De Beers Lowers Production Guidance for 2024

London—Diamond production fell 23 percent in the first quarter for De Beers Group and the company said it is cutting its guidance for the year amid continued oversupply in the market and a sluggish rough diamond market. 

According to the Q1 production report released Wednesday, production fell in all countries where De Beers mines diamonds, expect Namibia. 

In Botswana, which accounts for more than 70 percent of the company’s annual output, production fell to 5 million carats in the first quarter, down 28 percent from 6.9 million carats in Q1 2023. 

De Beers intentionally cut back on operations at Jwaneng due to market conditions while it focused on processing existing surface stockpiles at Orapa. 

In South Africa, production fell 19 percent year-over-year from 739,000 carats to 598,000 carats. 

De Beers continues to mine lower-grade surface stockpiles while Venetia, its sole remaining mine in South Africa, ramps up for the transition to underground production.  

Production fell 4 percent in Canada to 645,000 carats but ticked up 2 percent in Namibia to 633,000 carats.  

As De Beers noted when reporting on its latest round of rough diamond sales last week, sightholders remain hesitant about purchasing too many goods.  

First-quarter 2024 rough diamond sales totaled 4.9 million carats from two sights, down from 9.7 million carats from three sights in Q1 2023, but up from the 2.8 million carats sold during two sights in Q4 2023.  

The consolidated average realized price also increased, rising 23 percent to $201 per carat, reflecting the increase of higher-value rough diamonds in the sales mix and De Beers dropping prices, which stimulated demand for higher-priced goods.  

De Beers said it expects the recovery in rough diamond sales to be “gradual” this year.  

The company is lowering its production guidance for 2024 to 26-29 million carats, down from 29-32 million carats, a 9-10 percent difference.