Botswana Diamonds (BOD) said it remains optimistic about a revival in the diamond industry and is strategically positioning itself to capitalise on this anticipated recovery.
BOD chairman, John Teeling, said in the company’s interim half-year financial results that the BOD is aware of the current rush to access critical minerals.
“The diamond market will recover and there will also be a shortage of natural diamonds in the future – and this is what we are positioning ourselves for,” Teeling said.
“This is a very active and exciting time for BOD. The Artificial Intelligence (AI) analysis has been a great success.”
According to Teeling, BOD has applied cutting-edge technology onto a massive, high-quality database to accelerate a huge amount of advanced diamond exploration work in a fraction of the usual time – and at a fraction of the normal cost.
“Secondly, the AI analysis has identified a series of polymetallic targets covering copper, cobalt, silver, zinc, and gold,” he said.
“With hindsight, this should not have been a surprise. Botswana is predominately a diamond province and underexplored for other minerals.”
As a result of this analysis, BOD has applied for eleven prospecting licences over open ground covering over 7,000 sq km.
The company said the applications have been accepted and is waiting to hear if they have been granted.
“Thirdly, we have received, after a long delay, a mining permit over our Thorny River deposit in South Africa,” Teeling said.
“Thorny River is a dyke system close to the mined-out Klipspringer mine and the mined-out Marsfontein mine.”
Teeling has acknowledged that the diamond industry is going through tough times, being hit by two events – a downturn in retail sales and the growth of Lab Grown.
“The weakness in overall sales is a cyclical downturn exacerbated by a post-covid surge in luxury purchases and by the impact of Lab Grown,” he said.
“The market correction may already have run its course, Lab Grown is a bigger concern. The industry will become bimodal – basically two distinct segments – value for money lab-grown and the exclusive natural diamond segment.”
While a lab-grown is diamond made in an industrial factory, Teeling said the product is cheap and will get cheaper, while a Natural diamond is extremely rare.
“It can be up to 2,500 million years old!” Teeling said.
“Comparing a 5-carat natural with a 5-carat lab-grown is like comparing a Ferrari to a Ford Mondeo. Both excellent cars but one has the aura of rarity, aspiration, and fashion.”
Teeling said a significant growth in the natural diamond market is females buying for themselves.
“As women get wealthier, they have greater disposable income some of which goes on beautiful things – including diamonds,” he said.
“This is particularly evident in the United States where quality diamond sales have held up well. This is already happening in Asia and the Middle East.”
