Anglo American Cuts De Beers Value Again as Diamond Market Shifts

Gems News: Anglo American has delivered another heavy blow to the global diamond industry, slashing the carrying value of De Beers to $2.3 billion from $4.1 billion, marking the third write-down in as many years. The move reflects growing uncertainty in the natural-diamond sector as consumer preferences evolve and market pressures intensify. The reduction, announced in the company’s annual results, signals that the once-dominant gem giant continues to struggle against shifting industry realities and slowing demand.

The impairment, valued at $2.3 billion before tax, came amid lower long- and short-term price forecasts for rough diamonds, highlighting the scale of the downturn. Investors had expected a correction, but the size of the cut surprised many analysts, reinforcing concerns about De Beers’ long-term position. In the middle of this uncertainty, this Gems News report notes that the company still managed to post a 6% rise in revenue to $3.49 billion in 2025, even as trading conditions remained difficult and prices weakened across multiple categories.

Sales Rise but Profitability Falls

De Beers recorded a 23% increase in rough-diamond sales volume to 23.9 million carats on a 100% basis, while consolidated sales climbed 17% to 20.9 million carats. The value of those sales rose 11% to $3 billion. Yet the gains were driven largely by special discounted deals designed to clear less desirable inventory rather than by genuine demand growth. These strategic transactions weighed heavily on margins, contributing to a sharp fall in prices and pushing the miner deeper into losses.

The company’s rough-price index dropped 12% when excluding special sales and fell as much as 25% when those deals were included. Average selling prices slipped 7%, reflecting a market struggling with oversupply and cautious buyers. Underlying losses widened dramatically to $739 million, while EBITDA losses surged to $511 million, underlining the financial strain caused by weaker prices and aggressive selling strategies.

Strategic Uncertainty and Potential Sale

Anglo American continues to explore options to sell or separate De Beers, with executives confirming advanced discussions with several strategic buyers. Potential suitors reportedly include government-backed groups and private consortia, with Botswana expected to play a key role in any final decision. Industry observers say the decline in natural-diamond demand, alongside rapid growth in lab-grown alternatives, has reshaped market dynamics and forced major producers to rethink their strategies.

The wider market has also faced pressure from increased rough supply, particularly from Angola, and retailers delaying clear differentiation between natural and synthetic diamonds. These factors, combined with macroeconomic uncertainty and weaker demand from China, have added to the industry’s challenges. While sales volumes rose, the broader picture reveals a company adapting to survive rather than expanding through strength, and the next few months may define the future ownership and direction of one of the world’s most historic diamond names.

De Beers now stands at a crossroads where market adaptation, pricing discipline, and strategic partnerships will be critical in determining whether the company can regain stability in an increasingly competitive and evolving gemstone landscape.

For the latest on the diamond market, keep on logging to Gems News.

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