De Beers Q1 output rises 17 percent amid diamond market headwinds

De Beers pushed more rough diamonds out of the ground in the first quarter, but the market around those stones remained stubbornly soft. Production climbed 17 percent to 7.133 million carats from 6.075 million a year earlier, yet the company still described trading conditions as challenged by lab-grown competition, geopolitical friction and tariffs.

The strongest gains came from the places that matter most to De Beers’ future. Canada surged 163 percent to 1.023 million carats, helped by planned ore release from a new area at the Gahcho Kué mine. South Africa rose 53 percent to 740,000 carats as Venetia benefited from higher underground ore volumes. Botswana, still the company’s largest source, increased 5 percent to 4.814 million carats, mainly on a higher recovered grade at Orapa. Namibia moved the other way, falling 12 percent to 556,000 carats after scheduled maintenance on two vessels at Debmarine Namibia and the decommissioning of two vessels in 2025.

That production mix matters because it reveals a company leaning into supply even as pricing remains under pressure. De Beers said consolidated rough diamond sales revenue reached $648 million from two Sights, up from $520 million a year earlier, but the consolidated average realized price fell 19 percent to $101 per carat. For natural diamonds, that is the number that speaks loudest. More carats leaving the mines do not automatically translate into stronger value if the market cannot absorb them at healthy prices.

The company left its 2026 production guidance unchanged at 21 million to 26 million carats and held unit cost guidance at about $80 per carat, signaling that it is not retreating despite the weak backdrop. Whether that steadiness reads as confidence or as a risk of worsening oversupply will depend on demand in the months ahead. Anglo American, meanwhile, said it remains committed to divesting De Beers and expects to update the market during 2026, adding another layer of uncertainty to a business already balancing inventory, pricing and the slower pulse of diamond demand.