De Beers Reports 17% Production Increase Amidst Challenging Market Conditions

Production Surges, Driven by South Africa and Canada

De Beers Group announced a significant 17 percent increase in rough diamond production for the first quarter of 2026, reaching 7.1 million carats. This rise was primarily fueled by enhanced output from its operations in South Africa and Canada. Despite this operational success, the company continues to navigate a market characterized by competition from lab-grown diamonds, declining prices for smaller stones, and geopolitical pressures.

The company's parent, Anglo American, confirmed that the sale process for De Beers is progressing, though no further details were provided.

Regional Performance Highlights

Key mining sites contributed to the overall production increase:

• South Africa: Production at the Venetia mine saw a substantial 53 percent jump, yielding 740,000 carats. This improvement is attributed to increased ore processing from the mine's underground operations.
• Canada: The Gahcho Kué mine more than doubled its output, producing 1 million carats. This surge is due to a planned ore release from a newly developed section of the mine.
• Botswana: Remaining De Beers' largest production base, Botswana contributed 4.8 million carats, a 5 percent increase year-over-year. This accounted for approximately 68 percent of the company's total Q1 production. Higher ore grades at the Orapa mine supported this growth.
• Namibia: In contrast, production decreased by 12 percent to 556,000 carats. This decline is a result of scheduled maintenance on two marine mining vessels and the removal of two other vessels from service in the previous year.

Sales and Pricing Trends

While production volume increased, the diamond market faced significant price pressures. De Beers reported an increase in rough diamond sales in Q1, with consolidated revenue reaching $648 million from 6.4 million carats sold. This represents a notable rise from the $520 million generated from 4.2 million carats in Q1 2025.

However, the average realized price per carat saw a significant decline of 19 percent, falling to $101 per carat. This decrease was driven by a 17 percent drop in the average rough price index. De Beers attributed part of this price compression to 'stock rebalancing,' a strategy involving the sale of less desirable rough diamonds at discounted prices to manage inventory levels.

Market Headwinds and Full-Year Outlook

De Beers acknowledged that the market continues to be