December 2015

Pitch Deck for eCommerce Marketplace for ASM Diamonds

Gemia Opportunity

Improving lives and livelihoods for artisanal miners through an ecommerce marketplace

Online marketplace directly linking formalized miners to diamond buyers

Gemia efficiencies can offer higher prices to miners for rough diamonds

Launch in CDI with West and Central Africa Growth Plan

Market solution to the challenges associated with ASM diamond mining

Problems

Gemia Solution

No direct access to international market for miners

Information asymmetry and supply chain inefficiency

No way for jewelers to source traceable ASM diamonds

Artisanally Mined Diamonds

Account for nearly all instances of conflict diamonds

Account for 20-25% of global diamond production

Concept in Brief

Each step will conform to Kimberley Process Guidelines

Miner finds stone and

goes to point of sale

Gemia rep gathers

characteristics of the stone and miner

Information posted to the

Gemia Marketplace

Pre-Screened Diamond

buyers participate in online auction

Sellers can accept or reject the

offer

Gemia transports to

purchaser

Gemia Field Agents will be trained in rough diamond valuation and use of the mobile technology package

Gemia Field Representatives

1.

Valuation

2.

Marketplace

3.

Transport

• Tablet and technology valuation package provided to each Representative

• Bidding occurs & miner information verified

• Gemia facilitates KP compliant export

Representative will be Gemia employee or employee of buying house

• Miner accepts or rejects the Gemia bid and is paid for stone

Precious Stone Valuation Technology

Gemia and PRADD II will work with EWB on Technology Development

Sarine Technology New Technology Development

• Sarine has mobile systems for evaluating most rough diamonds

• Explore partnership or using their technology to plug into Gemia

• Gemia develops technology to scan stone and produce unique fingerprint

• Estimate the value of stone with margin of error gain based on 4Cs and market conditions.

• Allow rough diamond buyer confidence to make an online bid

Online Marketplace

• Buyers Portal• Sortable list of available stones based on characteristics• Auction with incremental bidding or direct sale based on floor price• Online buyer can have the rough stone shipped directly or can

choose various value-added services

• Gemia Representative Portal• Tablet based interface • Enter 4C parameters, basic due diligence, and pictures• Auction and sales results from HQ Portal

• Gemia HQ Portal• Verify marketplace entries• Communicate with Buyers and Field Agents

Gemia eCommerce Marketplace will connect Miners directly to buyers

Channel Partners and Customers

3. Jewelers2. Cutters and Polishers

• As Gemia grows, there will be opportunities to sell directly to responsible jewelers and their customers

• Jewelers get access to traceable ASM stones produced to KP+ standards

• Cutters become customers in auction or receive a fixed percentage of final sales price for service

1. Buying Houses

• Buying houses act as first customer or as exporting partner

• Gemia can open additional foreign markets for buying houses

• Rough diamond buying houses in Antwerp also high potential partners

Access to Buyers Portal will be given to these partners

Market Size and Segmentation

Market Size

ASM CDI Market Size: 80,000 carats/year

Africa ASM Diamond Size in Target Countries: 1,000,000+ carats/year

Vast market with an opportunity to grow into all ASM gemstones

ASM Diamonds

CDI

ASM Diamonds Target Countries

ASM Gemstones

• *Legal CDI Diamond Exports peaked in 1999 at 400,000 carats

• Value ASM Diamonds in Target Countries: ~ $500 Million

Market Pricing

Miners currently receive between 5-10% of stone value

Buying houses purchase stones from traders based on market conditions and experience

Average price in the region of $80-$100 per carat. Average price of a carat diamond on the world market varies dramatically based on 4Cs

Gemia will receive a commission (10% estimate) on sale and will add the cost of export and transport.

Floor price for Gemia auction will be established by scanning technology

Rough diamond buying still more of an art than science

Standards, Safety, and Logistics

ASM Diamonds Africa

ASM Gemstones

Environmental and Social Standards: • Gemia will develop an environmental and

social due diligence model based on international best practices such as OECD DDG

• Gemia will conform to KP compliance

Safety and Transport:• Gemia works in partnership with buying

house for transport• Adopt appropriate safeguards for

transport and storage based expertise and best practices

• Exports through hand delivery after minimum stock established in capital cities

Alternative Solutions

There is no solution that provides a mine to buyer market for ASM Gems

Organization Valuation TraceabilityKP

CompliantASM

Marketplace

Sarine ✔ ✖ ✖ ✖

DDI ✖ ✔ ✔ ✖

DiamCare ✖ ✔ ✔ ✖

Development Solutions

ASM Diamonds Africa

ASM Gemstones

Gemia will work with partners to bring technical assistance and organizational capacity building to miners and mining communities as a precondition for the venture.

Gemia will leverage donor and private funds and partnerships to provide the following services:

• Organizing miners• Behavioral change communication and

building trust with local actors• Training on standards needed to sell via

Gemia• Identifying financing options for miners• Technical assistance for miners in

improved and safer techniques• Management of local development funds

Support from the Donor Community will be key to making this venture work

Venture Financing

Under all scenarios, a company must be created to launch the venture

Public Sector Options Private Sector Options

USAID Public Private Partnership Business Plan Competitions

Research or Social Enterprise Grants

Angel Investment Seed Capital

USAID Development Innovation Ventures

Philanthropic/Strategic Matching PPP funding

Crowdfunding

Private equity/quasi-equity impact investment funds

Sustainable entrepreneurship debt

Next Steps and Feasibility Study

Unique Business Opportunity with Motivated Partners

Market Research- Channel Partners - Market Size in target countries

Technology Development- Platform Development- Precious Stone Valuation Technology

feasibility and prototyping

Business Model Development- Proforma and breakeven analysis

under Different Growth and Pricing Scenarios

- Budget for a Pilot

Team Development - Venture Structure

Venture Financing - Develop investment approach- Development Innovations Venture

Application- Due Diligence on potential private

Sector Partners

Thank You!

Back Up Slides