De Beers has reportedly built up its largest stockpile of diamonds since the 2008 financial crisis, with an inventory valued now at roughly US$2 billion, according to the Financial Times.
The outlet quoted De Beers chief executive Al Cook saying it’s been a bad year for rough diamond sales, but he did not provide additional details on its inventory.
The Anglo American- (LSE: AAL) owned diamond miner has faced multiple headwinds in recent years. A slumping Chinese economy, in particular, has been a major drag on demand. The cheaper lab-grown diamonds also add pressure.
In a briefing to Bloomberg last year, Cook said his company has been building on stock on the notion that diamond prices will recover, the it will be able to sell that supply.
At the end of 2024, that hasn’t materialized. The company’s statements show that for the first half of this year, its sales were down about 20% compared to the same time a year ago.
Still, Cook was upbeat about a turnaround as De Beers push plans to go independent and shift its focus from mining to driving marketing and sales. Earlier this year, Anglo American announced plans to spin off the diamond business either through a sale or an initial public offering.
However, a new report from McKinsey gave a less optimistic outlook for diamond miners, suggesting that lab-grown alternatives could take over the market one day.
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