GLOSSARY
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4Cs

The four main characteristics that define the quality of a polished diamond: carat, colour, cut and clarity

B

BENEFICIATION

Creation of activities beyond mining the natural resource in producing countries. For diamonds, this usually means sorting, valuing, selling and manufacturing

C

CAGR

Compound annual growth rate, a year-on-year percentage growth rate over a specified period of time

CARAT

A unit of mass for diamonds and gemstones, standardised worldwide in the 20th century at exactly one-fifth of a gram (the metric carat). One of the 4Cs

CARATS PER PIECE

The number of carats in an individual piece of jewellery

COLOURLESS DIAMOND

A diamond’s colour is a result of its composition: colourless diamonds allow more light to pass through than a coloured diamond

CONFLICT DIAMONDS

Mined rough diamonds used to fund rebel and revolutionary activities against legitimate and internationally recognised governments

CRATON

An old and stable part of the continental lithosphere that may contain diamonds. Having often survived cycles of merging and rifting of continents, cratons are generally found in the interiors of tectonic plates

CUTTING AND POLISHING

The process of preparing a rough gem-quality diamond so that it can be used in the manufacture of jewellery

CVD

Chemical Vapour Deposition: a process to create synthetic diamonds

CVD REACTOR

A machine designed to create synthetic diamonds using the CVD process

D

DENSE MEDIA CYCLONE

A device used in the recovery plant to separate the diamondiferous material from waste

DIAMOND

A precious stone consisting of a clear and typically colourless crystalline form of pure carbon, the hardest naturally occurring substance

DIAMANTAIRES

The French term ‘diamantaire’ (‘diamantair’ in Flemish) is used in the diamond industry to denote a person who possesses diamond-related skills

DIAMOND JEWELLERY ACQUISITION

Diamond jewellery received as a gift or self purchased

DIAMOND DEPOSIT

A body of rock or other mineralisation containing a concentration of diamond of possible economic interest

DIAMOND DREAM

The allure that diamonds have for consumers on the basis of their association with romance and a sense of the eternal, and the fact that they are seen as a lasting source of value

DIAMONDIFEROUS

Containing or yielding diamonds

DIAMOND JEWELLERY

Jewellery containing diamonds, no matter how big or small, including in combination with other precious or semi-precious stones

DIAMOND PIPELINE

The industry value chain that runs from consumers and retail stores to jewellery manufacturers, cutters and polishers, back to producers and explorers

DIAMOND RECYCLING

The sellback or trade-up of previously owned diamonds or diamond jewellery

DOWN-HOLE LOGGING

The process of measuring physical, chemical, and structural properties of penetrated geological formations using logging tools that are either lowered into the borehole on a wireline cable (wireline logging) or placed just behind the drill bit as part of the drill pipe itself (logging-while-drilling)

DOWNSTREAM

The stage of the diamond value chain that includes jewellery retailing to end consumers

DER

Diamond Engagement Ring

E

EBIT

Earnings Before Interest and Tax: an indicator of a company’s profitability, calculated as revenue minus expenses, excluding tax and interest

F

FINE JEWELLERY

Jewellery made with precious materials such as gold, and precious and semi-precious stones

G

GEM

A cut and polished precious stone fine enough for use in jewellery

GEM-GRADE, GEM-QUALITY

A rough or manufactured precious stone fine enough for use in jewellery

GIA

Gemological Institute of America. A US-based non-profit organisation established in 1931 engaged in research, gem identification and grading services as well as a variety of educational programmes worldwide

H

HPHT

High Pressure High Temperature: a process to create and treat synthetic diamonds

I

IBA

Impact Benefit Agreement: an agreement made with aboriginal peoples to ensure that they benefit from mining projects and are compensated for any negative impacts of mines on their communities, their land, and their traditional way of life

IIDGR

The International Institute of Diamond Grading and Research is the part of De Beers which offers polished diamond grading services and through which De Beers’ diamond verification instruments are sold

INDICATOR MINERALS

Minerals that are used to help locate diamond deposits. They are minerals which are characteristic of kimberlite, but which are usually more abundant than diamonds (and therefore easier to find). Indicators form in association with diamonds in the kimberlite and are scattered over a wide area by erosion. By tracing these indicators, the source of the kimberlite may also be found

INDUSTRIAL DIAMONDS

Natural diamonds and synthetics used for non-jewellery purposes in manufacturing processes across various industries (oil and gas, precision tools, mining, etc.)

