International News
Anglo American Reports $2.9 Billion Impairment Charge on De Beers Amid Market Struggles
De Beers’ 2024 results show significant declines in production and revenue due to ongoing challenges in the rough diamond market, with cautious outlook for 2025.
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.
International News
Geopolitical Ceasefire and Fed Signals Shape Gold and Silver Outlook AUGMONT BULLION REPORT
- Safe-Haven Dynamics – Gold is consolidating around $4750 and Silver around $78, recouping some losses from the previous session after President Trump’s unilateral announcement extending the ceasefire with Iran. However, a second round of peace talks has broken down. It remains unclear whether Iran or U.S. ally Israel will formally accept the extended ceasefire, which entered its third week, introducing continued uncertainty into safe-haven demand.
- Geopolitical Developments – Trump indicated further military action would be paused pending a new Iranian proposal and the completion of negotiations. Separately, Vice President JD Vance scrapped a scheduled visit to Islamabad after Iran conveyed through Pakistan its refusal to participate in the proposed talks. Iran additionally maintained that the Strait of Hormuz would remain closed as long as the U.S. Navy continues intercepting vessels in the region, sustaining a key supply-chain risk factor.
- Macro-economic Signals – Precious metal price action continues to be driven primarily by ceasefire-related headlines and broader liquidity conditions. The ceasefire extension has led markets to interpret the situation as a partial de-escalation, reducing immediate crisis premiums. Additional downward pressure on metals emerged from the Senate confirmation hearing of Federal Reserve Chair nominee Kevin Warsh, whose commitment to institutional independence signaled a potentially hawkish policy posture going forward.
Technical Triggers
- Gold is trading in the range of $4650 (~ Rs 151,500) and $4850 (~Rs 155,000) over the past few days. Either a breakout or breakdown will give a 3-4% directional move.
- Silver is trading in the range of $76 (~ Rs 242,500) and $81 (~Rs 257,000) over the past few days. Either a breakout or breakdown from this band will give a 3-4% price swing.
Support and Resistance
| International Gold Support Level International Gold Resistance Level Domestic Gold Support Level Domestic Gold Resistance Level | : $4600/oz : $5000/oz : Rs 153,000/10 gm : Rs 160,000/10 gm |
| International Silver Support Level International Silver Resistance Level Domestic Silver Support Level Domestic Silver Resistance Level | : $75/oz : $82/oz : Rs 240,000/kg : Rs 260,000/kg |
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