SourcingJul 24, 2023
2 More Miners Note Softness in Rough Diamond MarketSourcingJul 28, 2023
De Beers’ Profit Drops in First Half
Production and total sale volumes were both flat from the year prior.
De Beers’ first-half report reiterated sightholders’ cautious behavior amid softening in consumer demand.
London—Following a slow start to the year, De Beers’ half-year 2023 report shows the total rough diamond sale volume of 15.3 million carats was in line with the previous year.
Despite that, revenue fell 21 percent to $2.8 billion from the previous year’s $3.6 billion. The decline comes amid months of weak customer demand, low average selling price, and increased expenses.
Average diamond price decreased 23 percent to $163 per carat from $213 per carat in 2022, due to the increase in lower-value diamonds sold in 2023.
Demand for rough was impacted by continuous macroeconomic headwinds and high levels of polished-diamond inventory in the midstream coming into 2023, according to the company.
The average rough diamond price index also decreased by 2 percent, reflecting softening in consumer demand for diamond jewelry and the previously mentioned build-up in rough diamond inventory.
Rough diamond production was fairly flat at 16.5 million carats, compared to last year’s first-half production at 16.9 million carats.
The first-half production numbers reflected strong performance in three of the countries where De Beers operates, Botswana, Namibia, and Canada, offset by reductions in South Africa due to the transition of the Venetia open pit.
In South Africa, production decreased by 59 percent to 1.2 million carats from 9 million carats in 2022.
The country’s only mine, the Venetia open pit, closed at the end of 2022. Workers continue to process lower-grade surface stockpiles as it transitions to underground operations, where De Beers said first production was recently achieved. The company said production will ramp up over the next few years.
De Beers began the process of taking Venetia underground in 2013, a $2 billion project expected to extend the life of the mine to 2046 and produce around 94 million carats.
The Venetia project, along with other continued life-extension projects, led to a capital expenditure increase of $302 million, up 21 percent from $250 million in June of last year, per the first-half report.
Diamond production in Botswana, which accounts for more than 75 percent of De Beers’ total production, was at 12.7 million carats, a 9 percent increase from the 11.7 million carats produced in 2022.
The increase was driven by planned treatment of higher-grade ore at the Orapa mine, De Beers said.
De Beers Group and the government of Botswana have also reached a new sales agreement in the years-long renegotiation of the agreement that expired at the end of 2020. Following numerous extensions of the current contract, the new agreement for the country’s rough diamond production now extends to 2033 while the mining licenses for Debswana, the mining company operated jointly by De Beers and the government, now extend to 2054.
In Namibia, production was up 21 percent to 1.2 million carats compared to 1 million carats in the first half of 2022. The increase was driven by continued output from the Benguela Gem, the new marine mining vessel that commenced production in March 2022. The company said the rise is also due in part to ongoing expansion of the mining area at the land operations.
Canadian production was up 9 percent to 1.4 million carats from 1.2 million carats in 2022 as the treatment of higher-grade ore offset planned plant maintenance, De Beers said.
Production guidance for the year remains 30 million to 33 million carats, down from the 34 million carats it mined in 2022.
Related stories will be right here …
Despite that, revenue fell 21 percent to $2.8 billion from the previous year’s $3.6 billion. The decline comes amid months of weak customer demand, low average selling price, and increased expenses.
Average diamond price decreased 23 percent to $163 per carat from $213 per carat in 2022, due to the increase in lower-value diamonds sold in 2023.
Demand for rough was impacted by continuous macroeconomic headwinds and high levels of polished-diamond inventory in the midstream coming into 2023, according to the company.
The average rough diamond price index also decreased by 2 percent, reflecting softening in consumer demand for diamond jewelry and the previously mentioned build-up in rough diamond inventory.
Rough diamond production was fairly flat at 16.5 million carats, compared to last year’s first-half production at 16.9 million carats.
The first-half production numbers reflected strong performance in three of the countries where De Beers operates, Botswana, Namibia, and Canada, offset by reductions in South Africa due to the transition of the Venetia open pit.
In South Africa, production decreased by 59 percent to 1.2 million carats from 9 million carats in 2022.
The country’s only mine, the Venetia open pit, closed at the end of 2022. Workers continue to process lower-grade surface stockpiles as it transitions to underground operations, where De Beers said first production was recently achieved. The company said production will ramp up over the next few years.
De Beers began the process of taking Venetia underground in 2013, a $2 billion project expected to extend the life of the mine to 2046 and produce around 94 million carats.
