De Beers increased its capital expenditure in Namibia to N$754 million (U$41 million) in 2024, up from N$643 million (U$35 million) the previous year, even as diamond production and financial performance declined.
Namibia’s total diamond production in 2024, dropped by 4% to 2.23 million carats, compared to 2.33 million carats in 2023. The average price per carat fell to U$426 from U$515, while unit costs increased to U$295 from U$246.
The country’s underlying EBITDA declined to U$121 million (2023: U$159 million), and EBIT fell to U$82 million (2023: U$123 million).
The decline in Namibia’s overall output was driven by a 13% decrease in Debmarine Namibia’s production, which fell to 1.625 million carats. However, Namdeb’s land-based operations recorded a 30% increase in production to 609,000 carats, contributing to a 3% rise in Namibia’s fourth-quarter output.
The increase in Namibia’s capital expenditure aligns with De Beers’ broader strategy of cost optimisation.
Globally, De Beers cut its total capital expenditure by 14% to U$536 million, with spending adjustments including the rephasing of the Venetia underground expansion and rationalisation of other projects.
Amid difficult trading conditions, De Beers saw a 23% decline in overall revenue to U$3.3 billion, while rough diamond sales volumes dropped by 28% to 17.9 million carats.
Despite these challenges, the company continued investing in life-extension projects, with Namdeb’s increased land-based production helping to offset some losses in offshore output.
