De Beers Faces Another Production Cut Amid “More Challenging Conditions”

De Beers is set to announce another reduction in its 2024 production forecast due to deteriorating market conditions, particularly in China, IDEX Online reports.

Duncan Wanblad, CEO of De Beers’ parent company Anglo American, stated that his team is “actively assessing options with our partners to further reduce production to manage our working capital and preserve cash.”

Back in April, De Beers reduced its production guidance by 10%, lowering it from the original forecast of 29-32 million carats to 26-29 million carats.

The Q2 2024 Production Report, released on July 18, did not provide a new guidance figure. However, even the current low estimate of 26 million carats would mean an 18.5% year-on-year decrease.

“De Beers’ diamond production reflects the lower revised guidance announced in our first quarter production report,” said Wanblad. “Trading conditions became more challenging in the second quarter as Chinese consumer demand remained subdued. With higher than normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are therefore actively assessing options with our partners to further reduce production to manage our working capital and preserve cash.”

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