Anglo American Plc · LSE:AAL
Anglo American — De Beers — Corporate Update (November 2016)
7 slides from Anglo American's corporate update, November 2016
Slide 1: De Beers Global Sightholder Sales
DE BEERS GLOBAL SIGHTHOLDER SALES
Slide 2: The GSS Visit – What You Will See Today
THE GLOBAL SIGHTHOLDER SALES (GSS) VISIT – WHAT YOU WILL SEE TODAY 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
Slide 3: Background to GSS
BACKGROUND TO GSS • 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,
Slide 4: The Role of GSS
THE ROLE OF GSS Gahcho Kué GSS CUSTOMER Victor Role of GSS Any boxes purchased by GSS • ‘Aggregation’ (blending together customers (Sightholders and like-for-like categories): Accredited Buyers) are shipped out Debmarine Namibia • Smooths out peaks and to the relevant centre before being Namibia DTC
Slide 5: Benefits of Aggregation
BENEFITS OF AGGREGATION Volatility in carat delivery by producing country • Smooths out peaks and 100% troughs in mining 80% • More consistent offering 60% for more of the Namibia production 40% Canada South Africa • Wider range of product 20% Botswana Aggregated Mix 0% • Mitigates volatility -20% -
Slide 6: Integrated Sales Option
INTEGRATED SALES OPTION GSS INFORMATION Auction Sales (DBAS) (c90% of De Beers sales) FLOW (c10% of De Beers sales) • Term contract • No contract • Planned supply of Sight boxes • Rough diamonds sold via • Uniform price, set by De Beers Sightholders may also bid in online auction with limited or • I
Slide 7: GSS Customers Operate in All Stages of the Diamond Value Chain
GSS CUSTOMERS OPERATE IN ALL STAGES OF THE DIAMOND VALUE CHAIN GSS rough sales by client location 2015, by value Rough Cutting & Polished Jewellery Jewellery 3% 4% Primary Model Dealing Preparing Polishing Wholesale Manufacturing Wholesale Retail Sightholders* 3% 4% Dealers 4% 6% 34% Dealers/Prepare