- Tsaone Segaetsho
The valuation of De Beers continues to decline as Anglo American deepens its strategic reset of the iconic diamond business. In its latest financial results, Anglo American booked a US$2.3 billion pre-tax impairment against its investment in De Beers, further reducing the unit’s carrying value to US$2.3 billion, down from over US$4 billion a year earlier.
This marks the third consecutive writedown in as many years, underscoring the sustained downturn in the natural diamond market and the mounting structural pressures facing the sector.
In a separate statement on Friday, De Beers confirmed:
“An impairment of US$2.3 billion (before tax and non-controlling interests) (2024: US$2.9 billion) to Anglo American’s carrying value of De Beers has been recognised within special items and remeasurements. This was driven by lower forecast prices than previously anticipated, reflecting increased shifts in customer preference between natural diamonds and laboratory-grown diamonds, as well as a surplus of available rough diamonds relative to prevailing demand.”
Anglo American said it had reassessed the business following a third consecutive annual decline in production and a reduction in De Beers’ 2026 output forecast. Chief Executive Duncan Wanblad noted the persistent imbalance in the market, stating: “There is, at the moment, a plentiful supply of rough diamonds in the market.”
De Beers echoed this assessment, reporting continued challenging trading conditions. Total revenue remained subdued at US$3.5 billion (2024: US$3.3 billion), including rough diamond sales of US$3.0 billion (2024: US$2.7 billion).
The Botswana Government, which holds a 15% stake in De Beers, remains a key shareholder as the company navigates this transitional period. Consolidated rough diamond sales volumes increased to 20.9 million carats (2024: 17.9 million carats), broadly aligned with De Beers’ share of global production as the business directed supply towards markets demonstrating relative demand resilience.
Performance was further weighed down by geopolitical tensions and tariff-related uncertainties, while operational headwinds persisted across key jurisdictions.
In Botswana, production declined by 16% to 15.1 million carats (2024: 17.9 million carats), reflecting planned reductions at Orapa, including extended maintenance downtime and the transition of the Letlhakane Tailings Treatment Plant into care and maintenance.
In Namibia, output fell by 7% to 2.1 million carats (2024: 2.2 million carats), primarily due to reduced production at Debmarine Namibia. South African production at Venetia remained broadly flat at 2.2 million carats (2024: 2.2 million carats), consistent with prior-year levels.
In Canada, production decreased by 7% to 2.2 million carats (2024: 2.4 million carats), largely attributable to the planned processing of lower-grade ore.
Despite the subdued performance, Anglo American’s resolve to divest De Beers remains firm. The company confirmed that a structured sale process is currently under way.
Wanblad described the divestment as being at an advanced stage, noting that Anglo must now secure final binding bids and select a preferred partner in consultation with key stakeholders, including the Government of Botswana. He added that the transaction is expected to conclude within the year.
As Anglo American sharpens its portfolio focus, the future ownership of one of the world’s most storied diamond houses now enters a decisive phase, against the backdrop of a rapidly evolving global gemstone market.