The Venetia project, along with other continued life-extension projects, led to a capital expenditure increase of $302 million, up 21 percent from $250 million in June of last year, per the first-half report.
Diamond production in Botswana, which accounts for more than 75 percent of De Beers’ total production, was at 12.7 million carats, a 9 percent increase from the 11.7 million carats produced in 2022.
The increase was driven by planned treatment of higher-grade ore at the Orapa mine, De Beers said.
De Beers Group and the government of Botswana have also reached a new sales agreement in the years-long renegotiation of the agreement that expired at the end of 2020. Following numerous extensions of the current contract, the new agreement for the country’s rough diamond production now extends to 2033 while the mining licenses for Debswana, the mining company operated jointly by De Beers and the government, now extend to 2054.
In Namibia, production was up 21 percent to 1.2 million carats compared to 1 million carats in the first half of 2022. The increase was driven by continued output from the Benguela Gem, the new marine mining vessel that commenced production in March 2022. The company said the rise is also due in part to ongoing expansion of the mining area at the land operations.
Canadian production was up 9 percent to 1.4 million carats from 1.2 million carats in 2022 as the treatment of higher-grade ore offset planned plant maintenance, De Beers said.
Production guidance for the year remains 30 million to 33 million carats, down from the 34 million carats it mined in 2022.
In response to a general slowdown in demand, De Beers combined the auctions for its fifth and sixth sales cycles.
In the sixth sales cycle, rough diamond sales slid again from $456 million in the fifth sales cycle (revised from a preliminary $450 million estimate) to a provisional $410 million estimate.
De Beers said demand for branded diamond jewelry remains strong and De Beers Jewellers had a "solid first-half performance, with double-digit growth in bridal and collections.”
The company also said it continues to focus on developing the brand in China. A lack of Chinese demand in the first half due to a wave of Covid-19 infections that impacted consumer behavior negatively affected De Beers’ H1 figures.
CEO Al Cook said that by third-cycle sales, the company was seeing “signs of recovery in consumer confidence following the relaxation of travel restrictions.”
Though short-term challenges remain, the company said consumer desire for natural diamonds will remain robust in key markets long-term, although supply of rough diamonds is expected to decline.
The company sees potential for stakeholders and retailers’ focus on the importance of diamond provenance to reinforce demand for rough diamonds.
De Beers announced last month that the Tracr™ blockchain platform, which tracks a diamond’s journey from the source, would open to diamond industry participants.
The company said the “immutable data” Tracr provides will underpin consumer confidence in natural diamonds and their provenance.
The company also said it continues to focus on developing the brand in China. A lack of Chinese demand in the first half due to a wave of Covid-19 infections that impacted consumer behavior negatively affected De Beers’ H1 figures.
CEO Al Cook said that by third-cycle sales, the company was seeing “signs of recovery in consumer confidence following the relaxation of travel restrictions.”
Though short-term challenges remain, the company said consumer desire for natural diamonds will remain robust in key markets long-term, although supply of rough diamonds is expected to decline.
The company sees potential for stakeholders and retailers’ focus on the importance of diamond provenance to reinforce demand for rough diamonds.
De Beers announced last month that the Tracr™ blockchain platform, which tracks a diamond’s journey from the source, would open to diamond industry participants.
The company said the “immutable data” Tracr provides will underpin consumer confidence in natural diamonds and their provenance.
Editors' Picks
Sponsored by
More on Sourcing
The Latest
Lab-GrownMay 08, 2026
NDC Publicly Criticizes Pandora Over ‘Misleading’ Natural Diamond ClaimsNDC said in an open letter that Pandora’s statements about the carbon footprint of lab grown versus natural diamonds are inaccurate.
TrendsMay 08, 2026
Rihanna Chooses ‘Desert Diamonds’ for 2026 Met GalaShe wore our Piece of the Week, Glenn Spiro’s “Old Moghul Golconda” earrings, featuring fancy brown-yellow diamonds totaling 51.90 carats.
Events & AwardsMay 08, 2026
JA Announces 2026 CASE Award WinnersTwo pieces were named “Best in Show,” one from the retail category and one from the supplier category.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
FinancialsMay 07, 2026
Brilliant Earth Appeals to Higher-Income Shoppers in Q1The jewelry retailer noted resilience among its higher-end customers while demand softened for its lower-priced offerings.
