Friday, January 03 14:47:34
Irish company Botswana Diamonds, led by John Teeling, is being tipped to outperform the FTSE All Share in 2014 by UK brokers Dowgate.
The analyst report said that for micro AIM exploration companies to advance to the next level to what is considered to be the ultimate goal of mine development, it can be beneficial to work alongside a larger player.
"We believe Botswana Diamonds (BOD) has made a significant move in teaming up with a major player in the diamond world."
"Alrosa may not be a household name in the same manner as De Beers, but Russian based Alrosa can claim to be the largest diamond producer in the world with 17 active mines in Siberia and thus an important industry name. BOD has a 50/50 joint venture (JV) with Alrosa to explore the Botswana area of Orapa. Botswana is certainly the right address to have, as the country is the largest diamond producer by value in the world. Moreover, Botswana is considered to be the Switzerland of Africa, given that it is stable, democratic and has the fourth highest GDP per head in Africa."
"The management team behind BOD, led by its charismatic Chairman John Teeling is seeking to repeat the success they previously had with African Diamonds (AFD) in Botswana. AFD listed on AIM in 2003 at 7p and took ground in Botswana with De Beers and then went onto make the significant AK6 (Karowe) discovery the following year. Within three years of listing, the stock price zoomed up to 170p, a 24 bagger return from the original IPO for investors getting out at the top. De Beers sold its stake in AK6 to Lucara in 2009, and then Lucara subsequently acquired AFD for circa $90m in 2010."