The State Diamond Trader Annual Performance Plan 2013 – 2014

State Diamond Trader: Mandate To promote the diamond beneficiation industry through research and development 2

State Diamond Trader: Vision Be a catalyst for the transformation and growth of the local diamond beneficiation industry 3

State Diamond Trader: Mission Ensure acquisition of and equitable access to rough diamonds with particular focus on HDSAs Promote the growth of the diamond beneficiation industry through relevant interventions Establish and maintain a transformed client base of local diamond beneficiators 4

Strategic Objectives Contribute to the growth of the local diamond beneficiation industry 2. Develop efficient means to market diamonds not suitable for local beneficiation 3. Develop and acquire appropriate Human Resource capacity 5

Strategic Objectives: In order to contribute to the growth of the industry, SDT has agreed to execute the following main activities: Develop and implement marketing and industry promotion strategy Establish collaborations with relevant skills development State institutions Key Activities: 6

Strategic Objectives: Facilitate relevant capacity building for HDSA and small beneficiators Contribute to the development of a regional trading hub 7

State Diamond Trader: background The State Diamond Trader (SDT) was established in July Diamond Second Amendment Act, 29 of 2005 SDT is a schedule 3B government business entity SDT does not receive funding or transfers from the fiscus To start its operations, the SDT received loan funding from the IDC and continued for trading purposes Staff were seconded from DMR and De Beers 8

State Diamond Trader: background SDT had to make profits from its diamond sales to build up financial reserves to sustain itself Currently has filled some permanent positions and increased the number of diamond valuator trainees The first Board term ended in September 2012 and the new Board term is for three years to September 2015 It now has its own permanent employees together with four seconded from De Beers 9

State Diamond Trader: Progress For three years, SDT implemented its special training programme in diamond sorting and valuation Programme has resulted in some being employed at the SDT, while others are still in training Several programmes established to build the capacity of HDSA clients have been implemented 10

Past Five Year Performance Over view 11

Budget and Performance While the SDT does not have an allocated budget, its budget is aligned to its objectives of contributing to the growth of the diamond beneficiation industry. It caters for appropriate skilling of its staff while also catering for the facilitation of capacity building for HDSA and small clients 12

State Diamond Trader: Progress Its budget strategy is aligned to its Strategic Objectives which enables it to carry out the necessary activities to achieve the Objectives As the available funds are not sufficient for the work required to grow the industry, the SDT plans to establish partnerships with industry stakeholders 13

Budget and Performance The SDT does not have any significant capital investment plan in the short term The SDT is already benchmarking against some of the outcomes of the NDP and aligning with those of DMR As the Beneficiation Strategy gets implemented, the SDT will contribute to its goals and thereby to NDP outcomes relevant to its business and mandate 14

Budget for Sales 331,360,035 Cost of Goods Sold (321,708,772) Gross Profit 9,651,263 Administrative Expenses (19,318,686) Interest income 1,836,097 Interest expense (2,004,239) Net income (9,835,565) 15

Budget for State Diamond Trader is budgeting to have the following as at the year end March 2014: Book Value Assets Retained Income Cash in the Bank

The State Diamond Trader