Ensuing discussions limited to the Group of 12.
THIS THREAD IS FOR THE DISCUSSION OF THE 12 DIAMOND STOCKS LISTED
BELOW ONLY - PLEASE DO NOT REQUEST INFORMATION OR DISCUSSION ON ANY OTHER DIAMOND STOCKS - YOU WILL NOT BE ACCOMMODATED.
The following research is a culmilative effort to discern some of the
best fundamental diamond stocks which exist today. Some are currently bouncing off the 52 week lows., others have made new lows due to the weakness in the gold market as well as other factors.
The following stocks featured will be reviewed thru a min- 5 part series or more.
THE DIAMONDS
Most would agree that the recent events and discoveries in the
NWT beginning with developement projects such as Diamet Minerals
and Aber Resources bodes very well for the future of Diamond production of Canada as well as North America. The World Class
discoveries by both speak volumes for the future of the North West
Territories as well as evidenced in the burst of exploration expenditures since the early 90's. Many opinions abound as the direction of the industry going forward. Will DeBeers maintain the
cartel., will they still be the driving influence of times past.? The nature
of the industry dictates a certain amount of secrecy., from the exploration level thru the marketing phase. Currently DeBeers control
over 75% of world diamond marketing thru its marketing branch.,
CSO. This being a fluid market changes will be inevitable. Recently
DeBeers reported a declining sales in the last 6 months 97., largely
due in part to weaker Japanese sales in Asia. The DeBeers marketing
strategy has been successful watching a steady increase in large
stones over the last 15 yrs., as well as the latest increas of 5.7% in
December of 96 for stones in sizes of 2.2 carats and above.
Currently approximately 30 pipes are primary producers of gem quality
diamonds today. The new production from Diamet and Aber will
account for 10% of the new world production. As these sources approach production., some of the pipes will be ending production.
DeBeers has worked 15 yrs at generating the most successful marketing campaign to date "Diamonds are Forever." They have not
only engendered the love and beauty of these natural beauties but
have linked it successfully to world culture. So with this backdrop it
would be beneficial to look at the shaper and movers in todays market. The best way to approach these answers could be examining
the current exploration efforts and the toiling of those souls in the
Diamond Fields of the world in what can be the most tedious and yet
so gratifying world effort mustered today. From a market point of view., the immediate gratification is watching one of these companies
sink a 2" core into kimberlite and be rewarded with an eye popping
visibile in the core. In exploration this is rare., so rare that many geologists work for years never seeing this occur. Bear this in mind
going forward. Over 5000 kimberlites are known to exist worldwide.,
with 1000 known to carry diamonds. However 50 will have any economic significance. Not very good odds., huh. Dont be fooled by
the numbers. One has to only look at the NWT to defy those odds.
The cratons of the world provide the most stable enviroment for diamond genesis and preservation. The areas of S. Africa., Botswana
Angolo., Sierra Leone have been historic producers., and the NWT
will soon be joining the elite. When choosing exploration companies
it does help to know the technicals behind those companies.
The following selections are based on several reasons., the least of
which may be apparent now., but could be in the future.
When examing these companies it is beneficial to know the sampling
and exploration techniques involved with those companies as well
as the individuals recognized as the world experts in the field. So
for the most part. The following individuals have links and exploration
techniques associated with the following companies as well as world
acceptance as to credibility in the industry.
J.J. Gurney presently of Cape Town Services
Dr. Norman Lock (sited and drilled the Jwaening Mine
Botswana Africa
Charles Fipke of Diamet Minerals fame
Dr. Luc Rhombouts diamond evaluator worldwide
Dr. Nicholai Pothenko., former member of the
Russian Acamdemy of Sciences., work leading to the Siberian
Kimberlite Discoveries. These individuals today have paved the
road for the diamond industry today.
The following reviews have been based mainly on the technical expertise., and long term approach needed in the business today.
They have exhibited some crucial values which may have been lost
in the current market.
1. Technical expertise
2. Ability to rasie money in a bearish enviroment
3. Persistance in exploring the geology.
So her is one mans feeble attempt to present these companies.
time and space constraints notwithstanding so bear with me.
EOM |
