AFRICAN DIAMONDS (AFD).

Investors Chronicle, April, 2007

African Diamonds' shares have lost their sparkle in recent months. That's even though the company retains heavyweight institutional investors on its share register, led by JP Morgan with 10 per cent, Merrill Lynch and De Beers with 5 per cent each, and rival Firestone Diamonds with over 6 per cent.

The problem seems to be that all the excitement following the discovery of the potentially world-beating AK6 diamond pipe in Orapa province, Botswana, has subsided to a point where African Diamonds is now considered to be a developer and not an explorer. But AK6 is a major project - its 9.5 hectare pipe is expected to contain more than 60m tonnes of kimberlite, averaging 24 carats per hundred tonnes at a June 2006 valuation of $150 a carat. The project is now at a...

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