Recently DeBeers reported Interim Financial Results for 2024. The report said, prepared on a consolidated accounting basis, except for production, which is stated on a 100% basis except for the Gahcho Kué joint operation in Canada, which is on an attributable 51% basis.
Total sales volumes on a 100% basis were 12.7 million carats (30 June 2023: 17.3 million carats). Total sales volumes (100%) include De Beers Group’s joint arrangement partners’ 50% proportionate share of sales to entities outside De Beers Group from Diamond Trading Company Botswana and Namibia Diamond Trading Company.
Pricing for the mining businesses is based on 100% selling value post-aggregation of goods. Realised price includes the price impact of the sale of non-equity product and, as a result, is not directly comparable to the unit cost. Unit cost is based on consolidated production and operating costs, excluding depreciation and operating special items, divided by carats recovered. Includes rough diamond sales of $2.0 billion (30 June 2023: $2.5 billion).
De Beers EBITDA margin includes the impact of mining as well as non-mining activities, third‑party sales, purchases, trading, brands and consumer markets and corporate. Mining EBITDA margin for De Beers is 40% (30 June 2023: 50%).
Commenting on the first half of 2024, De Beers Group CEO Al Cook said: “Rough diamond trading conditions continue to be challenging. Although demand in the US has been steady and India remains robust, consumers in China are buying substantially fewer luxury products. Retailers are very cautious as they restock, creating higher than normal levels of midstream inventory.
“Despite these conditions, De Beers made great progress in delivering our Origins strategy during the first half of the year. We have streamlined the business, materially reducing our costs and ensuring we are best placed to grow value from mining to stores as conditions improve.
We’re revitalising demand for natural diamonds for a new generation of consumers through our collaborations with Signet, Chow Tai Fook and other leading jewellery retailers. And we continue to support consumer confidence in natural diamonds, with high demand for our new DiamondProof lab-grown diamond detection instrument.
“While we expect the challenging rough diamond trading conditions to continue in the near-term, the actions we are taking will support the recovery in natural diamond demand and position De Beers well for the future.”
At the Operational performance front, rough diamond production reduced to 13.3 million carats (30 June 2023: 16.5 million carats). This reflects the decision to intentionally lower production and change short term plant feed mix in response to the weaker rough diamond demand due to the higher than average levels of inventory in the midstream and cautious retailer restocking.
In Botswana, production was reduced by 24% to 9.7 million carats (30 June 2023: 12.7 million carats), driven by intentional lower production and short-term changes in plant feed at Jwaneng and Orapa.
Namibia production decreased by 3% to 1.2 million carats (30 June 2023: 1.2 million carats), with planned lower production at Debmarine Namibia, partially offset by planned mining of areas with higher grades and recoveries at Namdeb.
South Africa production decreased by 8% to 1.1 million carats (30 June 2023: 1.2 million carats), due to planned processing of lower grade stockpiles at Venetia whilst the underground operations ramp-up over the next few years. Production in Canada was broadly flat at 1.3 million carats (30 June 2023: 1.4 million carats).
