With the price of diamonds expected to increase by 3-6% a year over the next decade, Kimberley Diamonds is sitting pretty after recording a boost in its listing price from 40c to $1 since mid-October .
Managing director Lee-Anne De Bruin told The Australian Financial Review the recent increase in the company’s share price came down to two things.
The first being that the mine operates on a cash flow-positive basis, and the second is that it has plenty of exploration upside.
The company was further encouraged by the third quarter results of world-renowned jeweller Tiffany’s which recorded a 50% increase in net profit.
The result is good news for the diamond miner which has a life-of-mine offtake agreement with the jeweller, providing the business with its majority of yellow diamonds.
Read more here.
Business Insider Emails & Alerts
Site highlights each day to your inbox.