Petra Diamonds Limited
Annual Report and Accounts 2013
16
Strategic Review
Our Market
A strong market position
De Beers, Alrosa and Rio Tinto remain the dominant players
in the diamond market.
Beneath the majors, there are only four sizeable quoted diamond
producers, being (by order of market capitalisation) Dominion
Diamond Corporation, Petra Diamonds, Gem Diamonds and
Lucara Diamond Corporation.
Based on FY 2013 production of 2.67 million carats and sales
of US$402.7 million, Petra accounted for 2% of world supply
by volume and 3% by value.
There is a positive long-term outlook for the rough diamond market due to inherent
supply constraints which suggest that supply will struggle to keep pace with demand.
Petra provides investors with a premier investment opportunity offering direct
exposure to the diamond market.
Petra’s market position
Given the scarcity of economic diamond deposits
worldwide, barriers to enter this elite group
of diamond producers are high.
Source:
Petra Diamonds and other
company records
MAJOR PRODUCERS
De Beers
Alrosa
Rio Tinto
MID-TIER QUOTED PRODUCERS
Petra Diamonds
Dominion Diamond Corporation
Gem Diamonds
Lucara Diamond Corporation
NON-QUOTED PRODUCERS
Non-quoted producers such as
Democratic Republic of Congo,
Zimbabwe and Angola
SHARE OF WORLD DIAMOND PRODUCTION
(BY VOLUME)
ca.
60
%
ca.
7
%
ca.
33
%
2013
WORLDWIDE ROUGH DIAMOND
PRODUCTION (BY VALUE)
US$
12.6bn
WORLDWIDE ROUGH DIAMOND
PRODUCTION (BY VOLUME)
128
million
carats
Source: Kimberley Process Certification Scheme
Source: Kimberley Process Certification Scheme
Petra has the largest resource base of any mid-tier
diamond producer.
Large scale resources
In terms of resources (the number of ‘carats in the ground’
estimated as yet to be mined at Petra’s operations), the Group’s
major resource base of 309.6 million carats is estimated
to be the largest in the world outside the majors.
GROSS RESOURCE BASE
Finsch
16%
Cullinan
65%
Koffiefontein
2%
Kimberley Underground
2%
Williamson
13%
Fissures
2%
1...,8,9,10,11,12,13,14,15,16,17 19,20,21,22,23,24,25,26,27,28,...142