TORONTO, Nov. 9, 2017 /CNW/ - Advancing technology has contributed to a continuing boom in the mining of "special" diamonds that help keep the market buoyed, according to Paragon International Wealth Management.
Paragon International Wealth Management is a Toronto-based investment firm with particular expertise in acquiring and managing fancy colored diamonds for its clients' investment portfolios.
In the last five years alone, 61 diamond finds were significant enough to warrant press releases by the companies that mined them. (Publicly traded mining companies must announce developments that might impact their stock price.)
Sometimes, the perceived value of the diamond comprises a large proportion of the market capitalization of the company that mined it. The 1,111-carat Lesedi La Rona recovered by Lucara Diamond Corp. in 2015, for example, was estimated at $75 million, or 15 percent of the company's total value. Similarly, Lucapa Diamond Co., with a market cap of $100 million at the time, uncovered a 404-carat stone in 2016 worth over $15 million.
Announcing noteworthy diamond finds keeps market interest high, Paragon International Wealth Management noted. Rio Tinto announced the 187-carat diamond recovered from its Diavik mine in Canada as the largest ever found in North America. Similarly, a 28-carat fancy pink diamond uncovered by Alrosa was the largest of its kind found in Russia.
The bigger the diamonds, especially if they are colored, the better for headlines and investor interest, Paragon International Wealth Management added. Technology has also played a role. Lucara, for example, recently equipped the processing plant of its Karowe mine in Botswana with leading technology to enable large diamonds to be identified and recovered whole.
Gem Diamonds, however, has been less successful with technology at its Letseng mine in Lesotho, another source of large diamonds. Gem recently told analysts that its average price per carat included a breakage rate of 80 percent due to technology limitations.
Paragon International Wealth Management said that public announcements of noteworthy major diamond finds are a helpful barometer for the market. But, they're not necessarily the last word. Some mines operators, like Rio Tinto, do it rarely and others, like DeBeers, don't announce them at all.
About Paragon International Wealth Management Inc.
Paragon International Wealth Management in Toronto acquires and manages fancy colored diamonds as key components of a clients' hard asset investment portfolio. The firm's expertise in colored diamonds, which experience much higher profit margins than other hard asset investments, helps clients achieve significant annual investment returns.
SOURCE Paragon International Wealth Management Inc.
Renseignements: Paragon International Contact Info: Operations Manager: John Moore, [email protected], www.paragoniwm.com