Share Name Share Symbol Market Type Share ISIN Share Description
Diamond Cap LSE:DIAM London Ordinary Share IM00B1Y64R53 ORD USD0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +$0.00 +0.00% $0.1005 $0.00 $0.00 - - - 0 06:40:26
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 3.4 0.5 21.8 0.75

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The following charts show the top ten diamond producing countries by volume and the top ten countries when you look at it from the value of production. The top ten producing countries, that account for over 80% of the world's rough diamonds. Rank Country % of Worldwide Production Rank Country Value in USD 1 Russia 22.40% 1 Botswana $2,940 2 Botswana 19.90% 2 Russia $1,989 3 Congo (Dem. Rep.) 18.60% 3 Canada $1,646 4 Australia 13.20% 4 South Africa $1,458 5 South Africa 9.10% 5 Angola $1,300 6 Canada 8.10% 6 Congo (Dem. Rep.) $790 7 Angola 4.80% 7 Namibia $698 8 Namibia 1.30% 8 Australia $343 9 Ghana 0.60% 9 Other $132 10 Brazil 0.40% 10 Brazil $35 /see:
Feature on Zim diamonds this morning - Radio 4 - should be on iplayer (started approx 7.20 ofr 5 minutes)
November 18, 2008 Diamonds no longer an investor's best friend as recession removes sparkle Mr T brought bling to the small screen, but the downturn demands a more demure outlook, affecting diamond sales Catherine Boyle Diamonds may be for ever, but their high price is not, as recession starts to hit even the richest. Gem Diamonds, the London-listed miner, said yesterday that it may make a loss this year because of a sharp fall in diamond prices over the past two months. Shares in Gem plunged by 38 per cent to 213½p after the company said that it has had to stop some exploration activities in the Democratic Republic of Congo and that it may suspend output at an Indonesian mine. The average price per carat for a rough diamond from its mine has fallen this year from about $2,500 (£1,670) to about $1,400. Meanwhile, leading players in the diamond industry, such as De Beers, which mines almost half the world's diamonds, and Alrosa, the Russian mining group, gathered in Antwerp, the world's diamond capital, to try to tackle falling prices. Prices of polished diamonds have fallen by 10.8 per cent since August, according to the diamond prices index. At the rough diamond end of the market, in which miners sell to diamondaires, industry-watchers are talking about even greater falls as people pay less for jewellery and diamondaires find it harder to borrow cash to buy gems. Related Links Laurence Graff: still rolling with stones Diamonds beginning to lose their sparkle Gold price rises 10% as investors flee to safety With ABN Amro Diamond Bank, the diamond industry's biggest creditor, in the hands of the Belgian Government after Fortis, its parent company, had to be bailed out, credit has dried up. If the $3 billion that ABN used to lend to the industry is no longer available, many of the smaller companies may suffer. Des Kilalea, an RBC Capital Markets analyst, said that prices for the sort of stones that ordinary consumers might buy could fall by 30 to 40 per cent, with top-end jewels falling even more or being withheld from the market. "These stones are the equivalent of a Picasso or a Renoir – and if you own a Picasso you are not going to sell it at the moment," Mr Kilalea said. As the United States, which buys about 45 per cent of the world's diamonds, teeters into recession, the industry is waiting to see how Christmas trading, which accounts for 40 per cent of its diamond sales, is affected. The big players can try to control prices by reducing the amount of diamonds that they mine, but Mr Kilalea said that this would be more difficult to do than during the last long diamond price slump, in the 1980s, because competition regulations now were tougher. Freddy Hannard, head of the Antwerp World Diamond Centre, said: "The market situation is unprecedented. We are in the midst of a global economic