Lockdown made life “very difficult” for Irish explorer Botswana Diamonds as the market for diamonds was hit. However, the company is now looking at a “substantial recovery”.
Announcing its annual results on Monday, the diamond explorer said that the “ drastic” fall in world economic activity had a spillover effect on diamond sales and prices.
"Demand effectively stalled, with many auctions abandoned, while prices where deals were done were down by as much as 40 per cent. Few diamond mines are profitable in that type of business environment," said chairman John Teeling.
However, despite the challenges Mr Teeling added that there were now signs of a “substantial recovery” in both demand and prices.
Mr Teeling said the group made “significant progress” during the period under review in Botswana, South Africa and in Zimbabwe, including what could be a “transformative acquisition” of Sekaka Diamonds in Botswana.
In the year ended June 30th, 2020, the company made a pre-tax loss of £391,225 (€427,092), compared with a loss for the same period in 2019 of £772,104. Total assets were stable at £8.1 million,
Looking ahead, Mr Teeling said the “ future looks good”.
“The demand for diamonds is recovering. We are exploring in prospective areas for gem quality diamonds. We have made progress in Botswana. The acquisition of a known diamond reserve, KX36, opens doors. The discovery of a ‘blow’ on Thorny River was positive. We will now look at the commerciality,” he said.
