In the media

Junior diamond sector lambasted by boss of DiamondCorp

13 March 2013

Author: Mining Journal

The credibility of junior diamond explorers and producers has been damaged as the industry has ignored basic mining fundamentals and over-promised on projects, according to DiamondCorp plc’s chief executive, Paul Loudon.

Speaking at a conference in Johannesburg, Loudon said the junior diamond sector had a lot of work to do to restore credibility with investors.

“We have ignored basic mining fundamentals and abandoned critical judgement. There has been way too much over-promising and under delivering,” Loudon said.
He added that many companies have depended on higher diamond prices and unrealistic projections to look attractive to investors.
“Many of the diamond projects that have attracted exploration and development capital in the past seven years should never have done so,” he said. “As a result, we now have a lot of work to do to overcome a significant credibility gap that the industry has with bankers and investors.”
Loudon said junior diamond companies needed to return to mining fundamentals, focus on their core competencies, seek out alternative financing sources with robust projects and, above all, rebuild investor confidence. 

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