De Beers’ loss widens to $511m amid ongoing diamond market challenges
A lower average rough price index and stock rebalancing initiatives had a significant impact on diamond miner De Beers’ earnings for the 2025 financial year, resulting in an underlying loss before interest, taxes, depreciation and amortisation of $511-million, compared with a loss of $25-million in 2024.
The company’s rough diamond production decreased by 12% to 21.7-million carats for 2025, from 24.7-million carats in 2024.
“The mining operations delivered solid operational performance at lower output levels, as the business produced into prevailing demand,” the company says in a statement on its preliminary results for 2025.
Challenging rough diamond trading conditions persisted, with total revenue having remained subdued at $3.5-billion compared with $3.3-billion in the prior year.
Total rough diamond consolidated sales volumes of 20.9-million carats were broadly in line with De Beers’ share of production globally as the business supplied into areas experiencing demand, the company explains.
The full-year consolidated average realised price declined by 7% to $142/ct from $152/ct in the prior year, primarily owing to a 12% decrease in the average rough price index and the impact of stock rebalancing initiatives, partially offset by strong demand for higher-value diamonds.
The average rough price index does not reflect the impact of rebalancing initiatives. The equivalent price index reduction including the impact of stock rebalancing action would be a 25% year-on-year decrease, De Beers points out.
This was primarily owing to the impact of the stock rebalancing initiatives in the trading business, with stock on the balance sheet bought at a higher price having been sold at a significantly lower effective index, generating trading losses of $424-million, De Beers avers.
Further, the prior year also benefited from the one-off sale of a non-diamond royalty right of $127-million.
Unit costs reduced by 8% to $86/ct, with lower rough diamond production volumes being offset by cost reduction initiatives across the operations, the company highlights.
Capital expenditure (capex) decreased by 34% to $353-million from $536-million, reflecting cash preservation measures with the rephasing of Venetia underground life extension and rationalisation of stay-in-business capex spend.
An impairment of $2.3-billion (before tax and non-controlling interests) to parent company Anglo American’s carrying value of De Beers has been recognised within special items and remeasurements, driven by lower forecasted prices than previously, owing to greater shifting of customer preference between natural diamonds and laboratory-grown diamonds, and surplus available rough diamonds relative to prevailing demand.
De Beers continued to pursue its Origins strategy in 2025, focused on streamlining the business while encouraging consumer demand for natural diamonds.
The signing of the Luanda Accord (formalising a government-industry marketing commitment for natural diamonds); the launch of new natural diamond marketing campaigns in the US and India; and the launch of a new branded polished diamond offering are among efforts being taken to lift consumer demand.
De Beers also advanced its brand portfolio strategy during the year.
The business delivered on its multiyear cost reduction target, achieving over $100-million cumulative overhead cost savings through the streamlining strategy, it points out.
OUTLOOK
Near-term trading conditions are expected to remain challenging. Continued macroeconomic volatility, conservative inventory management in the midstream and laboratory-grown diamond penetration are expected to limit rough diamond demand in the near term.
In the medium term, gradual normalisation of inventory levels provide a foundation for improvement, the company posits.
While the full differentiation of natural diamonds and laboratory-grown diamonds is expected in the medium term, it has been delayed as some retailers seek to maintain high retail margins on laboratory-grown stones despite the continued reduction in wholesale prices, De Beers avers.
Consumer demand is expected to remain stable in the US and India while a gradual recovery in China is expected as economic conditions stabilise.
De Beers will continue to monitor rough diamond trading conditions to align output with prevailing demand.
Unit cost guidance for 2026 is about $80/ct, lower than the 2025 unit cost of $86/ct, reflecting the benefit of slightly higher production volumes and ongoing cost-control measures.
As previously announced, Anglo American continues to pursue a dual track separation for De Beers and a structured sale process is currently under way.