In its annual production report, the London-based mining giant, which holds an 85% stake in De Beers, stated that it is “assessing the impact of diamond market conditions and the general fall in demand in China, which is likely to lead to an impairment at the full-year results.” The company anticipates that De Beers’ full-year 2024 EBITDA will be marginally negative.
De Beers, currently valued at $7.6 billion, underwent a $1.6 billion write-down in February 2024. The company’s new valuation will be revealed when Anglo American releases its 2024 financial results on February 20.
Market Dynamics and Challenges
The diamond industry has faced persistent headwinds, with declining demand in key markets like China contributing to a slowdown. Despite being a historic leader in the natural diamond sector, De Beers is grappling with shifting consumer preferences and increased competition from lab-grown diamonds.
Future Outlook
Anglo American’s decision to reassess De Beers’ valuation underscores the broader industry’s need to adapt to evolving market conditions. Analysts suggest that diversification and investment in innovative products could help De Beers regain its competitive edge.
As the diamond market continues to evolve, stakeholders will be closely monitoring De Beers’ strategic moves and Anglo American’s financial performance.