Weekly QuizMay 07, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsMay 07, 2026
‘Spectacular’ Kashmir Sapphire Headlines Heritage Spring Jewelry SaleLed by the 6.59-carat sapphire, the sale garnered $9.7 million, a record total for a Heritage jewelry auction.
MajorsMay 07, 2026
Gannon & Scott Names New Regional Account ExecutiveIn his new role, sales specialist Billy Welshoff will focus on the eastern United States.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
WatchesMay 07, 2026
Chrono24 Names New CEOJosé Gaztelu has been promoted to the role, which has been vacant since last year.
Events & AwardsMay 07, 2026
JA Accepting Applications for 2026 Scholarship ProgramIt has also opened the application period for the Seymour & Evelyn Holtzman Bench Scholarship through June 30.
FinancialsMay 06, 2026
Pandora to Add Carbon Footprint Info to Lab-Grown DiamondsThe company announced the change alongside its Q1 results, which showed that the jewelry brand’s year is off to a shaky start.
MajorsMay 06, 2026
Saks Global Begins Layoffs, Reorganization Plans Closer to ApprovalThe retailer will cut 16 percent of its corporate workforce as part of its plan to exit bankruptcy.
AuctionsMay 06, 2026
Steve McQueen’s Heuer Monaco Watch Heads to Sotheby'sOf the many examples used in the filming of “Le Mans,” this one is believed to have spent the most time on Steve McQueen’s wrist.
EditorsMay 05, 2026
This Ohio Designer’s Jewelry Made It to the Met GalaMegan Piccione dressed Lauren Wasser in layers of diamond jewelry, making her stand out in a crowd that included celebrities like Beyoncé.
SourcingMay 05, 2026
Doug Hucker Returns to His RootsFollowing decades of association leadership, the “semi-retired” colored gemstone expert is turning his focus to gemstone education.
Events & AwardsMay 05, 2026
AMNH to Showcase Famous Jewelry, Trophies in Sports HistoryThe museum’s new exhibition will feature one of Jesse Owen’s Olympic medals, Yogi Berra’s crown, Super Bowl rings, and more.
Events & AwardsMay 05, 2026
JIS Launches Brand Exposure ProgramThe new program provides access to media exposure and editorial opportunities for exhibitors and retailers.
CollectionsMay 04, 2026
Melanie Georgacopoulos Turns Pearls Into Light for ‘Eclipse’ CollectionThe “Eclipse” jewelry collection captures the fleeting moment where light and shadow align though onyx, diamonds, and freshwater pearls.
ColumnistsMay 04, 2026
The Key Mindset for Better Trade Show BuyingBuying discipline at trade shows starts with clarity about your inventory levels, Smith writes.
CrimeMay 04, 2026
Pawn Shop Manager Shot, Killed in FloridaLazaro Rodriguez Vega was murdered inside Cash Out Gold and Silver in Fort Pierce. A 20-year-old man has been charged in the case.
IndependentsMay 04, 2026
Zadok Jewelers, Austin Parks Foundation Support Wildflower PreservationA portion of every engagement ring sold in its Austin showroom will support the care and preservation of Austin’s wildflowers and green spaces.
TechnologyMay 01, 2026
Gemist, Saban Onyx Partner on Retailer-Focused Customization OfferingTheir partnership combines Gemist’s customization technology with Saban Onyx’s U.S.-based manufacturing capabilities.
SurveysMay 01, 2026
Consumer Confidence Inches Up in April Despite Rising Gas PricesRespondents were concerned about the Middle East conflict and how it will impact their finances.
CollectionsMay 01, 2026
A ‘Hidden Garden’ Emerges in Tiffany & Co.’s 2026 Blue BookOur Piece of the Week, the “Butterfly” necklace, showcases a 7.02-carat oval diamond set between diamond, platinum, and 18-karat gold wings.
ColumnistsApr 30, 2026
Peter Smith: A Sleazy Salesman and the Case for Regret Avoidance Smith uses a comment he overheard in the grocery store to remind retailers that their job is to inspire buying behavior, not just sell.
MajorsApr 30, 2026
Claire’s New Summer Campaign Is a Sensory Wonderland for Gen Alpha“A Girl SMR at Claire’s” celebrates girlhood through the five senses with stacked jewelry, slime toys, scented accessories, and ASMR.
AuctionsApr 30, 2026
Vintage Cartier Watch Crashes Through Records, Selling for $2MBelieved to be one of three made in 1987, the Cartier London Crash was hot at the “Shapes of Cartier” sale at Sotheby’s Hong Kong.
