De Beers production declines 3% in Q4 but guidance remains unchanged
Production In South Africa also decreased by 54% to 0.4 million carats, due to the planned end of Venetia's open pit operations in December 2022
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De Beers’ rough diamond production has decreased by 3% to 7.9 million carats in Q4 2023, primarily due to the planned reduction in South Africa as Venetia transitions to underground operations, partly offset by higher production from Botswana.
Despite this, the group stated that production guidance for 2024 is unchanged at 29-32 million carats (100% basis). However, it will assess options to reduce production in response to prevailing market conditions.
In Botswana, production increased by 6% to 6.1 million carats, principally driven by increased plant production at Orapa due to planned lower maintenance.
However, production in Namibia decreased by 4% to 0.6 million carats, due to marginally lower grades at the land operations.
Production In South Africa also decreased by 54% to 0.4 million carats, due to the planned end of Venetia’s open pit operations in December 2022.
Venetia will continue to process lower grade surface stockpiles as the underground operations ramp-up production over the next few years.
Additionally, production in Canada decreased by 3% to 0.8 million carats, due to planned treatment of lower grade ore.
De Beers offered full flexibility for rough diamond allocations in Sights 9 and 10, as Sightholders continued to take a cautious approach to their purchasing during the quarter as a result of the prevailing market conditions and extended cutting and polishing factory closures in India; this followed a two month voluntary import moratorium on rough diamonds into India during the period.
Consequently, rough diamond sales totalled 2.7 million carats (2.7 million carats on a consolidated basis) from two Sights, compared with 7.3 million carats (6.6 million carats on a consolidated basis) from two Sights in Q4 2022, and 7.4 million carats (6.7 million carats on a consolidated basis) from three Sights in Q3 2023.
The full year consolidated average realised price decreased by 25% to $147/ct (£116.6) compared with $197/ct (£156.3) in 2022, reflecting a larger proportion of lower value rough diamonds being sold, as well as a 6% decrease in the average rough price index.
Looking ahead, the group also stated that unit cost guidance for 2024 is c.$80/ct (£63.4).
