05 November 2002 22:13
The Investment column: European Diamonds adds a little sparkle
IF DIAMONDS are a mining explorer's best friend, kimberlite is his next best friend. Kimberlite is the sort of
volcanic rock in which, in some cases, diamonds are embedded, and European Diamonds has found a good deal of the stuff
in central Finland, where it is hoping to establish the Continent's first diamond mine.
That is the dream of geologist Roy Spencer, whose success in finding commercial quantities of diamonds in Russia led
investors to back him when he said he thought the rock formations across the border in Finland may yield the same. The
shares floated at 70p in December 2000 and, after figures showing losses rose from pounds 366,000 to pounds 609,000 in
the year to June, were down 9p to 150p yesterday.
Exploration is slow work and shareholders will no doubt have to stump up again for the next phase next year, but Mr
Spencer has made some exciting if inconclusive early finds so far. Work should progress faster through the winter, now
marshland has frozen. At the end of the day, there are either commercial quantities of diamonds in Finland or there
aren't. European Diamonds is, therefore, not one to bet the pension on, but it could be a high-reward investment
for someone with cash to spare.
[UKIR [UK & Ireland Intelligence Wire]] |
RUSSIA IN FACTS