crisis. All of us have felt the pressure . . . no market, no liquidity, no demand and, worst of all, no confidence." Laurence Graff, chairman and founder of Graff Diamonds, which bought a 4.5 per cent stake in Gem this month, was more confident about the future of the market. The billionaire, who has a necklace called the Lesotho Promise on sale for $75 million, said: "Top-quality gems are rare, hard to find and polish. There will always be a demand for these high and top-quality diamonds, both to be worn and in which to invest. In the short term, their prices may fluctuate, but in the long term they retain their quality, unlike other commodities." Glen Turner, commercial director of Gem, was optimistic that in the medium to long term demand would become much greater than supply. The sale of one huge diamond, such as the 478-carat giant that Gem Diamonds found in its Letseng mine this year, can greatly affect a company's results for the quarter. Sergei Vybornov, the president of Alrosa, said that the company may have to reduce production by up to 40 per cent to ease the glut of rough diamonds on the market. David Abery, finance director of Petra Diamonds, said: "We are watching this thing develop and it's changing on a daily basis." Charles Wyndham, of, said: "The diamond industry is a passenger in the train smash that has occurred throughout the world's financial markets and not some lucky 'decoupled' bystander. Everyone is going to be suffering to a greater or lesser extent. We are not at the worst part of the crash yet, which looks likely to come in the first quarter of 2009." Facet values - About 20 per cent of mined diamonds are suitable for use in jewellery and are cut, polished, set and sold as jewellery - Drilling diamonds are embedded in large steel drill bits that drill into rock for wells to find water, oil, and natural gas - Gemstones are cut and polished using a mixture of oil and diamond powder - Circular diamond-tipped saws are used in industry and construction /see:
Diamond found in Lesotho among largest ever: company Sun Sep 21, 10:52 AM ET LONDON (AFP) - Gem Diamonds, a London-listed mining firm, said on Sunday it had recovered a 478 carat diamond from its mine in Lesotho: the 20th-largest rough diamond ever found. The discovery of the gem, which the company said had the potential to become one of the largest round-cut diamonds in the world, was made on September 8 at the Letseng mine in Lesotho. "Preliminary examination of this remarkable diamond indicates that it will yield a record-breaking polished stone of the very best colour and clarity," the company's Chief Executive Clifford Elphick said in a statement. The diamond, which has not yet been named, has the potential to yield a 150 carat polished stone, a company spokesman said. /see:
If you thought diamonds were costly, think again – prices are going up
Sung Hung Kai Properties has named its new luxury development in Hong Kong, above Kowloon Station after a diamond, believe it or not! The Cullinan :
Shore Gold Inc. (TSX: SGF; 4.70) Rating: Risk Qualifier: Price Target: Outperform Speculative Risk 8.00 Encouraging Results at Orion but Model Revision Drives Target Reduction • Still Early Stage, Results Promising. Shore published final LDD sampling results for the 20 hole program on the Orion North kimberlite. Results indicate there are two main zones of interest within Orion North. • Key Takeaway. We believe that Shore Gold has been able to define higher grade zones within the Orion North deposit. Previous experience with the 100% owned Star kimberlite has shown that underground bulk sampling could improve grades. • Valuation. Our 2007 NAV estimate for Shore Gold is $8.02/sh (down from $8.74/sh). Our revised target price is $8.00/share, based on a 1.0x NAV multiple. Carving out our $4.35/sh NPV for the Star Project and working capital generates a value of $5.47/sh, suggesting the FALC JV comes free at these levels.
