DE BEERS GLOBAL SIGHTHOLDER SALES THE GLOBAL SIGHTHOLDER SALES (GSS) - - PowerPoint PPT Presentation

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DE BEERS GLOBAL SIGHTHOLDER SALES THE GLOBAL SIGHTHOLDER SALES (GSS) - - PowerPoint PPT Presentation

Oct 15, 2023 913 likes •1.01k views

DE BEERS GLOBAL SIGHTHOLDER SALES THE GLOBAL SIGHTHOLDER SALES (GSS) VISIT WHAT YOU WILL SEE TODAY A tour of the worlds leading rough diamond sorting and distribution facility, including visits to key diamond areas: Canadian production

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DE BEERS GLOBAL SIGHTHOLDER SALES

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1 The De Beers Group of Companies

A tour of the world’s leading rough diamond sorting and distribution facility, including visits to key diamond areas:

  • Canadian production sorting
  • ‘TechSort’ (sorting area using De Beers’ proprietary technology)
  • Large stones

We will also provide you with a chance to see our leading synthetic detection equipment in action:

  • DiamondSure
  • DiamondView
  • Automated Melee Screening device (AMS)
  • PhosView

THE GLOBAL SIGHTHOLDER SALES (GSS) VISIT – WHAT YOU WILL SEE TODAY

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2 The De Beers Group of Companies

  • After developing an international network of Diamond Trading

Company (DTC) operations to support producer countries’ beneficiation objectives, GSS relocated to Gaborone in November 2013 as part of the current Botswana Sales Agreement

  • The relocation was delivered ahead of time, within budget and

included the building of a new Sight floor

  • GSS recently celebrated its 30th Sight in Gaborone
  • De Beers delivering increased industry professionalisation through:
  • Improved distribution efficiency
  • Introduction of De Beers’ Best Practice Principles (BPPs) to

govern business ethics

  • Driving greater financial robustness and transparency through

customer financial compliance requirements

BACKGROUND TO GSS

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3 The De Beers Group of Companies

Sorted rough diamonds are sent to GSS after being sorted into +10,000 Price Book Items (PBIs). Role of GSS

  • ‘Aggregation’ (blending together

like-for-like categories):

  • Smooths out peaks and

troughs in mining

  • Wider range of product
  • Enables product consistency
  • Creating ‘boxes’ of products –

these are designed to meet a particular manufacturing approach or downstream market need

  • Managing the global rough

diamond assortment nt and pricing cing

  • Delivering additional paid-for

servic ices es Any boxes purchased by GSS customers (Sightholders and Accredited Buyers) are shipped out to the relevant centre before being manufactured (cut and polished)

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THE ROLE OF GSS

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4 The De Beers Group of Companies

  • Smooths out peaks and

troughs in mining

  • More consistent offering

for more of the production

  • Wider range of product
  • Mitigates volatility
  • 40%
  • 20%

0% 20% 40% 60% 80% 100% Namibia Canada South Africa Botswana Aggregated Mix Indicative 12 month period

Volatil ilit ity in carat deliv liver ery y by prod

  • duc

ucing ing countr ntry

BENEFITS OF AGGREGATION

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5 The De Beers Group of Companies

GSS

(c90% of De Beers sales)

  • Term contract
  • Planned supply of Sight boxes
  • Uniform price, set by De Beers
  • Intellectual property benefits

(Sightholder signature)

Aucti tion

  • n Sales

s (DBAS AS)

(c10% of De Beers sales)

  • No contract
  • Rough diamonds sold via
  • nline auction with limited or

no future supply commitment from De Beers

  • Variable price, set by market
  • Highly innovative business
  • Continuously innovating
  • Experimenting with pilot

projects

INFORMATION FLOW

Sightholders may also bid in the DBAS auctions DBAS auction buyers can build up a track record of demand for De Beers rough

INTEGRATED SALES OPTION

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6 The De Beers Group of Companies

34% 24% 12% 6% 5% 6% 4% 3% 3% 4% India Belgium Botswana South Africa Switzerland Israel Namibia UAE US Other Primary ry Model el

Sightholders*

Dealers 4% Dealers/Preparers 4% Dealers/Cutting & Polishing 17% Dealers/Cutting & Polishing/Jewellery Manufacturing 9% Cutting & Polishing 15% Cutting & Polishing/Jewellery Manufacturing 37% Cutting & Polishing/Jewellery Manufacturing /Retail 4% Retailers 11%

Rough Dealing Preparing Cutting & Polishing Polished Wholesale Jewellery Manufacturing Jewellery Wholesale Retail

GSS rough gh sale les by clie ient nt locat atio ion n 2015, 5, by value ue

* % based on number of customers

GSS CUSTOMERS OPERATE IN ALL STAGES OF THE DIAMOND VALUE CHAIN