The miner’s inventory has reportedly swelled to an estimated $2 billion, driven by weak demand—particularly in China—lingering effects of pandemic lockdowns, and intensified competition from lab-grown diamonds.
While the FT did not specify its source for the valuation, the report stated: “The scale of the stockpile, which has not been previously reported, has hovered around the $2 billion mark for much of the year, according to the company.”
De Beers’ financial performance has been significantly impacted. In the third quarter, revenues plummeted over 75%, dropping from $899 million in 2023 to just $213 million. The company conducted only one sight during the quarter, a stark contrast to its usual three.
First-half revenues also saw a notable decline, falling to $2.2 billion from $2.8 billion year-on-year.
The company’s latest sight in December saw rough diamond prices reduced by up to 15% in some categories—a rare move for De Beers, which typically resorts to price cuts only as a last resort. Instead, it usually allows sight holders to defer or sell back part of their allocations. Although the company no longer discloses sight revenues, it is estimated to have sold no more than $130 million at its November sight, a sharp drop compared to an average of over $360 million per sight in 2023.
De Beers’ challenges come as its parent company, Anglo American, considers strategic options, including a sell-off or an initial public offering (IPO). The miner’s uncertain outlook has raised questions about its ability to navigate the evolving diamond market, where lab-grown alternatives and shifting consumer preferences continue to reshape the landscape.
The reported stockpile highlights the mounting pressures on De Beers, underscoring the need for strategic adjustments to counter the ongoing downturn and regain market stability.