SYDNEY, AUSTRALIA: Burgundy Diamond Mines Limited (ASX: BDM) provides an update on the progress of the sales strategy driven by its ultra-luxury diamond brand, Maison Mazerea.
Further Sales Agreements
Having been launched in Paris in July, the successful establishment of the Maison Mazerea brand provides the platform and market positioning to commence sales of an extensive inventory of high-value Fancy Colour diamonds cut and polished by Burgundy over the past six months.
Further to the previously announced collaborative sales and profit-sharing agreement with Bäumer Vendôme in Paris, (see announcement dated 8 December 2021), the Company is pleased to announce it has now entered into a two-stage agreement with Solid Gold Diamonds, one of Australia’s leading independent jewellers headquartered in Burgundy’s hometown of Perth, Western Australia.
Stage one is an initial agreement regarding bridal jewellery, which will start in August presenting uniquely-cut Maison Mazerea branded diamonds in Solid Gold’s engagement and bridal jewellery designs, with a profit-sharing agreement on all sales. Stage two will see close collaboration between Burgundy and Solid Gold on the design and production of an exclusive fine jewellery collection featuring larger and higher value Maison Mazerea diamonds, with sales commencing at a debut of the collection in October.
Building on the international impetus of the Paris launch in July and the high level of interest shown, a second launch event is being planned for Perth in September. This will introduce the Maison Mazerea brand to select Australian investors and customers and showcase some of the remarkable stones in the fine jewellery collection.
Separately, collaborative arrangements with the Princess Grace Foundation and its Grace de Monaco luxury brand will culminate in an exclusive launch event in New York in November, with sales of fine jewellery via private invitation-only viewings. In addition, Burgundy continues to progress the development of similar agreements with other international jewellers and luxury watchmakers, with ongoing sales events accelerating through 2023.
The Company is targeting 1,200 carats of polished diamonds per year utilising its current Perth-based cutting and polishing facilities, with expansion plans underway to double this capacity. Supply of rough diamonds will include continued purchase of third-party rough and anticipated production building from Ellendale operations in 2023.
Wholesale prices of polished stones will be in the range of US$5,000 to US$50,000 per carat, depending on various factors such as Colour, Clarity, Cut and Carat weight, with the average expected to be at the lower end of the range. Compounding the potential earning capacity are the significant multiples of price mark-ups into retail jewellery, which Burgundy will share via its profit-sharing agreements with partner jewellers.
Burgundy Managing Director Peter Ravenscroft said, “These exciting sales and profit-sharing agreements are a result of our successful launch of Maison Mazerea in line with our vertically integrated business model and strategy to be a world-leading, end-to-end diamond company. With today’s announcements and our expected runway for growth, our strategy is now demonstrating its true potential. As we continue to leverage these new and existing jewellery sales and profit-sharing agreements through our collaborative alliances, our shareholders will continue to benefit from the greater margins generated throughout the value chain.”