Anglo Slashes De Beers' Value from $4.1bn to $2.3bn
February 23, 26
(IDEX Online) - Mining giant Anglo American has almost halved the book value of De Beers to $2.3bn, as the ailing diamond miner reported losses of $511m for 2025 (from $25m in 2024).
Anglo blamed "ongoing challenging rough diamond trading conditions" as well as a lower average rough price index and stock rebalancing initiatives.
It's the third time in three years that Anglo has taken a pre-tax impairment on Beers. The company's book value was $9.2bn in 2023. This latest cut takes it down from $4.1bn to $2.3bn.
De Beers' production for 2025 fell by 12% to 21.6m carats, according to Anglo's Year End Financial Report, published on 19 February. Sales volumes increased 17% to 20.9m carats, as average per carat prices fell by 7 per cent from $152 to $142. Total revenue increased 6% to $3.5bn but underlying EBITDA slumped from $25m to $511m.
Stock rebalancing initiatives forced sales of high-cost inventory at sharply lower prices, generating $424m in trading losses, exacerbated by persistent weak demand for smaller/lower-quality diamonds.
US tariffs on Indian exports and rising lab-grown diamond competition also impacted natural diamond sales.
Duncan Wanblad, Anglo's CEO, (pictured) spoke of Anglo's plans to sell off De Beers in an earnings call.
"We have now a very well progressed and responsible exit, in the advanced stages of discussions with a select group of interested parties," he said.
He also indicated, for the first time, the sale might take place in stages. "There is a possibility that our share will be sold in three parts, potentially, or two parts, potentially," he said. "That depends on where we get to in the negotiation in the next few weeks."