3 Q2 Q2 2024 vs.
Q2 2023
Q2 2024 vs.
Q1 2024
H1 H1 H1 2024 vs. H1 2023
2024 2024 2023 2023 2023 2024 2023
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng 1,881 2,494 3,192 3,400 2,955 (36) % (25) % 4,375 6,737 (35) %
Orapa(2) 2,829 2,493 2,943 2,437 2,874 (2) % 13  % 5,322 5,991 (11) %
Total Botswana 4,710 4,987 6,135 5,837 5,829 (19) % (6) % 9,697 12,728 (24) %
Debmarine Namibia 427 505 435 423 503 (15) % (15) % 932 1,001 (7) %
Namdeb (land operations) 134 128 131 107 109 23  % 5  % 262 230 14  %
Total Namibia 561 633 566 530 612 (8) % (11) % 1,194 1,231 (3) %
Venetia 505 598 434 365 466 8  % (16) % 1,103 1,205 (8) %
Total South Africa 505 598 434 365 466 8  % (16) % 1,103 1,205 (8) %
Gahcho Kué (51% basis) 673 645 802 676 683 (1) % 4  % 1,318 1,356 (3) %
Total Canada 673 645 802 676 683 (1) % 4  % 1,318 1,356 (3) %
Total carats recovered 6,449 6,863 7,937 7,408 7,590 (15) % (6) % 13,312 16,520 (19) %
Total sales volume (100%) (000 carats)(3) 7,819 4,869 2,753 7,350 7,561 3  % 61  % 12,688 17,255 (26) %
Consolidated sales volume (000 carats)(3) 7,333 4,612 2,637 6,742 6,407 14  % 59  % 11,945 15,303 (22) %
Consolidated sales value ($m)(4) 1,039 925 230 899 1,051 (1) % 12  % 1,964 2,500 (21) %
Average price ($/ct) 142 201 87 133 164 (13) % (29) % 164 163 1  %
Average price index(5) 109 110 133 133 137 (20) % (1) % 109 137 (20) %
Number of Sights (sales cycles) 3 2 2 3 2 5 5

(1) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
(4) Consolidated sales value includes De Beers Group's 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company.
(5) Average of the De Beers price index for the Sights within the period. The De Beers price index is relative to 100 as at December 2006.