De Beers has "Biggest Stockpile Since 2008"
December 25, 24
(IDEX Online) - De Beers' stockpile of rough diamonds is bigger that at any time since the 2008 financial crisis, according to a Financial Times (FT) report today (25 December).
The troubled miner now has inventory worth a reported $2bn, as a result of weak diamond, especially in China, the lockdown legacy and competition from lab growns.
The FT did not cite an exact source for the figure, but said: "The scale of the stockpile, which has not been previously reported, has hovered around the $2bn mark for much of the year, according to the company."
De Beers saw Q3 revenue slump by over three quarters, down from $899m in 2023 to just $213m.
It held just one sight during the quarter, rather than the usual three, and it faces an uncertain future as parent company Anglo American plans a sell-off or IPO.
First half revenues dropped to $2.2bn, down from $2.8bn year-on-year.
De Beers has reportedly lowered rough prices at its last sight of the year, earlier this month, by as much as 15 per cent in some cases.
It generally uses price cuts only as a last resort, and prefers to offer sight holders the right to refuse or sell back part of their allocation.
It no longer publishes sight revenues, but it is reckoned to have sold no more than $130m at its November sight (average per 2023 sight was over $360m).