February 26, 2007 Gem Diamonds Raises Just Under £300 million And Gets Full London Listing So, who was the South African who came quietly into London and left last week after raising £297.21 million for a company which was only formed in the summer of 2005 and now has a full listing in London? A diamond company, to boot, with one mine in production in Lesotho and another five at the development stage – four of these being in the Democratic Republic of Congo. His name is Clifford Elphick and he is both executive chairman and chief executive of Gem Diamonds Ltd which flies in the face of UK company governance just for a start.. Agreed the company is registered in the British Virgin Islands, but it has its head office in London and intends to conduct its affairs as resident in London for tax purposes. Letseng drilling in satellite pipe at night It might therefore be a good idea to go the whole hog and separate the jobs of chairman and chief executive. In fact on page 55 of the prospectus, which runs to a monster 510 pages, the board admits that Elphick having both jobs does not comply fully with the Combined Code. However it feels that it is appropriate at this time and an independent chairman will be found within 12 months. That smacks a shade of arrogance. "We know what the rules are, but it does not suit us to obey at the moment. Maybe later" Well it has to be acknowledged that Clifford Elphick is one of the anointed and his company's brokers JP Morgan Cazenove sometimes have their own ideas of the rules. Being one of the anointed in this case means that the hand of Harry Oppenheimer hovered over his head early in his career in the diamond industry. In 1988 he was called from Anglo American where he was working in the corporate and international finance division to be Harry Oppenheimer's personal assistant. Clearly he fitted the bill as he was then appointed as managing director of E Oppenheimer and he stayed there from 1990 to 2004. If you want a career with De Beers you cannot do much better and he crowned it by serving on the De Beers executive committee after the buy-out in 2000. How and why he parted from De Beers is not known, but it seems doubtful if Jonathan Oppenheim is on his Christmas card list. With him as executives are Kevin Burford, an accountant and long term De Beers man, Graham Wheelock, the same, and Gavin Beevers, the same except the latter two were involved in exploration and production rather than finance. The other two directors are Roger Davis, who worked his way up on the management side after an Army career to be chief executive of Barclays UK banking operations, and Dave Elzas. Dave has a slightly unusual CV in that he was managing director of the Beny Steinmetz Group which is a rival of De Beers in many aspects of the diamond industry. Maybe it was this, and the fact that he has been involved in major fund management, that attracted Elphick to him. Be in no doubt that it is Elphick who is in total control and has more than ten times as many shares as any other director. The pattern among senior management is also the same. All five spent a large part of their careers to date with De Beers so they should know what they are doing now that they are out on their own. And information on the Letseng mine will have been handed down to them as it was operated by De Beers between 1977 and 1982. It was actually acquired by Gem Diamonds in July 2006 from JCI and in the subsequent quarter to end September 2006 a total of 623,213 tonnes of kimberlite ore from the satellite pipe and stockpile were treated at a grade of 2.06 carats/100 tonnes to give around 12,464 carats. A major plus is that large gem quality diamonds are recovered on a regular basis and their presence can be modelled with a high degree of accuracy. The 603 carat Lesotho promise was recovered in August 2006 and sold for US$12.36 million – or US$20,497.50/carat – which makes a nonsense out of any attempts to forecast average value per carat. As at the beginning of last October the net probable reserves at Letseng amounted to around 55 million tonnes of diamondiferous kimberlite at an average grade of 1.68 carats/100 tonnes. At the present rate of production this would last something like 85 years , but a second treatment and processing plant is under construction which should be operational in 2008. This will double production levels to around 430,000 tonnes/month, but the life of mine will still be at least 35 years which will see most people off. This increase in production, at what has to be accepted is a low grade, should boost recovery of the larger stones though investors should be aware that it is always possible that there could be lean periods. The next push will come from the DRC where Gem Diamonds has four projects – Mbelenge, Longatshimo, , Lubembe and Tshikapa. The focus is on Mbelenge where production from alluvial gravels should start later this year. The Financial Times recently published an article entitled 'Stability tempts mining companies back to Congo' in which it reported that several of the world's leading companies were investing billions of dollars in the mineral-rich country, encouraged by the introduction of a World Bank-draftedmining code and the formation of a new government under Joseph Kabila,elected president in the first free vote in four decades. The leopard only changes its spots very gradually and it will be worth keeping a close eye on Moto Goldmines which has run into some political problems as we reported last week. The Central African Republic is very much under-explored as AXMIN and Pan African Resources can confirm and here the company is involved in another alluvial project, Mambere , where production is expected to start at the end of this year through a bulk sampling plant. A scoping study has already been carried out , initial bulk sampling has taken place, mine plans finalised and key items of plant and equipment should arrive shortly. Longer term, of course, the company is looking for other projects, especially kimberlite, in the usual African countries such as Angola, where it has an agreement with Angolan partners, and Botswana. Zimbabwe also gets a mention and as there seems little doubt that Mugabe is likely to fall off his perch fairly soon the timing could be propitious.. De Beers closed the Letseng mine in the 80s as there was limited demand for big white stones. It might now be ruing that decision as values of such stones have changed dramatically and Clifford Elphick appears to have timed his purchase well. . Based on the offer price of 950p per share, to which it is now standing at a slight premium, the market capitalisation of Gem Diamonds is around £550 million. Assuming FTSE index inclusion, and based on current market valuations, Gem Diamonds would rank number 218 in the FTSE 250. Quite how Mr Elphick managed to agree such a price for the shares and raise so much money is a bit of a mystery, but time will answer such questions.
