De Beers is expected to post a loss for the first half of 2025, as parent company Anglo American cites “stock rebalancing initiatives” that led to the sale of rough diamonds at reduced margins. The move aimed to offload out-of-balance inventory, sold at lower prices than originally purchased, according to the group’s latest production report.

“Accordingly, we expect to report negative underlying EBITDA for De Beers in the first half of 2025,” Anglo American stated.

Consolidated rough-diamond sales (excluding joint ventures) rose 14% year-on-year to $1.19 billion in Q2, despite a 7% drop in volume to 6.8 million carats. Total sales, including joint ventures, slipped 3% to 7.6 million carats. The company attributed the performance to targeted sales efforts during the quarter.

These “stock rebalancing” transactions — effectively quiet, low-margin deals with sight-holders — were confirmed by a De Beers spokesperson. “These transactions incurred lower margins as they were purchased in a higher price environment than they were sold at,” the spokesperson told.

Despite lower-margin deals, the average consolidated price per carat rose 23% year-on-year to $174 in Q2, reflecting strong demand for higher-value stones. However, De Beers’ rough-price index (which excludes the discounted inventory sales) dropped 13%, largely due to price reductions implemented at its December 2024 sight.

For the full first half of 2025, consolidated rough-diamond sales fell 13% to $1.71 billion. Volume dropped 8% to 11 million carats (consolidated), and 3% to 12.3 million carats overall. The average price per carat fell 5% to $155, with a 14% decrease in the price index offset partially by higher-value goods sold in Q2.

Anglo American noted continued weakness in rough-diamond trading during the first half of the year. While sentiment improved toward the end of Q1, the U.S. tariff announcement in April stalled polished-diamond activity.

Consumer demand for diamond jewelry remained “broadly stable,” contrasting with the strained conditions in the midstream.

In response to market pressures, De Beers slashed its Q2 production by 36% year-on-year to 4.1 million carats. First-half output declined 23% to 10.2 million carats. Despite this, the company has maintained its full-year 2025 production forecast at 20 to 23 million carats but said it will “respond accordingly” as conditions evolve.

These developments come amid Anglo American’s ongoing efforts to sell De Beers. On Wednesday, Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, stated the country’s intent to increase its ownership stake, seeking “full control over this strategic national asset and the entire value chain, including marketing.”

“A formal process for the sale of De Beers is advancing, despite the current challenging market conditions,” Anglo American confirmed.