Anglo American Reports First-Half Loss at De Beers

De Beers is expected to post an underlying EBITDA loss for the first half of 2026 after weaker rough-diamond sales in the second quarter weighed on earnings, parent company Anglo American said Thursday in its quarterly production report.

The diamond producer's underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) are forecast to be negative for the six-month period, according to Anglo American, which owns 85% of the company.

Second-quarter consolidated rough-diamond revenue, excluding sales by joint-venture partners, fell 44% year over year to $665 million in the three months ended June 30. Consolidated sales volume declined 11% to 6 million carats, while total sales slipped 7% to 7.1 million carats.

The average consolidated selling price dropped 37% to $110 per carat. De Beers' average price index, which measures like-for-like price movements, decreased 17%. The company held three sights during the quarter, unchanged from the same period last year.

Despite stronger first-quarter sales volumes, first-half revenue trailed the prior-year period as lower prices offset higher volumes. Consolidated revenue for the six months fell 23% to $1.31 billion, while consolidated sales volume rose 13% to 12.4 million carats and total sales volume increased 20% to 14.8 million carats.

Anglo American attributed the weaker revenue to a larger share of lower-value diamonds in the sales mix. The average selling price for the first half declined 32% to $105 per carat, reflecting both the product mix and a 16% drop in De Beers' average rough-price index.

The company noted that, beginning in the first quarter of 2026, the price index incorporated the discounted inventory sales conducted in 2025. It does not include the price reduction introduced at De Beers' July 2026 sight.

"Rough-diamond trading conditions remained challenging in the first half of 2026," Anglo American said, citing geopolitical uncertainty, macroeconomic pressures, and the conflict in the Middle East as factors weighing on economic growth and consumer confidence.

The company also pointed to continued competition from lab-grown diamonds, particularly in lower-value categories, although stronger pricing for higher-value goods helped keep the overall price index relatively stable.

Meanwhile, production increased sharply. Output rose 88% year over year to 7.8 million carats in the second quarter and climbed 46% to 14.9 million carats in the first half, largely due to an easier comparison with 2025, when Botswana's Orapa mine underwent an extended maintenance shutdown. Planned mining of higher-grade ore at the Jwaneng mine in Botswana and the Gahcho Kué mine in Canada also supported production.

Anglo American maintained De Beers' full-year production guidance at 21 million to 26 million carats. The company said a recently announced two-year production pause at the Venetia mine, together with planned maintenance at Orapa and Jwaneng, is expected to offset the strong first-half output. It added that production will continue to be managed in line with market demand.

The report did not comment on recent media reports that Anglo American has identified a consortium led by former De Beers CEO Gareth Penny as its preferred bidder for the diamond business.

Anglo American CEO Duncan Wanblad said the company is continuing the De Beers sale process while implementing cost-cutting measures and reducing capital expenditure to lessen the impact of prolonged weakness in the diamond market.

De Beers recorded an EBITDA loss of $511 million for full-year 2025, compared with a $25 million loss in 2024. In the first half of 2025, the company reported an underlying EBITDA loss of $189 million.