De Beers Namibia has reported a drop in earnings for the first half of 2025, with underlying operating profit falling to N$1.09 billion (US$58 million), down from N$1.24 billion (US$66 million) in the same period last year.
According to the company’s latest financial results, underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached N$1.47 billion (US$78 million), slightly down from N$1.58 billion (US$84 million).
“Underlying EBITDA fell from $84 million to $78 million, while underlying EBIT dropped from $66 million to $58 million,” the report stated.
The fall in profitability was largely attributed to a 22% decrease in the average price per carat, which declined from N$7,886 (US$435) to N$6,164 (US$340).
Despite a difficult global diamond market, production volumes in Namibia held steady. The group recorded 1.166 million carats in output, marginally below the 1.194 million carats produced in the first half of 2024.
“Production in Namibia was flat at 1.2 million carats (30 June 2024: 1.2 million carats), as planned actions to lower production at Debmarine Namibia were offset by planned higher grade mining and better recoveries at Namdeb,” the report noted.
This contrasts with De Beers Group’s overall performance, which saw a 23% decline in production due to weak demand and high inventory levels in the midstream segment.
Meanwhile, capital expenditure in Namibia was cut significantly, from N$326 million (US$18 million) to N$126 million (US$7 million), reflecting the group’s ongoing cash preservation strategy.
Operational efficiency also improved during the period, with unit costs dropping from N$4,895 (US$270) per carat to N$3,898 (US$215) per carat.
