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DE BEERS GLOBAL SIGHTHOLDER SALES
1The De Beers Group of Companies
A tour of the world’s leading rough diamond sorting and distribution facility,
including ...
2The De Beers Group of Companies
• After developing an international network of Diamond Trading
Company (DTC) operations t...
3The De Beers Group of Companies
Sorted rough diamonds are sent to GSS
after being sorted into +10,000 Price
Book Items (P...
4The De Beers Group of Companies
• Smooths out peaks and
troughs in mining
• More consistent offering
for more of the
prod...
5The De Beers Group of Companies
GSS
(c90% of De Beers sales)
• Term contract
• Planned supply of Sight boxes
• Uniform pr...
6The De Beers Group of Companies
34%
24%
12%
6%
5%
6%
4%
3%
3% 4%
India Belgium Botswana
South Africa Switzerland Israel
N...
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De Beers global sightholder sales

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The financial community visits key assets in Anglo American’s De Beers and Platinum businesses, showcasing two of the Group’s world class assets.

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De Beers global sightholder sales

  1. 1. DE BEERS GLOBAL SIGHTHOLDER SALES
  2. 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. 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. 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. 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. 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. 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

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