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.
More on Sourcing
The Latest
FinancialsMar 20, 2026
Macy’s Turnaround Plans Shows Promise, Boosted by Bloomingdale’sPlus, why Saks Global’s bankruptcy may have given Bloomingdale’s an edge.
AuctionsMar 20, 2026
Sotheby's, De Beers Unveil ‘Jwaneng 28.88’ DiamondThe flawless, Type IIa stone is estimated to achieve up to $2.8 million at the auction house’s high jewelry sale in April.
TrendsMar 20, 2026
‘Frankenstein’ Costume Designer Is Bejeweled In Brooches for Oscars WinCostume designer Kate Hawley wore three archival Tiffany & Co. brooches, our Pieces of the Week, while accepting her first Oscar.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
FinancialsMar 19, 2026
Signet Jewelers to Close 100 Stores, Shutter James Allen BannerThe jewelry retailer announced changes to its store network and brand portfolio during its fourth-quarter earnings call.
Weekly QuizMar 19, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SurveysMar 19, 2026
NRF Forecasts 4% Retail Sales Growth in 2026From a weaker labor market to inflation, NRF Chief Economist Mark Mathews gave insight on what retailers can expect this year.
AuctionsMar 19, 2026
26-Carat Diamond Tops $1M at AuctionThe historic stone, which sold at Elmwood’s in London, is the largest white diamond to be offered on the U.K. market in more than a decade.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
Events & AwardsMar 19, 2026
JCK Rocks To Ride With NellyThree-time Grammy award-winning artist Nelly is set to perform at the annual event at Tao Beach in Las Vegas on May 31.
AuctionsMar 18, 2026
Collection of the ‘Severely Beautiful’ Lady Wardington Fetches $161KThe model and fashion editor’s gold evening bags were the top lots at the London sale, going for more than $25,000 each.
PodcastsMar 18, 2026
Episode 3: An Interview With Jewelry Designer Johnny NelsonFresh off winning the David Yurman Gem Awards Grant, Nelson discusses the ring that launched his career and his plans for the future.
MajorsMar 18, 2026
Stuller Releases New Edition of Jewelry Education Book“The Basics of Jewelry” has been updated to include modern topics and visuals.
Events & AwardsMar 17, 2026
The Best Moments From the 2026 Gem Awards Held just before the Oscars, the jewelry industry’s big awards show had its share of standout jewelry, gowns, and acceptance speeches.
TrendsMar 17, 2026
Natalie Portman Is Tiffany & Co.’s New AmbassadorThe Academy Award-winning actress stars in Tiffany & Co.’s latest commercial, which debuted Sunday night during the Oscars.
MajorsMar 17, 2026
Kering Establishes Jewelry Division, Appoints CEOThe organizational change follows Kering’s promise of a transformation after declining sales in 2025.
EditorsMar 16, 2026
2026 Oscars Jewelry: One Necklace After AnotherNatalie Francisco rounds up the top Oscars jewels, including Rose Byrne’s Taffin necklace with a more than 20-carat yellow-brown diamond.
WatchesMar 16, 2026
TAG Heuer Has a New CEOBéatrice Goasglas has been with TAG Heuer since 2018. She is the first woman to head the 166-year-old, LVMH-owned watch brand.
IndependentsMar 16, 2026
Ben Bridge Debuts New Honolulu BoutiqueThe store features the first in-store build for the jeweler’s in-house “Bella Ponte” bridal brand.
AuctionsMar 16, 2026
Bonhams Paris To Offer Antique, Signed Jewels The live fine jewelry auction will take place later this week, showcasing antique pieces, rare gemstones, and signed jewels.
CollectionsMar 13, 2026
A Trio of Jewels from the 3 Gem Award Nominees for Jewelry DesignOur Pieces of the Week honor the 2026 nominees for the Gem Award for Jewelry Design, Silvia Furmanovich, Cece Fein-Hughes, and Catherine Sarr.
WatchesMar 13, 2026
Citizen, Vera Wang to Launch Watch CollectionThe 24-piece watch collection is set to debut in spring 2027.
SourcingMar 13, 2026
Andrea Pooler Joins Third-Generation Diamond Company as COO Pooler, who has more than 25 years’ experience in jewelry, is now chief operating officer of Modani Jewels, Soham Diamonds, and SNJ Creations.
MajorsMar 13, 2026
24 Karat Club of New York’s Banquet to Return to Waldorf AstoriaThe reopening of the Waldorf Astoria means a homecoming for the industry group’s annual event, which will take place Saturday.
CollectionsMar 12, 2026
Jessica McCormack Sends Gold, Gemstones Into ‘Orbit’McCormack looked to the 19th century’s “golden age” of astronomy when designing her new celestial-themed collection.
Events & AwardsMar 12, 2026
Johnny Nelson Wins David Yurman Gem Awards GrantNelson will be honored as the inaugural grant winner at the Gem Awards gala on Friday.
TechnologyMar 12, 2026
Caratwise Launches, Names Former Signet Exec CEO The new smart design software allows jewelers to configure, price, and confirm a custom engagement ring in real time for in-store customers.
SourcingMar 12, 2026
Grandview Klein Opens New Factory in South Africa The 10,000-square-foot diamond manufacturing facility officially opened in late February and employs 50 people.
