Recently, the Botswana Diamonds PLC (BOD) reported unaudited Interim Statement and Financial Results for the Six Months Ended 31 December 2023. The report referred the turbulent times & shared some positive developments in Botswana Diamonds.
The key takeaways points are,
1: A gravity survey has discovered a high-grade anomaly similar in size or larger than BOD’s KX36 high-grade kimberlite pipe in the Kalahari.
2: Positive progress on the awarding of the Thorny River Mining Permits.
3: There is renewed interest in the Ghaghoo diamond mine,
4: A Prospecting Licence was granted over diamond properties in Eswatini after a long application period.
While the diamond market was depressed throughout 2023, it is important to recognise that it is the long term trend which is important for the diamond industry, and particularly for explorers. Meanwhile 2024 has started in more positive fashion with diamond sales taking place and a semblance of stability after a difficult last year.
“We believe that the long-term outlook for mined diamonds remains strong. Over the next 20 years up to 3 billion people will enter the Middle Class. These new Asian and African consumers will want many of the products purchased in the West including diamonds. Lab grown diamonds will take a share of the overall growing market but there are strong indications that the rarity of natural mined diamonds will always prevail and be valued” said, John Teeling, Chairman-BoD. Any discovery by BOD in 2024 is unlikely to come into production before 2032. But it is important to realise that the shareholder base for explorers differs radically from that of producers. A successful diamond find would be expected to ratchet up the share price and provide liquidity for shareholders wishing to cash out.