SECRET PLAN... but not much cash Laura Lee Duffett's Tres-Or Resources Ltd. and Patrick Power's Arctic Star Diamond Corp. plan a much larger test of the Lapointe kimberlite in Northeastern Ontario before year-end. The pipe yielded modest diamond counts over the past year, but the partners believe a higher-grade zone could have economic potential. Tres-Or is looking at a novel approach to collect a much larger batch of kimberlite from the best part of the body. The plan Ms. Duffett said the partners were evaluating a method to extract a larger tonnage from the higher-grade diatreme zone that produced the best diamond counts and a single large macrodiamond. Tres-Or thinks the better rock covers at least four hectares, maybe 10 hectares of Lapointe, currently about 21 hectares in size. Collecting a sample from the deeper parts of Lapointe would normally be an expensive proposition if Tres-Or relied on traditional methods. Rather than drill up a relatively small amount of kimberlite, Ms. Duffett said Tres-Or is considering a method typically used to sink platforms for bridges to get at the rock. The plan apparently involves digging up the overburden and sinking two-metre steel casings into the hole. A crane would continue to extract the overburden. Once Tres-Or reached the kimberlite a secure and welded steel casing would extend upward to the surface. The company could then remove the kimberlite sample. Tres-Or is still working on the details of its largely secret plan, but getting the appropriate approvals is the only real delay. Ms. Duffett said the partners were applying for a mining lease for the project, and the application was now in the hands of the Ontario government. Tres-Or expects to get the lease and work permits settled by the end of November. The engineering work is complete and the partners have the required cash, so Ms. Duffett expects to start its mini-bulk sample before the end of the year. The slight delay should work to Tres-Or's advantage, as the ground will be frozen by the time the company starts digging its hole. The Lapointe pipe has a thicker layer of overburden that includes clay till layers and the uppermost kimberlite zones are wet and crumbly. An early freeze would therefore make the extraction easier. The cash A lack of cash did seem to be an issue through the summer. When Edward Williams's Diamond Discoveries signed an option deal on the Quebec play this spring, the OTC Bulletin Board-listed company agreed to match Tres-Or's exploration expenditures and pay over $223,000 over the next year. At the end of June, the company had a working capital deficiency of over $800,000 (U.S.). The company has over 300 million shares outstanding, which currently trade for less than one U.S. penny. @:
Peregrine Diamonds to acquire Kettle River 2006-10-26 09:57 ET - News Release one Peregrine share to five Kettle River shares: Peregrine will be issuing 2,259,522 common shares Mr. Eric Friedland of Peregrine reports PEREGRINE DIAMONDS TO ACQUIRE KETTLE RIVER RESOURCES, PEREGRINE'S INTEREST IN THE WO DIAMOND PROJECT TO INCREASE TO 61.14% Peregrine Diamonds Ltd. and Kettle River Resources Ltd. have entered into an agreement to effect a business combination pursuant to which Kettle River will be acquired by Peregrine. Kettle River's primary asset is its one-third equity ownership in DHK Diamonds Inc., a private company that owns a 20-per-cent participating interest in the WO diamond project joint venture, Northwest Territories, Canada, which contains the DO-27 and DO-18 kimberlite pipes. Upon completion of the business combination, Peregrine will hold a 54.475-per-cent direct and 6.67-per-cent indirect interest (for total of 61.14-per-cent) in the WO joint venture in addition to 