De Beers(1) (000 carats) |
Q3
2024 |
Q3
2023 |
Q3 2024 vs. Q3 2023 |
Q2
2024 |
Q3 2024 vs. Q2 2024 |
YTD
2024 |
YTD
2023 |
YTD 2024 vs. YTD 2023 |
Botswana |
3,994 |
5,837 |
(32) % |
4,710 |
(15) % |
13,691 |
18,565 |
(26) % |
Namibia |
456 |
530 |
(14) % |
561 |
(19) % |
1,650 |
1,761 |
(6) % |
South Africa |
513 |
365 |
41 % |
505 |
2 % |
1,616 |
1,570 |
3 % |
Canada |
603 |
676 |
(11) % |
673 |
(10) % |
1,921 |
2,032 |
(5) % |
Total carats recovered |
5,566 |
7,408 |
(25) % |
6,449 |
(14) % |
18,878 |
23,928 |
(21) % |
(1) Production is on a 100% basis, except for the Gahcho Kué joint operation which is on an attributable 51% basis.
Operational Performance
Rough diamond production decreased by 25% to 5.6 million carats, reflecting a production response to the prolonged period 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.
Production in Namibia 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.
In South Africa, production increased by 41% to 0.5 million carats, as Venetia underground ramps up.
Production in Canada decreased by 11% to 0.6 million carats due to the planned treatment of lower grade ore.
Trading Performance
Trading conditions during the quarter continued to be challenging in light of higher than normal midstream inventory levels and the prolonged period of depressed consumer demand in China. In response, Sights 7 and 8 were merged into a single selling event. In addition, in Q4, the dates for Sights 9 and 10 were brought forward, all with a focus on supporting Sightholders in navigating midstream trading conditions as they head towards the end-of-year retail selling season.
Rough diamond sales in the combined Sight 7 and 8 will be reflected in the Q4 production report, as sales from the event continued beyond the end of the third quarter. Consequently, rough diamond sales in Q3 2024 totalled 2.1 million carats(1) from one Sight, generating $213m in revenue, compared with 7.4 million carats(1) from three Sights in Q3 2023, generating $899m in revenue, and 7.8 million carats(1) from three Sights in Q2 2024, generating $1,039m in revenue.
The year to date consolidated average realised price increased by 4% to $160/ct, reflecting a larger proportion of higher value rough diamonds being sold, partially offset by an 18% decrease in the average rough price index. In Q3, the average rough price index was largely flat compared to Q2 2024.
De Beers Jewellers delivered consistent performance with growth in design-led pieces, while bridal and solitaire demand remained challenged by macro-economic headwinds and slower Chinese recovery. Forevermark's global operations ramped down, consistent with the strategy to focus the brand on India.
New natural diamond marketing collaborations were established with world-leading diamond jewellery retailers: Signet in the US and Chow Tai Fook in China, with further opportunities planned. The collaborations focus on driving long term desirability for natural diamonds in two of the world’s leading consumer countries for natural diamonds. The collaborations will also benefit from promotional messages being amplified through the wide reach of these leading retail businesses.
De Beers also announced the introduction of DiamondProof™, a new device to be used on the jewellery retail counter for rapidly distinguishing between natural diamonds and lab-grown diamonds, supporting retailers in communicating the attributes of natural diamonds, providing customers with enhanced confidence in the authenticity of their natural diamond purchase and deterring undisclosed lab-grown diamonds from entering the natural supply chain.
2024 Guidance
Production guidance(2) 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.
Unit cost guidance for 2024 is unchanged at c.$95/carat(3).
(1) On a consolidated basis, sales volumes in Q3 2024 were 1.7 million carats, Q3 2023 were 6.7 million carats and Q2 2024 were 7.3 million carats. 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. 2024 unit cost guidance was set at c.19 ZAR:USD.
De Beers(1) |
Q3
2024 |
Q2
2024 |
Q1
2024 |
Q4
2023 |
Q3
2023 |
Q3 2024 vs. Q3 2023 |
Q3 2024 vs. Q2 2024 |
YTD
2024 |
YTD
2023 |
YTD 2024 vs. YTD 2023 |
Carats recovered (000 carats) |
|
|
|
|
|
|
|
|
|
|
100% basis (unless stated) |
|
|
|
|
|
|
|
|
|
|
Jwaneng |
1,402 |
1,881 |
2,494 |
3,192 |
3,400 |
(59) % |
(25) % |
5,777 |
10,137 |
(43) % |
Orapa(2) |
2,592 |
2,829 |
2,493 |
2,943 |
2,437 |
6 % |
(8) % |
7,914 |
8,428 |
(6) % |
Total Botswana |
3,994 |
4,710 |
4,987 |
6,135 |
5,837 |
(32) % |
(15) % |
13,691 |
18,565 |
(26) % |
|
|
|
|
|
|
|
|
|
|
|
Debmarine Namibia |
298 |
427 |
505 |
435 |
423 |
(30) % |
(30) % |
1,230 |
1,424 |
(14) % |
Namdeb (land operations) |
158 |
134 |
128 |
131 |
107 |
48 % |
18 % |
420 |
337 |
25 % |
Total Namibia |
456 |
561 |
633 |
566 |
530 |
(14) % |
(19) % |
1,650 |
1,761 |
(6) % |
|
|
|
|
|
|
|
|
|
|
|
Venetia |
513 |
505 |
598 |
434 |
365 |
41 % |
2 % |
1,616 |
1,570 |
3 % |
Total South Africa |
513 |
505 |
598 |
434 |
365 |
41 % |
2 % |
1,616 |
1,570 |
3 % |
|
|
|
|
|
|
|
|
|
|
|
Gahcho Kué (51% basis) |
603 |
673 |
645 |
802 |
676 |
(11) % |
(10) % |
1,921 |
2,032 |
(5) % |
Total Canada |
603 |
673 |
645 |
802 |
676 |
(11) % |
(10) % |
1,921 |
2,032 |
(5) % |
Total carats recovered |
5,566 |
6,449 |
6,863 |
7,937 |
7,408 |
(25) % |
(14) % |
18,878 |
23,928 |
(21) % |
Sales volumes |
|
|
|
|
|
|
|
|
|
|
Total sales volume (100%) (000 carats)(3) |
2,077 |
7,819 |
4,869 |
2,753 |
7,350 |
(72) % |
(73) % |
14,765 |
24,605 |
(40) % |
Consolidated sales volume (000 carats)(3) |
1,665 |
7,333 |
4,612 |
2,637 |
6,742 |
(75) % |
(77) % |
13,610 |
22,045 |
(38) % |
Consolidated sales value ($m)(4) |
213 |
1,039 |
925 |
230 |
899 |
(76) % |
(79) % |
2,177 |
3,398 |
(36) % |
Average price ($/ct)(5) |
128 |
142 |
201 |
87 |
133 |
(4) % |
(10) % |
160 |
154 |
4 % |
Average price index(6) |
107 |
108 |
110 |
125 |
125 |
(14) % |
(1) % |
109 |
133 |
(18) % |
Number of Sights (sales cycles) |
1 |
3 |
2 |
2 |
3 |
|
|
6 |
8 |
|
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 Consolidated average realised price based on 100% selling value post-aggregation.
6 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. The previously reported quarterly figures have been amended from year to date to discreet quarter to date figures.
– ends –