Sourcing

Anglo Writes Down Value of De Beers by $2.9B

SourcingFeb 20, 2025

Anglo Writes Down Value of De Beers by $2.9B

As anticipated, Anglo took another impairment charge on the diamond miner and marketer, which saw revenue sink 23 percent in 2024.

A polished diamond in tweezers
After taking a $1.6 billion impairment charge on De Beers Group last year, parent company Anglo American has written down the value of the diamond miner and marketer by another $2.9 billion. The move comes amid a challenging time for De Beers and the natural diamond industry. (©De Beers Group/Photo credit: Ben Perry @Armoury Films)
London—Anglo American has written down the value of De Beers Group for the second year in a row, taking a $2.9 billion impairment charge on the business that reflects “further near-term adverse macro-economic conditions and industry-specific challenges.” 

“The work to separate De Beers is well under way, with action taken to strengthen cash flow in the near term and position De Beers for long-term success and value realization,” Anglo Chief Executive Duncan Wanblad said on Thursday.

“Given prevailing diamond market conditions, we have reduced our carrying value of De Beers by $2.9 billion.”

Anglo confirmed last May that it was looking to sell De Beers as part of a broader strategy to streamline its portfolio and position Anglo as a major player in “green” energy solutions. 

In an interview with National Jeweler in Las Vegas later that month, De Beers Group CEO Al Cook said there has been an expectation that Anglo and De Beers would go their separate ways for about 18 months before Anglo publicly confirmed that it was looking to sell De Beers. 

He said at that time that Anglo had set out two options for offloading the De Beers unit, a demerger or a divestment, and that the separation would take 12 to 18 months, or possibly more. 

 Related stories will be right here … 

The writedown came as Anglo reported its full-year results for 2024. 

De Beers’ revenue fell 23 percent year-over-year to $3.29 billion ($4.28  billion in 2023), primarily due to a 25 percent decline in rough diamond sales. Rough sales totaled $2.7 billion in 2024, compared with $3.6 billion in 2023.  

Total rough diamond sales volumes fell 28 percent to 17.9 million carats compared with 24.7 million carats in 2023. 

A decrease in consumer demand in China—once the world’s second largest market for diamond jewelry—and competition from lab-grown diamonds have hurt the natural diamond industry.

According to De Beers, global consumer demand for diamond jewelry shrunk by 3-4 percent year-over-year in 2024.

In the United States, the world’s largest market for diamond jewelry, demand was down 2 percent year-over-year, though De Beers said Thursday there are signs that lab-grown diamonds’ impact on the market has peaked as retail prices fall and retailers’ margins shrink. 

It said, “Falling lab-grown diamond retail prices have meant jewelry retailer financial incentives are increasingly shifting in favor of natural diamond jewelry.

“While a proportion of natural diamond demand continues to be affected in the near term by lab-grown diamonds as a result of prevailing retail margins, such margins are expected to be unsustainable in light of increasing lab-grown diamond supply volumes, greater levels of competition, and growing consumer awareness of lab-grown diamond price trends.”

As previously reported, De Beers’ production was down 22 percent year-over-year in 2024.

Anglo and De Beers have cut De Beers’ production guidance for 2025 by a third. It is now forecast to mine 20-23 million carats of diamonds this year, down from its previous guidance of 30-33 million carats.

De Beers said Thursday that because of market conditions, the underground expansion at Venetia, its only remaining diamond mine in South Africa, is “undergoing a rescoping exercise.”

Production guidance for 2026 also has been reduced, though it is expected to increase in anticipation of market recovery.

De Beers is forecast to mine 32-35 million carats of diamonds in 2026 (down from previous guidance of 26-29 million carats), with production expected to increase again in 2027 to 28-31 million carats.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Weekly QuizMar 27, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

Bailey’s Fine Jewelry storefront
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent Jeweler

The family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Bulova 150 Art Deco Miss America Watch, 150 Art Deco Pocket Watch
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco Watches

The “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.

Alex Wellen
MajorsMar 26, 2025
QVC Group Appoints New President

Alex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.

Jewelers of America’s new logo
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative

The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.

Christies regent kashmir sapphire and regal Burmese ruby
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat Ruby

The ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.

Diamond earrings held in gloved hand
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft Recovered

The two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.

Emmanuel Raheb CEO of Smart Age Solutions
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More Jewelry

The time to start experimenting with video content is now, writes columnist Emmanuel Raheb.

Pomellato Nudo High Jewelry Campaign
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic Design

From striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.

Jamie Singleton, Bill Brace, Rebecca Wooters, Bill Luth
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid Turnaround

The jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.

Sothebys Watchcheck
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair Services

The auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.

Swarovski lab-grown diamond Galaxy earrings
FinancialsMar 21, 2025
Swarovski Says Its Lab-Grown Diamond Sales Doubled in 2024

The company also noted record sales in the United States and a strong performance in its jewelry category.

Branko Gems
SourcingMar 21, 2025
BrankoGems To Hold Conference in Montana

The event, set for June 13-15, will feature educational presentations and guided visits to the state’s sapphire mines.

Til Death Ring by Marrow Fine
TrendsMar 21, 2025
Piece of the Week: Marrow Fine’s ‘Til Death’ Ring

After the black enamel band became a best-seller for the brand, it has now launched an enamel ring personalization program.

Korman Fine Jewelry Austin store
IndependentsMar 20, 2025
Korman Fine Jewelry’s New Store Is Double the Size

The Austin, Texas, jeweler’s new 11,000-square-foot store is set to open this summer.

JCK Rocks 2025
Events & AwardsMar 20, 2025
JCK Rocks to Feature Snoop Dogg, Jason Derulo

The rapper and singer-songwriter will perform at Tao Beach on June 8.

Conversations with Chris Ploof YouTube Video Series
TechnologyMar 20, 2025
Chris Ploof, Severine Ferrari Launch YouTube Video Series

“Conversations with Chris Ploof” covers tips for men buying wedding bands, behind-the-scenes footage of Ploof in his studio, and more.

Limelight Lab Grown Diamond store in India
Lab-GrownMar 20, 2025
Beyond Jewelry: Possibilities in the Lab-Grown Diamond Sector

As lab-grown diamond brands pop up across India, academics are researching how to grow demand outside of the jewelry industry.

Lab-grown diamond engagement ring
FinancialsMar 19, 2025
Signet Jewelers to Close Stores, Cut Staff Amid Declining Sales

The moves are part of the retailer’s new turnaround plan, “Grow Brand Love,” which also includes emphasizing brand loyalty over store banners.

Zoë Kravitz in Rush Hour Collection
CollectionsMar 19, 2025
Jessica McCormack’s New Collection Elevates Office Wear

The “Rush Hour” campaign stars Zoë Kravitz in bold, wearable pieces designed to make a statement in the workplace.

Gallet Flying Officer watch
WatchesMar 19, 2025
Breitling Acquires Another Watch Brand From the 1800s

Breitling is reviving Gallet, which was founded in 1826 and is known for making watches used in the early days of long-distance travel.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy