Natural diamonds dominate market
Despite anticipated growth of lab grown diamonds, the diamond explorer, Botswana Diamonds (BD) remains optimistic that natural diamonds will continue to dominate the market, post the global COVID-19 pandemic.
“A natural diamond is a rare creation of nature from billions of years ago; these diamonds will certainly endure and natural diamonds are internationally scarce, rare collectibles,” said Botswana Diamonds Chairman, John Teeling.
Teeling’s comments were made at the company’s annual general meeting indicating that the diamond market recorded a significant recovery from the impact of COVID-19 pandemic.
“Diamond mining companies, even the more marginal operators, have had a good post COVID-19 return to business,” Teeling said.
With operations in Botswana, South Africa and Zimbabwe, Teeling cited that both prices and volumes have increased.
“Even more interesting is the large growth in sales in the United States. But global recession and Chinese turbulence suggest the near-term future could be rocky.”
He however warned that the growth in sales of lab grown diamonds must be watched, citing that a comparison is the luxury goods sectors.
“You can buy good quality department store clothes but the luxury clothing sector continues to grow. Likewise, the demand for buying luxury cars still continues to grow.”
Teeling further warned
that exploration companies have no revenues and active explorers spend money.
“In recent years, BD has been funded by a small group of private investors as little or no funding was available in London or Johannesburg.”
Notwithstanding the financing headwinds, Teeling said BD strategy is to have a pipeline project at every stage of development.
“Our first production will come on stream in the near future. We have a number of projects where diamond deposits already exist. We have drill ready exploration projects. Our task now is to get our message out to investors,” said Teeling.