Becoming a Sightholder

In January 2014 De Beers announced a new dynamic system for selecting their clients for the following contract starting April 2015. 

 

Five Key principles of the new contract.



  1. De Beers Global Sightholder Sales (DBGSS) is committed to the Sight System:  Sightholders will be awarded an Intention to Offer (ITO), which stipulates the quantity and type of diamonds to be offered for three years in ten annual selling periods. 
  2. The selection process for the new contract period has been simplified, raising the bar while lowering the burden of application.
  3. Bolstering bank confidence in the Sightholder brand through increased financial transparency. 
  4. Mining to demand - New ways to get the right diamonds into the right hands at the right time.  Greater flexibility in selling to demand.
  5. Strengthen relationships in the industry. DBGSS will get closer to Sightholders and their business.

 

 

There are three elements to the new Selection Process:

 

1.       Gating Criteria:



  • Minimum Group turnover:  $30m annual average over 2011, 2012, 2013 (evidence required for 2014 application process)
  • Minimum rough diamond purchases (any source):  $20m annual average over 2011, 2012, 2013 (evidence required for 2014 application process)
  • Ability to produce unqualified financial accounts to IFRS standards
  • Debt Equity ratio of 70/30
  • Best Practice Principles / Kimberley Process :  Full (unqualified) compliance
  • Declarations:  Personal declarations from all Key Individuals; Group declaration 

 

2.       Continuous compliance with all of the above

3.       Demonstrating demand through purchase from De Beers Group in each contract year of a minimum of $15m for International Sights and Botswana and $5m for Namibia, South Africa and Canada.

 

 



Applicants who did not have a supply contract for the period May 2012-April 2015 have to provide unqualified audited accounts, compliant with IFRS and prepared by an auditor approved by De Beers, for their entire Group.  Their debt/equity ratio cannot exceed 70/30.





Applicants with a supply contract terminating in April 2015 will have to meet these requirements for the financial year starting January 2016, and provide a road-map in 2014 as to what steps will be taken in the interim that will enable them to be compliant by the set date. 



 

 

DTC_Stones

 

DBGSS has introduced a two-tier system of clients.



  • Sightholders will be awarded a three year contract.  At the outset of each year they will be informed of DBGSS's Intention to Offer (ITO) prescribing the quantity and type of diamonds DBGSS intends to supply them in each of the 10 sales weeks over the following twelve months.  During the course of each contract year the Sightholder will have to purchase a minimum of $15 million to be eligible for continued supply in the following year.

 

  • Accredited Buyer status will be awarded to new applicants who meet the compliance criteria and Sightholder clients who failed, in the previous year, to purchase the minimum required.  These clients will be eligible to purchase diamonds that are offered by De Beers in excess of the ITO supplies to Sightholders.

 

There are four levels at which customers will have access to De Beers Group diamonds:



1.       Through De Beers Auction Sales (Open to all).

2.       Accredited Sightholders who can apply for ex-plan or purchase of refused goods.

3.       Sightholders with an ITO.

4.       Sightholders with an ITO who submit approved plans for Strategic Supply.

 





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