92.65-per-cent of the diamond marketing rights and project operatorship. In addition, Peregrine will inherit (through Kettle River) a first right of refusal on the sale of the remaining two-third equity ownership in DHK held equally by Dentonia Resources Ltd. and Horseshoe Gold Mining Inc. The business combination will be accomplished by way of a plan of arrangement, amalgamation or statutory acquisition under the provisions of the Business Corporations Act pursuant to which in consideration for Kettle River being acquired by Peregrine, Peregrine will issue one common share for every five outstanding common shares of Kettle River, resulting in an exchange ratio of one Peregrine share to five Kettle River shares. As Kettle River currently has 11,297,611 common shares which are issued and outstanding and 2,026,000 common shares which are reserved for issuance under outstanding options, warrants or convertible securities, Peregrine will be issuing 2,259,522 common shares and reserving for issuance 405,200 common shares under the business combination with Kettle River. The effective date of the acquisition and the exchange and distribution of shares will be the date by which the acquisition is approved by the shareholders of Kettle River, any required court approvals have been received, all necessary filings have been made with all applicable regulatory authorities, the listing of Peregrine shares issued in consideration for the acquisition is approved by the Toronto Stock Exchange or other applicable stock exchange, and any and all other necessary steps are completed and approvals are received for the purpose of the completion of the acquisition, all of which is anticipated to occur or be obtained on or before Jan. 31, 2007. As a condition of the agreement, Peregrine has entered into voting and standstill agreements, executed by all of Kettle River's directors, officers and various shareholders representing over 30 per cent of the issued and outstanding shares of Kettle River. The voting and standstill agreements irrevocably bind the shareholders to vote their Kettle River shares in favour of the acquisition, among other things. A break fee in the amount of $1-million is payable to Peregrine by Kettle River in the event the acquisition is not consummated under certain conditions. Under the terms of the acquisition agreement, Peregrine will immediately extend a secured loan to Kettle River in the principal amount of up to $2.5-million, to be drawn down on an as-needed basis, to be used by Kettle River to make its WO diamond project joint venture cash call contributions and for general operating expenses (to a maximum of $150,000) until the completion of the business combination. @:
Geological modeling of the Star kimberlite in Saskatchewan ....pegs the size of the body at 276 million tonnes, of which 81 million tonnes lies on joint-ventured ground. The detailed geological model gives Shore just 194 million tonnes of kimberlite on its original property. The company's 2001 model indicated a potential tonnage of about 300 million tonnes of kimberlite, all of it on Shore's 100-per-cent-owned property. Shore is in the midst of a $60-million pre-feasibility study on Star. Shore ended the week down C$0.12 at C$5.24.
Shareholders in Forest Gate Resources good news after the company reported that it had intersected kimberlite at its West Side property near Prince Albert, Saskatchewan. The intercept came from the western extension of the 122 Kimberlite, which crosses the western boundary of Shore Gold and De Beers joint venture ground. The vertical hole intersected 11.8 metres of kimberlite, investors are now waiting to see how diamondiferous it is. Forest Gate ended the week up C$0.02 to close at C$0.22.
