>>>Other than being in the early stages of development, do any enjoy special situations -- exceptional quality, density of deposit, ease of production, etc., that was what I had in mind.<<<
Diamet has started mining this week, we will see after the first qtr results. I think these numbers will reflect what other NWT juniors have in store. Dia Met will be able to report revenues and cash flow, and if these numbers are not bad the investment community will have proof that Canada has made its way into the ranks of world class diamond producing nations. The market will be looking very carefully to see what sort of grade recovery Ekati achieves and what price the diamonds fetch.
>>>Sorry, but I see ever decreasing demand and manipulation of the supply side, across the board, in the diamond industry. De Beers may offer a solid and versatile infrastructure but they are prey to the manipulation that holds them afloat.<<<
As most of us know, since mid 1997, the southeast Asian financial crisis has reduced diamond consumption and reduced gem prices throughout the world. IMO, as the individual Canadian companies move into production, Debeers will increase its efforts to persuade cmpanies to market through CSO. The opening of the Debeers office in Vancouver is evidence that Canadian based companies play in the diamond industry. The development of a working relationship between Debeers and many of the new producers I see evolving in Canada will, in my opinion be of great importance in the years to come. Despite the complexities caused by the marketing of diamonds, in an industry in which Debeers plays such an important role, I am convinced that several canadian companies will become very profitable companies. I am a bullish diamond individual and I am comfortable to say that diamond stocks in Canada are oversold and the tide will change any moment. There are a few cheap exploration companies, I follow very closely, (check my SI bookmark) which I think have potential to increase substantially. My personal and corporate portfolio are increasing exposure to stocks such as Debeers, Diamet, Southernera, Ashton Mining of Canada, Aber, etc juniors we follow and trade. I am hoping that the dominant role of Debeers in the marketing of diamonds will ensure stability in the prices of gem quality stones. This may not answer all the questions you asked as I don't consider myself as an expert but I hope it helped.
Regards
Frank Famularo
famularo@sprint.ca |
