De Beers has faced a significant setback in its 2024 financial performance, reporting a 22% drop in rough diamond production to 24.7 million carats, down from 31.9 million carats in 2023. This decline reflects the company’s strategic response to a difficult market, where inventory levels remain high, and consumer demand, particularly in China, has been sluggish. Revenue also took a major hit, falling 23% to $3.3 billion, largely due to a 25% reduction in rough diamond sales. Despite these challenges, the average realized price of diamonds slightly rose, driven by sales of higher-value stones.

The downturn in production and sales also resulted in a negative EBITDA of $(25) million, compared to $72 million the previous year. De Beers cited a 20% drop in the rough price index and higher operational costs due to the reduced output. Looking ahead, the company expects continued challenges in 2025, with production forecasts set between 20-23 million carats. Although demand remains subdued, especially in key markets like China, De Beers is optimistic about moderate rough price growth in the medium term, driven by planned production cuts and a potential recovery in demand.

In addition to the financial challenges, De Beers announced a $2.9 billion impairment charge to Anglo American’s carrying value of the company, largely due to macroeconomic factors and sector-specific difficulties. As part of its strategy to navigate the downturn, De Beers is focusing on cost reduction and streamlining operations, with a particular emphasis on its natural diamond offerings. The company also secured a new 10-year sales agreement with Botswana and a 25-year extension on its mining licenses, ensuring continued access to critical diamond reserves.