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Botswana Diamonds extends operating losses
Time:2013-3-27 14:06:26 Source:diamond china   Share Us:

Botswana Diamonds extended its operating losses to £256,000 ($389,237) during the six months to the end of December 2012 from £177,000 ($269,121) a year earlier.

Pre-tax losses also widened to £259,000 ($393,798) from £207,000 ($314,735) a year ago.

The losses were attributed to administrative expenses.

Meanwhile, company chairperson John Teeling said that their recent entry to Mozambique stemmed from frustrated attempts to develop diamond operations in Zimbabwe.

“The Save River drains the Marange area of Zimbabwe where several mines are producing collectively up to 12 million carats a year,” he said.

“The belief and hope is that the Save contains alluvial diamonds washed down from Marange. “

Teeling also said that while the fundamentals for diamonds look extremely robust with the Bain report predicting until 2020 and beyond a 6 percent annual growth rate in diamond demand against an expected 2.5 percent growth rate in supply, this was not transferring into diamond companies share prices.

"Explorers in general are out of favour. This is normal at this stage of the economic and stock market cycles. As confidence returns to economies, investors will be prepared once again to take greater risks,” he said.

"Exploration is risky, but to the victor go the spoils. Botswana Diamonds has good ground in the best diamond address in the world. It has an outstanding partner with technology never before used in Botswana.”

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