INTERNATIONAL GEMOLOGICAL INSTITUTE

A diamond, coloured stone and jewellery certification organisation established in 1975 and headquartered in Antwerp

K

KIMBERLEY PROCESS (KP)

Intergovernmental rough diamond certification scheme aimed at preventing the sale of conflict diamonds entering the legitimate diamond value chain

KIMBERLITE

An intrusive igneous rock that is sometimes diamondiferous. It is unevenly grained, containing minerals such as olivine, phlogopite and pyrope garnet, cemented with a groundmass consisting of minerals such as serpentine, calcite and chromate. Kimberlite occurs in the earth’s crust in vertical structures known as kimberlite pipes

M

MACRODIAMOND

A recovered rough diamond greater than 0.5mm

MELÉE

A term used to describe small cut and polished diamonds. The diamond weight for melée diamonds ranges from as low as 0.001 carats (1000th/carat) to 0.18 carats

MICRODIAMONDS

Very small rough diamonds, less than 0.5mm

MIDSTREAM

The stage of the diamond value chain that includes sales of rough diamonds, cutting and polishing, primary and secondary sales of polished diamonds and jewellery manufacturing

N

NATURAL DIAMOND

A diamond formed naturally over millions of years in the earth’s crust

NEAR GEM QUALITY

A quality band between gem-quality and industrial diamonds

O

OPEN-PIT MINING

Mining from the surface to expose the ore below

P

POLISHED

Diamonds that have been cut and polished (manufactured) in preparation for use in jewellery manufacture

PWP

Polished Wholesale Price, a term referring to prices achieved by cutter polishers in Cutting Centres for polished diamonds

R

RESERVES

Mineral deposits that can be economically extracted

RIPPLE EFFECT

Temporary mismatch between supply and demand caused by the de-stocking or re-stocking activities of midstream operators in response to changes in market conditions

ROIC

Return On Invested Capital: The return on invested capital measure gives a sense of how well a company is using its money to generate returns. Comparing a company’s return on capital (ROIC) with its cost of capital (WACC) reveals whether invested capital was used effectively

ROUGH DIAMOND

A diamond that has been mined but not yet cut and polished in preparation for use in jewellery manufacture

S

SIGHT

An event during which customers can inspect and buy diamonds from De Beers

SIGHTHOLDERS

Term contract rough diamond customers of De Beers

SIMULANT

A substance used to imitate diamond

SMALLS

Colloquial term for rough diamonds under three grainers. A grainer is a unit often used in the diamond trade to approximate the weight of a rough diamond; a grain is approximately 0.25 carats

SMARTY CAMERA

An in-vehicle Event Data Recorder (EDR) which makes constant video recordings of a journey; it is designed to reduce risk by encouraging safe driving behaviour and aiding in the process of investigating car accidents

SOLITAIRE

An item of jewellery (for example, a ring) that highlights a single diamond

SORTING

The process of classifying rough diamonds into a variety of categories based on their natural characteristics, specifically their colour, clarity, carat and model or shape

SYNTHETIC

A man-made diamond that has the same chemical composition, crystal structure and physical properties as its natural counterpart. Where a product is man-made, but has the same structure as a natural counterpart, an accepted description must be used to make clear that the product is man-made. Synthetic is one such description

T

TREATMENT

Any non-natural processes (other than shaping, polishing and surface cleaning) that change, interfere with and/or contaminate the natural appearance, composition or durability of a gemstone. For diamonds, this includes colour treatments (and decolourisation or ‘bleaching’), fracturefilling, laser-drilling, irradiation treatment, and coating

U

UNDISCLOSED SYNTHETIC

A synthetic diamond that has been falsely passed off as a natural gem

UPSTREAM

The stage of the diamond value chain that includes rough-diamond exploration and production

W

WACC

Weighted Average Cost of Capital: A calculation of a company’s cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC calculation

WHOLESALER

An organisation that buys polished diamonds in order to distribute them to jewellery manufacturers and retailers