The diamond mining sector has not performed as expected over the past couple of years. Pundits were predicting flat production and rising demand and a consequent increase in prices, but with most polished stones produced apparently in surplus the anticipated benefits have not accrued.
But one diamond miner that appears to be bucking the trend is Lucara Diamonds from the Lundin group of companies. That is because large good quality stones still generate premium prices and the large stone count from its AK6 diamond pipe (its Karowe mine) in Botswana’s Orapa/Letlhakane district – its only current producing asset – has proved to be well above expectations and generating very high revenues as a result. Against this background Lucara is one of the only diamond mining companies outside De Beers which pays dividends to its shareholders….
This is the intro to my latest article published on South African website biznews.com. To read the full article click on this link