De Beers, the iconic diamond miner majority-owned by Anglo American, posted a striking 88% increase in first-quarter production compared to the last quarter of 2025, driven by planned ore releases and higher underground volumes. Yet, the company cautioned that the industry continues to grapple with difficult trading conditions and falling prices.
In its Production Report for the First Quarter of 2026, released April 28, De Beers announced total carats recovered reached 7.133 million, marking a 17% rise from 6.075 million carats in the same quarter last year and an 88% jump from 3.785 million carats in Q4 2025. Canada led the rebound with production soaring 163% year-on-year to 1.023 million carats. “Planned ore release in Gahcho Kué from a new area of the mine. South Africa’s Venetia mine also shone, posting a 53% increase to 740,000 carats largely as a result of processing higher volumes of underground ore,” the report stated.
Botswana, De Beers’ largest source, delivered 4.814 million carats, up 5% from Q1 2025 and a remarkable 156% sequential increase, driven by higher recovered grade at Orapa. Namibia, however, fell short with a 12% decline to 556,000 carats, attributed to scheduled maintenance on two vessels at Debmarine Namibia and the decommissioning of two vessels in 2025.
Despite the production gains, the trading environment remained fraught. “Rough diamond trading conditions continued to be challenged due to ongoing industry, geopolitical and tariff headwinds,” De Beers said. Consolidated rough diamond sales revenue for two Sights in Q1 2026 stood at $648 million, up from $520 million a year earlier, but the average realized price plunged 19% to $101 per carat. The company attributed the drop primarily to “a 17% decrease in the average rough price index” and a sales mix skewed toward lower-value goods.
Anglo American reaffirmed its commitment to exiting the diamond sector. “Anglo American is committed to divesting De Beers and we continue to progress a formal sale process and expect to provide an update through the course of 2026,” the report noted. Full-year production guidance remains steady at 21 to 26 million carats, with unit costs forecast around $80 per carat. Investors remain cautious as supply growth outpaces demand recovery.
Yet beneath the headline surge, De Beers faces a strategic dilemma that threatens its long-standing market dominance. The 88% quarter-on-quarter jump in carats recovered, fueled by planned ore releases in Canada and increased underground volumes in South Africa, looks impressive on paper but clashes with a trading environment marked by weak demand, geopolitical tensions, and tariff uncertainty.
While supply rose to 7.1 million carats, the average realized price collapsed by 19% to $101 per carat, and the rough price index fell 17% as buyers shifted toward lower-value stones. This suggests De Beers is prioritizing volume over value, effectively flooding a market reluctant to pay for premium diamonds. Meanwhile, its Botswana operations, the traditional crown jewel, managed only a modest 5% production increase, while Namibia’s output dropped 12% due to vessel maintenance and decommissioning, exposing operational vulnerabilities in key regions.
The company’s claim of monitoring trading conditions to align output with demand rings hollow when production guidance remains unchanged. Anglo American’s ongoing push to divest De Beers adds further uncertainty, as potential buyers are likely to discount a business unable to protect pricing power while expanding volume. Rather than defending its historic role as curator of scarcity and desire, De Beers risks repositioning itself as a commoditized bulk miner, a perilous shift for a brand built on the illusion of rarity.