A Better Investment ? By Danielle Rossingh and Saijel Kishan Aug. 7 (Bloomberg) -- For the first time in 25 years, diamond production is declining and that may make the world's most coveted stones a better investment than copper, nickel and zinc, this year's top-performing commodities. Output from diamond mines worldwide is likely to fall 2 percent by 2015, says James Picton, a diamond analyst at W.H. Ireland who's been following the industry for 35 years. Production has increased about 9 percent in the past five years, according to the New York-based World Diamond Council, as mining companies hurried to find new deposits to meet soaring demand. A rally in prices will fuel earnings for producers African Diamonds Plc and Petra Diamond Ltd., according to Merrill Lynch & Co. and JPMorgan Chase & Co. The drop in production comes as purchases of the stones rise, helped by the booming economies of China and India. China alone doubled jewelry purchases since 2001 and may buy 20 percent more this year, according to www Diamond Forecast Ltd., a London-based research firm. Diamonds have ``the best fundamentals,'' said Evy Hambro, who manages the $6.6 billion World Mining Fund in London for Merrill Lynch. ``The gap between supply and demand is much bigge relative to other commodities.'' Rough, or uncut, diamonds don't trade on commodity exchanges. Instead Johannesburg-based De Beers, which sells 60 percent of the world's uncut gems, holds 10 sales a year, known as sights, to a select group of customers called sightholders from countries known for diamond cutting, including Belgium and Israel. That leaves shares of diamond producers as the easiest way to invest in the gems. `Very Positive' Hambro, with 1.5 percent of his assets in diamond companies said he will buy shares of Germiston, South Africa-based Gem Diamond Mining Corp., which goes public this year, and Toronto- based Aber Diamond Corp. Ian Henderson, who manages $2.5 billion in natural-resource assets for JPMorgan in London, said he has increased his diamond-share holdings to 4 percent from 1 percent in the past year. He declined to elaborate. ``I am very positive about diamonds, given the overall supply-demand situation,'' said Henderson. ``Of the 170 diamond companies out there, only 25 are actually producing.'' One of those is Dublin-based African Diamonds, whose shares almost tripled this year. Another is Sierra Leone Diamond Co., a Hemel Hempstead, U.K.-based company operating in West Africa, whose stock has also tripled. Shares of Petra Diamonds, a Jersey, U.K.-based explorer in Angola, South Africa and Botswana, have risen 52 percent. By contrast, the Bloomberg World Mining index of 48 companies, including OAO GMK Norilsk Nickel, the world's No. 1 nickel producer, is up 21 percent. ``There are no big mines out there in the foreseeable future,'' said John Teeling, chairman of African Diamonds, which made its first and only diamond-mine discovery two years ago in Botswana. ``We'd be very lucky to find a second.'' Retail Boom Declining production is a boon for retailers. Consumers bought $70 billion of diamonds worldwide last year, Picton said. Retailers including De Beers and Tiffany & Co. aim to increase that figure this year with new stores from Wall Street to Beijing. De Beers plans to open 20 new jewelry stores this year and next with Paris-based LVMH Moet Hennessy Louis Vuitton SA. ``There's something about diamonds that is completely seductive for people,'' said Stephen Webster, who designed the wedding rings for singers Madonna, Pink and Christina Aguilera. ``Everything else feels second-best.'' Thirty Percent Increase The value of rough diamonds, as the uncut stones are calle is likely to increase 30 percent in the next six years, says Picton at Manchester, England-based W.H. Ireland. His research shows that diamonds provided better returns than gold since 194 Diamonds, the hardest substance in the world, formed in primeval carbon rock structures known as kimberlites at least 1 kilometers (93 miles) underground. Volcanic activity brought th gems closer to the surface, and the first were found in the riverbeds of India's Golconda region. About 7,000 kimberlites have been discovered and only 15 percent bear diamonds. Since t first were discovered more than 2,000 years ago in India, the world has produced 380 tons of diamonds. The scarcer they are, the higher the price. The average value of the 114 million carats (50 pounds) of diamonds sold worldwide each year is little more than $7 billion, according to the World Diamond Council. In 2000, when 110 million carats were produced, the value was $7.8 billion. Outperform Metals ``Diamonds could very well outperform base metals'' in the coming years, said Andrew Ferguson, who manages about $313 million at New City Investment Managers Ltd. in London. ``Given the huge increases in demand and the imbalances in supply, I expect good returns.'' He declined to say how much. One threat to rising prices is the growth of synthetic