2. 1The 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
3. 2The 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
4. 3The 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 and pricing
• Delivering additional paid-for
services
Any boxes purchased by GSS
customers (Sightholders and
Accredited Buyers) are shipped out
to the relevant centre before being
manufactured (cut and polished)Namibia DTC
Debmarine Namibia
Namdeb
Orapa
Jwaneng
De Beers
Consolidated Mines
Victor
Gahcho Kué
DTC Botswana
De Beers Sightholder
Sales South Africa
GSS CUSTOMER
THE ROLE OF GSS
5. 4The 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
Volatility in carat delivery by producing country
BENEFITS OF AGGREGATION
6. 5The 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)
Auction Sales (DBAS)
(c10% of De Beers sales)
• No contract
• Rough diamonds sold via
online 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
7. 6The 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 Model 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 sales by client location 2015, by value
* % based on number of customers
GSS CUSTOMERS OPERATE IN ALL STAGES OF THE DIAMOND VALUE CHAIN