Keep an eye on the diamond mining sector as we seem to be in a period in which mines are struggling and operators are pulling back.
We know about Anglo American's plans to divest from De Beers, but we also learned that Lucapa Diamond Company is looking to divest from the Mothae mine in Lesotho, and recently Stornoway Diamonds announced the closure of the Renard mine in Canada.
We also know that the alluvial miners along the Orange River in South Africa are under tremendous pressure, with several already halting operations.
So, what’s going on? The bottom line is that these operations cannot be sustained in a prolonged weak market, especially if they’re the only asset in a company’s portfolio with relatively low production.
Diamond miners are under pressure. What does that say about the diamond market? And what’s the remedy? My latest video explores...
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