diamonds. Since 1955, when General Electric Co. developed a process to develop synthetic gems for use in drilling, cutting and grinding tools, the use of non-natural gems has soared, today accounting for about half of all diamonds. Industrial use of diamonds accounted for 25 percent of supplies by weight or 5 to 10 percent by value, according to www International Diamond. Gemesis Corp., producer of most of the world's synthetic gem-quality diamonds, said it will raise output about eightfold in 2006 from last year to take advantage of rising prices. The rally in commodity markets, now in its fifth year, has sent prices for raw materials to records. Copper has more than doubled in price in the past year. Nickel is up 77 percent. Gold has surged almost 50 percent and reached a 26-year high in May. Prices in London were at $646.30 an ounce on Aug. 3. ``To have matched the average diamond-price increase since 1948, gold would have to be around $750,'' said the 70-year-old Picton. ``To have matched a basket of the finest, largest-quality gems, gold would have to be around $2,000.'' Few Producing Mines Some untapped diamond deposits are too dangerous to develop, adding to a shortage. Disputes over access to the gems have sparked violence in Angola and in the resource-rich Democratic Republic of Congo during the civil war that has killed more than 4 million since 1998. Diamond investments will enjoy ``above-average'' returns in the next several years, according to Trevor Steel, who manages $600 million in natural-resource assets at Baker Steel Capital Managers in London. ``Prices of diamonds and precious metals generally are more resilient to the short-term effects of an economic slowdown compared with base metals.'' W.H. Ireland's Picton says falling production, led by declines at the biggest producers, including Rio Tinto Group's Argyle mine in Australia, the world's largest, will leave $10 billion of demand unfulfilled. The drop will occur even after Botswana boosted output 17 percent last year. The nation, the world's biggest producer of diamonds, accounts for 25 percent of the gems. `Another Botswana' ``In order to meet the shortfall, you would have to find at least another Botswana, or better yet, two,'' said Picton, whose company is based in Manchester, England. ``It can't be done.'' Canada's Ekati mine, run by BHP Billiton, will be depleted by 2015, Picton said. Ekati, which produces about $700 million of rough gems a year, will last until 2017, said BHP spokeswoman Emma Meade in Melbourne. Rio Tinto's Diavik mine in Canada will drop ``sharply,'' Picton said. Rio Tinto said in December it will spend $910 million to extend the life of its Argyle mine to 2018. With diamonds hard to come by, some stocks have sputtered. Shares of Gravity Diamonds Ltd., a Melbourne-based company that explores in Congo, have slumped 45 percent in the past year. European Diamonds Plc of London, which explores and mines in Finland and Lesotho, southern Africa, is down 60 percent in the past year. ``The really tricky bit with diamond-exploration companies is finding a kimberlite that is actually economically viable,'' said Sacha Borthwick, an analyst at stockbroker Hargreave Hale Ltd. in London. ``The odds of that are very low.'' Most Expensive Global demand may rise 6 percent a year to $23 billion by 2015, Picton says. About 1.2 billion diamonds weighing 160 million carats and worth $13.4 billion were produced last year, according to www International Diamond. Uncut diamond prices rose 3.7 percent on average last year to $84 a carat, with the most expensive pink and red stones selling for $50,000, the consulting company said. The most expensive diamond ever sold is the 100.1 carat Star of the Season, bought for $16.5 million in Geneva in 1995 by Saudi Sheikh Ahmed Hassan Fitaihi. The largest gem ever found is the Cullinan, which was discovered in 1905 in South Africa and weighed 3,106 carats, according to London-based Diamond and Trading Company. Finding Stones Diamond miners are spending more to find the stones. De Beers plans to invest 1.2 billion rand ($175 million) in opening South Africa's Voorspoed mine, which was closed 97 years ago, and a further 1 billion rand on a project on the sea bed off South Africa's coast. In Canada, De Beers is spending C$2 billion ($1.8 billion) digging the Snap Lake and Victor mines. ``Diamond stocks have underperformed other mining stocks in this commodity bull-run,'' says New York-based James Passin, whose $500 million Firebird Global Fund has a 10 percent holding in diamond stocks. ``This is about to change.'' --With reporting by Antony Sguazzin and Stewart Bailey in Johannesburg, Xiao Yu in Beijing, Debarati Roy in Mumbai and Tan Hwee Ann in Melbourne. Editor: Carrigan (jnp/sds) Story illustration: For more diamond news, see NI GEM BN . For jewelry-related new, see NI JEWELRY BN . For top commodity stories, see CTOP . Click on for the WWW International Diamond Consultants Ltd. Web site. See for the Minesite Web site.
