Will the diamond industry see more of the same with the appointment of Bruce Cleaver as the new CEO of De Beers following the departure of Philippe Mellier, asks Charles Wyndham in his latest commentary on polishedprices.com. Mellier succeeded in 2014 when De Beers was the only division of Anglo American that met the mother-company's target of a 15% return on capital employed. "The only problem was that reaching that target nearly wiped out the whole industry, a sort of wonderful coup de grace.
De Beers Group CEO Philippe Mellier is stepping down after five years with the company and will be replaced by Bruce Cleaver with the new appointment taking effect on July 1. Philippe Mellier said: “As I committed at the outset in 2011, I envisaged a five year plan with the team and the Board to reset De Beers on its current path.
Deviating from his standard m.o., in his latest "Diamond Intelligence Briefing" Chaim Even-Zohar (CEZ) gives De Beers CEO Phillipe Mellier center stage by laying out his argumentation from his Dec. 8 address to Anglo American's top executives and shareholders about the current situation and future prospects of the diamond giant.
When De Beers opened the search for a new CEO back in 2011, writes Financial Times, the company was recovering from the global financial crisis and was having to get to grips with the longer-lasting uncertainties caused by the end of its dominant position in supplying global diamonds, following regulatory moves against the company. Thus they set out to find someone that could offer a fresh perspective as the company sought to move forward - they wanted an 'outsider'.
Rob Bates of JCK takes an insightful look into the troubles that have plagued the diamond industry in the second half of 2015, and analyses the internal bickering that has resulted. Only a short time ago, De Beers was the crown jewel in the tarnished Anglo American crown, but now, at the end of 2015, the bottom has fallen out of the diamond business. De Beers’ second-half sales will likely come in at $1.2 billion–$1.3 billion, a 30-year low.
Monsieur Mellier did make the rather unfortunate error of saying that 2015 was going to be a bumper year, which only shows how deliciously misinformed he must have been from his cohorts of minions. Rapaport on the other hand has been in the diamond industry longer than most, he has certainly made more money from it than most. If ever there was someone who should be shouldering much of the blame for the appalling situation in which the diamond industry finds itself it is that selfsame charlatan, Rapaport. Whatever Mellier has or has not done, it ranks as a mere misdemeanor compared to the cy
During his speech at De Beers Insight session at the JCK show, De Beers Group CEO, Philippe Mellier reiterated the company’s strong belief in a bright, demand-driven future for the global diamond industry. Referring to conflicting media reports - De Beers saying demand is growing, while others claim demand for diamond jewelry has been experiencing a steep decline - Mellier said both visions are true.
JCK reports that apart from earlier reports today on reduced prices and smaller allocation at the latest sight, attendees said that CEO Philippe Mellier spoke with surprising passion at the regular sightholder dinner, acknowledging the problems that clients have been having for the past eight months. He stressed that De Beers was committed to the long-term health of the business and to forging strong relationships with its clients, which struck some attendees as a marked change from prior comments.
The world is running out of diamonds but the boss of De Beers, Philippe Mellier, doesn’t seem too bothered: after all, he knows a diamond is forever.
Unlike gold or platinum, diamonds have only one significant use: as jewellery to adorn (mainly) women. Jewellery accounts for 99 per cent of the diamond market by value; and the rarer diamonds become, the more expensive they will get – at least that’s the theory.