De Beers Narrows Losses on Price Stability and Cost-Cutting Measures
De Beers Cuts First-Half Losses as Stable Rough Prices and Cost Savings Boost Performance
De Beers narrowed its losses in the first half of 2026 as more stable rough-diamond prices and aggressive cost-cutting measures improved profitability despite weaker sales.
The miner reported an underlying loss of $188 million, down 23% from a year earlier, according to parent company Anglo American. Earnings before interest, taxes, depreciation and amortization (EBITDA) showed a loss of $113 million, improving 40% from $189 million in the first half of 2025.
The stronger performance reflected a shift from trading losses a year ago—when falling rough prices forced the company to sell inventory at reduced margins—to trading profits in the first six months of 2026. Anglo American said relatively stable pricing during the period supported healthier margins and more consistent trading results.
Although De Beers' rough-price index was 16% lower year on year, it remained largely unchanged during the first half, moving from 68 in the first quarter to 69 in the second quarter (based on an index of 100 in December 2006). The stability helped the company's trading business avoid losses caused by buying rough at higher prices and selling after subsequent price declines.
"The stability in the rough-price index across the first half of 2026 supported profitability, as it meant we were not purchasing at a higher price but then selling at a lower price due to a declining price index," a De Beers spokesperson told Rapaport News.
The trading division posted underlying EBITDA of $30 million, reversing a $260 million loss recorded a year earlier. Its EBITDA margin improved to 2% from negative 16%, reflecting stronger trading conditions alongside operating cost improvements.
Across the business, unit costs fell 26% to $64 per carat, driven by lower operating expenses and increased production of higher-grade ore, particularly from the Gahcho Kué mine in Canada. Capital expenditure declined 33% to $115 million as the company continued cash-preservation initiatives.
Revenue for the six-month period dropped 19% to $1.58 billion, while the average selling price fell 32% to $105 per carat, highlighting continued weakness in diamond demand.
Earlier this month, De Beers unveiled additional cost-cutting plans ahead of its planned sale, including a two-year production pause at its Venetia mine in South Africa. Since 2024, the company has reduced annual overhead costs by more than $100 million.
Meanwhile, Anglo American continues efforts to sell its 85% stake in De Beers. A consortium led by former De Beers CEO Gareth Penny is reportedly the leading bidder, with Bloomberg reporting the deal under discussion values the business at around $1 billion—well below the $12.75 billion Anglo American paid to acquire full ownership from the Oppenheimer family in 2011.
Anglo American CEO Duncan Wanblad said the company is advancing the sale process while pursuing further cost reductions and lower capital spending to lessen the impact of prolonged weakness in the global diamond market