De Beers boosts growth spend By: Gareth Tredway Posted: '28-JUL-06 12:16' GMT © Mineweb 1997-2006 JOHANNESBURG ( -- De Beers is spending a lot more money in the search for and development of new diamond mines, according to its interim Results presentation released on Friday. The world's largest diamond producer spent $394 million in the first half of 2006 on expansion projects in South Africa and Canada, compared to a mere $90 million in the first half of last year. This figure is expected to double to a total of around $800 million by the end of 2006, and the same amount can be expected next year. In 2005 the company spent a total of $370 million on expansion while only $60 million was spent in 2004. Gareth Penny, managing director, says the company will achieve a net 10% increase over the next five years from the new projects. Currently De Beers produces just under 50 million carats a year, so another 5 million carats will be added to that. The new approved projects include Snap Lake (2.4 million carats a year) and Victor (630,000 carats a year) in Canada, the Sea Areas (260,000 carats) and Voorspoed (595,000 carats) projects in South Africa, and the new Orapa 3 plant in Botswana which will boost production from 6 million to 10 million carats a year. All together this equals about 8 million new carats in total. But that is not all, according to the fact book from major shareholder, Anglo American, De Beers also has early stage plans for the $1 billion Gahcho Kue project in Canada, which would start producing in 2011 and the Finsch life extending Block 5 project, which would also come on stream in 2011, costing $523 million. Exploration The search for new diamonds is also on, with the company spending $75 million in the interim, on exploration expenditure compared to $50 million in the equivalent six months last year, an increase of 50%. For the whole of last year a total of $111 million went into exploration and $90 million the year before that. This exploration is going on in Botswana, Angola, Guinea, and the Democratic Republic of Congo (DRC) and in Canada. Chairman, Nicky Oppenheimer, says he is most excited about the work in Angola and the DRC. "We are very encouraged by the early results," said Oppenheimer. Paying for it all The company says it can stretch its revolving debt facility to about $3.7 billion but adds that by the end of next year or early 2008, it will reach a peak of around $3 billion from the current level of $2.48 billion at the end of June. Operationally the company generated $353 million in the first half of the year, compared to $158 million in the first half of last year. For the whole of financial 2005, De Beers generated $473 million in cash from operating activities. @:
SUNDAY TELEGRAPH Botswana diamond project 'in the top 10' By Edward Simpkins (Filed: 09/07/2006) African Diamonds, the Aim-listed gemstone exploration company chaired by John Teeling, is expected to announce this week that it has significantly upgraded the size of its find in Botswana and to say that it believes the resource could become one of the world's 10 largest diamond mines. The company has a joint venture with De Beers, the diamond giant, which owns 51 per cent of the project and can acquire up to 70 per cent by funding the exploration work near to its existing mine at Orapa in Botswana. The resource was discovered by a young De Beer's geologist, Mark Scowcroft, who left the company after failing to convince it that its geological models were incorrect. He applied for licences over the area and together with African Diamonds set up an exploration project on the site. De Beers was forced to buy back in when Scowcroft was proved correct. Now, it seems that the resource, known as AK6, is even richer than had been thought. A drilling campaign and testing of rock samples by De Beers has revealed that the size of the kimberlite deposits, the volcanic rock containing diamonds, is much larger than estimated. It has also discovered that part of the deposit contains rare class two diamonds that are chemically pure and tend to be larger than ordinary stones. Both the 45-carat Hope diamond in the Smithsonian in New York and the Cullinan diamonds, part of the Crown Jewels, are class two gems. The discovery of the stones is expected to raise the overall value of the proposed mine to around $150 per carat and production to an expected 1.5m carats per year. Under previous predictions, analysts had expected the mine to produce revenues of around $3.6bn (£1.95bn) and attributed a value of $6 per share to African Diamond's shares. That figure is now expected to be revised substantially upwards. The new geological model the miners are working from also indicates that there is a 50 per cent chance of making a further similar discovery nearby and drilling is expected to confirm that over the next few months. The company's other diamond exploration assets in Sierra Leone and Guinea will be spun off into a company called West African Diamonds. African Diamonds' shareholders will receive shares in WAD on a four-for-one basis and the company is expected to be listed on Aim later this year when it will also raise money to bring two projects in Sierra Leone into production.
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