Synthetic Diamonds Armageddon or Cultured Bliss

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Synthetic DiamondsArmageddon or Cultured Bliss?

• Capital Resources Conference
• Gaborone July 2008

WWW Group of Companies
PolishedPrices.Com
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Time Magazine

• Armed with inexpensive, mass produced gems, two
  startups are launching an assault on the De Beers
  Cartel.
• 2003

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Definitions

• HTHP High Temperature High Pressure
• Predominantly off colour
  including fancy yellows.
• CVD Carbon Vapour Deposit
• Gem colours and fancies
  particularly blues.

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Synthetic or Cultured

• OED synthetic to imitate a natural product
• synthetic cream
• imitation leather
• A pejorative term
• Synthetic Diamonds are real diamonds, made by
  man not by nature.
• Synthetic / Cultured should be used
  interchangeably.
• Cultured in fact closer to reality than
  synthetic

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CVD

• Apollo Presentation in London
• Current production is about 1,000 carats a month
• Target in 7 years about 1 million carats per
  annum.

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Supply Demand Scenario
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Objections to Cultured Diamonds

• Threat to natural scale?
• Threat to the status quo to whom?
• Contamination major risk.

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Limitations to Scale

• CVD
• About 1500 stones per reactor per annum
• To get 1 carat polished must be about 4 mm
  thick
• Must not confuse between Hero samples and
  commercial production.
• Currently no public proof that large scale
  cultured diamonds are a commercial proposition
• Where is Element Six in this equation?

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Potential

• New or different product
• Commercial Opportunity
• Marketing Opportunity for a bespoke product

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Conclusion

• Our industry needs cultured diamonds
• It represents a tremendous commercial opportunity
• It is not easy