Q: Has the Botswana Government paid for its equity stake in HB Antwerp?
A: The due diligence phase was done, and the Government of Botswana was about to share the draft contracts. No equity transaction has occurred to date.
Q: In Parliament in August 2024, the government intimated the need to renegotiate the agreement from the 24 percent equity with the view to snap additional shares without injecting more capital. What are your thoughts on this issue?
A: To be absolutely clear, the equity proposition originated from the Government of Botswana, it was their initiative, not ours. HB Antwerp’s mission has always been clear—to revolutionise the diamond industry by ensuring equitable returns to countries of origin while celebrating the unique provenance of each diamond. That mission remains steadfast and uncompromised, we want to create jobs and bring greater returns to the economy of Botswana. Negotiations, by their very nature, involve dialogue and compromise. At the time, we were actively engaging in these discussions to align on mutual interests.
Q: The government also indicated that it would take up a stake in HB Antwerp through Khumo Minerals Botswana, one of three companies formed by the Government. Has this already happened? If not, do you think it will happen despite the change in the Government?
A: No, this has not occurred. However, the viability and success of our model stands on its own merit. Our financial results and the tangible benefits realised by our partners, such as Lucara, since entering into a sales agreement with HB Antwerp, speak volumes. We remain confident that any administration will recognise the value we bring to the table.
Q: Do you think you will enjoy the same support from President Duma Boko as you did with the former?
A: We are neither apologists nor sympathisers for any political party. Our proposition is rooted in transparency, equity, and innovation, powered by our proprietary technology and data. We operate for Botswana and by Batswana, guided by principles, not political affiliations.
Q: De Beers appears quite confident that they can rebuild the historical relationship with the Botswana Government. Does that affect your plans to gain more value from diamonds?
A: HB Antwerp and De Beers operate in fundamentally different domains. De Beers has historically been focused on mining, while we are revolutionising the downstream transformation of diamonds. Our offering is entirely distinct, creating value in ways that have never been achieved before. Comparisons are neither relevant nor accurate.
Q: Why do you think markets should not be worried about the soundness of your business model should the Government wilt under pressure to ‘cut ties’ with HB Antwerp?
A: Our track record speaks for itself. In just four years, we have delivered consistently, even amidst unprecedented challenges such as the COVID-19 pandemic, the rise of synthetic diamonds, and market downturns in the diamond industry. HB Antwerp has demonstrated resilience, adaptability, and growth, underscoring the robustness of our model. We were ranked as the #12 company on Fortune’s 2024 Change the World list. This recognition highlights the impact of HB Antwerp’s game-changing business model, which prioritises local impact and returns more value to Botswana.
Since its founding in 2020, we have redefined transparency in the diamond market by implementing an advanced technology model to shift the benefits to the country of origin. Focused on empowering local communities, HB invests in skill development and job creation in a technology-driven diamond environment. That is evidence of the soundness of our model.
Q: What channels do you have to source rough diamonds if De Beers and the Botswana Government decide to stifle access to their rough diamond channels?
A: We see no reason why such a scenario would arise. Nevertheless, we are prepared and equipped to navigate any challenges, as adaptability is integral to our ethos.
Q: Would you consider listing to raise capital for your business?
A: We have considered listing since day one, as this is the only way to reach scalable impact.
Q: What is the current market value of HB Antwerp?
A: It’s not the time or place to disclose the valuation of HB Antwerp. What’s clear is that we’ve pioneered the business model of the future— a business model in which HB is a service provider – that transforms minerals belonging to the country of origin and the communities that mine them.
