Diamonds mining investors losing sparkle in Australia

found oct 15, 2007 at bordermail.com.au

WHILE diamonds are a girl’s best friend, the precious stone is failing to attract the interest of investors during an unprecedented boom in the resources sector.

diamonds mining investors australia.
photo: kevin wills

Flinders Diamonds managing director Kevin Wills said diamond explorers were finding it hard to raise equity and get the market interested in the commodity.

“Diamond exploration in Australia in 2007 is at a low ebb,” Mr Wills said.

“While other commodities are booming the same cannot be said about diamonds.

“Today’s exploration is dominantly by junior companies and, as diamonds are not flavour of the month at present, it is difficult to get the market excited about most company’s activities.

“This makes it hard to raise equity funds.”

Flinders is exploring for diamonds in Western Australia, South Australia and the Northern Territory.

Mr Wills said there had been a gradual downturn in exploration in Australia during the past 10 years, despite a worldwide diamond shortage and increasing prices.

“Most major diamond explorers have either pulled out of Australia or considerably downsized their exploration activities,” Mr Wills said.

“This has resulted in the total exploration spend being well below a level where significant discoveries are likely to be made.”

Mr Wills said a major discovery would reinvigorate Australia’s floundering diamond industry.

“One thing that does attract explorers, like bees to a honeypot, is a significant discovery,” Mr Wills said.

“This has happened in Canada since their discoveries in the 1990s and much of the world’s spare diamond exploration cash has headed northwards.”

Mr Wills will be speaking at the Paydirt World Diamond conference starting in Perth today.

Flinders chief appeals for diamond explorers

by ANTHONY KEANE October 15, 2007 for the advertiser found at news.com.au

DIAMOND explorers are missing out on the resources boom, says Kevin Wills, managing director of Adelaide-based Flinders Diamonds.

Speaking on the eve of the Paydirt World Diamond Conference which starts in Perth today, Dr Wills said diamond exploration in Australia was at a low ebb.

"While other commodities are booming, unfortunately the same can't be said about this nation's diamond search," he said. "There has been a gradual downturn in diamond exploration over the past five to 10 years, strangely at a time when there is a developing worldwide shortage of diamonds and prices are at gradually increasing highs.

"Most major diamond explorers have either pulled out of Australia or considerably downsized their exploration activities. This has resulted in the total exploration spend being well below a level where significant discoveries are likely to be made."

Dr Wills said one thing that attracted diamond explorers was significant discoveries, and Australia had not had one of these since the 1980s.

"Part of the reasons for the lack of discoveries is that Australia is a hard place to explore - it is often covered by a blanket of regolith and deeply weathered rocks," he said.

"On the other hand, the country has a great climate for exploration and low sovereign risk so it should be an attractive destination for exploration activity."

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