News Alert! - February 2025
February 2025 Alert: Why Sell De Beers?
When Anglo American purchased controlling interest in De Beers from the Oppenheimer estate in 2011, its value was estimated at over 13 billion. After several devaluations, the most recent being on February 20th, the current value of De Beers sits at 4.1 billion.
Anglo is a huge corporate conglomerate that answers to shareholders. It consistently over sells rough, and pressures obliged sightholders to over-stock. The result is repeated backups in the diamond pipeline leading to supply reductions and eventually price depreciation.
The weakness of the diamond market is a direct result of Anglos’ mismanagement. Their own devaluation of De Beers is justified and facilitates the company’s sale.
The diamond industry will benefit from a buyer with a completely different management style.
De Beers is holding close to two billion dollars in rough diamonds. When their rough diamond stockpile is deducted from their current 4.1 billion valuation, it leaves the mines and retail assets value at 2.1 billion.
It appears to be a good time for a capable purchaser to step forward.
Mel Moss
