Anglo American will likely report losses at De Beers for the first half of 2025 after the diamond miner sold off some of its rough at low margins.
The parent company appeared to acknowledge the rumored special deals with sightholders under which it had reportedly sold inventory quietly at reduced prices.
De Beers’ consolidated rough-diamond sales — excluding those by its joint-venture partners — rose 14% year on year to $1.19 billion in the second quarter, Anglo American reported Thursday. Sales volume fell 7% to 6.8 million carats on a consolidated basis and declined 3% to 7.6 million carats in total.
Those volumes benefited from “stock rebalancing initiatives” that saw De Beers sell specific assortments at lower margins, Anglo American explained in its quarterly production report.
“Accordingly, we expect to report negative underlying EBITDA [earnings before interest, taxes, depreciation and amortization] for De Beers in the first half of 2025,” the group said.
The rebalancing initiatives relate to “specific transactions of out-of-balance stock,” a De Beers spokesperson said in a statement to Rapaport News. “These transactions incurred lower margins as they were purchased in a higher price environment than they were sold at.”
Still, the average price of sales — also on a consolidated basis — rose 23% year on year to $174 per carat for the quarter. This was consistent with strong demand for higher-value diamonds. The miner’s average rough-price index, which excludes the stock rebalancing sales, fell 13% for the period compared with a year earlier. This likely reflects price cuts De Beers implemented at the December 2024 sight.
For the first half of 2025, consolidated rough sales dipped 13% to $1.71 billion, while sales volume decreased 8% to 11 million carats on a consolidated basis. Sales declined 3% in total to 12.3 million carats.
The average consolidated selling price fell 5% to $155 per carat for the six months, reflecting a 14% drop in the price index. The second-quarter upturn in high-value goods partially offset this, the report explained.
“Rough-diamond trading conditions remained challenged in the first half of 2025,” Anglo American continued. “Improved industry sentiment at the end of the first quarter led to stabilization of polished-diamond prices. But uncertainty surrounding US tariffs announced in April subsequently slowed polished trading.”
Consumer demand for diamond jewelry remained “broadly stable” in the first half, in contrast to the difficult conditions in the trade, the company added.
De Beers trimmed its production by 36% to 4.1 million carats for the second quarter in response to the market downturn. First-half output dived 23% to 10.2 million carats. The company has kept its 2025 production plan steady at 20 million to 23 million carats, but it “continues to monitor rough-diamond trading conditions and will respond accordingly.”
The news comes amid Anglo American’s ongoing process of selling De Beers. On Wednesday, Botswana Minister of Minerals and Energy Bogolo Kenewendo said the country wished to increase its stake in the company “to ensure Botswana’s full control over this strategic national asset and the entire value chain, including marketing,” according to a report in the Financial Times.
“A formal process for the sale of De Beers is advancing, despite the current challenging market conditions,” Anglo American said.
Update, July 24, 2025: Additional comment from De Beers about stock rebalancing has been added to this story.
Image: Diamonds at DTC Botswana, a De Beers-government joint venture that sorts and values rough. (Ben Perry/Armoury Films/De Beers)