Sales channels will continue to evolve
In rough diamond sales, there are significant benefits to being a scale producer and supplier. The various mines offer quite different production profiles, and production fluctuates in the quantity, size and quality of diamonds. This means that a company’s ability to offer a consistent supply of gems is strengthened by operating several mines. This kind of offering attracts the best diamantaires and also allows for a steadier cash flow for the company.
Rough diamond sales channels will continue to evolve as producers strive to maximise value creation for their production. De Beers is in the process of redesigning its distribution system. The company remains committed to its model of term contract sales to Sightholders, to which the company will continue to allocate the majority of its supply. However, in April 2015, it will introduce a new category of rough diamond customer: the Accredited Buyer. An Accredited Buyer will not be supplied by way of a term contract, but will be eligible to purchase rough diamonds not already committed for sale by way of term contracts. Over time, Accredited Buyers that demonstrate sufficient demand for De Beers’ goods will be eligible to apply for Sightholder status.