Work hard and you will find success

Eduard Utkin, Director General of the “Jewellers’ Guild of Russia” Association, expert of the RF Chamber of Commerce and Industry’s Committee on Precious Metals and Precious Stones, told R&P about implementing the SIIS PMPS (State Integrated Information...

Yesterday

GOLDNET.MARKET - “We want and are working to provide business with the opportunity to develop a lot of activity areas”

Today, almost all jewellery companies have their own wholesale websites, online stores, and social media pages. But a year ago, GOLDNET.MARKET, the first jewellery wholesale marketplace appeared in Russia, a new effective tool for the jewellery market...

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Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

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Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

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There is a significant need for smart and technological financial solutions in the diamond industry

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Diamond industry derives practically all its value from consumers’ demand for diamond jewellery – Anglo’s seminar on De Beers

06 november 2014
Anglo American offered an opportunity to have an in-depth look into the diamond business of De Beers at the analyst and investor seminar held in London last Monday. The presentation was given by a joint management team headed by Mark Cutifani, Chief Executive of Anglo American and Chairman of De Beers, who provided a broad outlook for the company and the diamond business contributing to further transparency in this field.
Mark Cutifani, Chief Executive of Anglo American, said: “De Beers is an exciting business, not least due to its unique position in the market and the industry, but also the special nature of its product. Anglo American aims to be the diversified mining company and De Beers plays a major role in our diversification – adding to our later cycle exposure while being a world class business with highly attractive supply and demand dynamics.” Cutifani also made it a point that so far De Beers was making good progress in terms of production and sales.
Philippe Mellier, Chief Executive of De Beers, added: “The diamond industry derives practically all its value fr om consumers’ demand for diamond jewellery – and this demand continues to grow globally. This, coupled with cost competitive assets with long mine lives and the strength of our partnerships with host governments, forms a compelling proposition and keeps us well positioned for growth.”
Mellier said that in his view the diamond industry had attractive supply-demand fundamentals, which was proved by the recent strong performance of De Beers generating a cash flow reaching US $ 1 billion in the last 18 months.
In the opinion of Bruce Cleaver, Executive Head of Strategy at De Beers, “unlike demand for precious metals the only material driver of value for diamonds is end-consumer demand for jewellery.” He noted that total consumer demand for diamonds in 2013 hit US$ 25 billion, wh ere the United States had a 40-percent share followed by China (16%) and India (8%).
According to the presentation, De Beers accounted for 33% of the world’s rough diamond production in 2013 in terms of value, while ALROSA’s share was 26% out of the total global rough output value of about $ 18 billion. Cleaver believes that rough supplies will start dwindling by 2020, while demand for diamonds will continue to grow.
Speaking on the downstream activities of De Beers, Mellier said that his company was committed to branding and that branded diamond jewelry was growing exponentially. He expressed his conviction that diamond brands promoted through Forevermark and De Beers Jewellers were important downstream businesses for the mining company.